If you have access to a 401(k) at work, chances are that this will be one of your most important retirement accounts, if not the most. Many workers put most or all of their retirement savings into a 401(k), which can make sense because it’s convenient, comes with generous tax savings, and often offers an employer match.
Unfortunately, many people socking away money in their 401(k) aren’t quite approaching the process with the correct mindset. In fact, 64% of Americans putting money into a 401(k) view themselves as savers rather than investors, according to a 2019 Schwab survey. Here’s why that’s a problem.
You need to be a smart investor to build a big enough nest egg
Most 401(k)s give you a choice of just a few investments, which…