Is Your 401(k) Enough for Retirement?
If only life's long-term decisions were as easy as the short-term ones. You might spend 30 seconds or less deciding if one donut for breakfast is enough, or if you can stay functional all day on one cup of coffee. But deciding whether your 401(k) alone can fund retirement takes slightly more brainpower. You might want to grab that donut and coffee now so you're ready to dive into the details.
Let's start with good news. If you're under 30, you can absolutely fund a comfortable retirement with a 401(k). To do it, set your contribution rate at 10% to 15% of your income and invest primarily in low-cost index funds. Stay at your job until you're fully vested so you make full use of your employer-matching contributions. Also plan on increasing your contribution rate every time you get a raise. Stick with that program for 35 years and you'll have a sizable nest egg by the time retirement rolls around.
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Source Fool.com
