Tips on making the most of your 401(k)
Unlock the potential of your 401(k) with expert tips on contribution rates, portfolio choices, and rollover options to help you achieve the retirement you want.
In this video, we'll walk you through three easy steps you can take after claiming your Betterment 401(k). First, you'll be prompted to choose a contribution rate. This is the amount from each paycheck that will be automatically invested. Your employer may have already set an initial rate for you, but you can change it.
When deciding how much to contribute, keep in mind a couple of things.
First, most experts recommend contributing 10% to 15% of your paycheck for retirement. If you can't swing that now, you can start small and work your way up each year. Second, it's important that you save something, especially if your employer offers a matching contribution.
After picking a contribution rate, comes the fun part, picking an investment portfolio. You automatically start in the Core portfolio. But here's where you can learn more about other options and make a switch. We offer portfolios built by investing experts, with global diversification, low costs, and long-term performance in mind.
Last, but not least, don't forget your old 401(k)s from previous jobs.
One estimate puts the amount of money employees forget in old 401(k)s at $1.35 trillion.
Are any of those dollars yours? Rolling over an old 401(k) could help you avoid potential high fees and access Betterment's rebalancing and tax coordination tools.
So there you have it, three easy steps to get started investing with Betterment. To learn more, visit betterment.com/my401k.