Love The Hustle Blog

What Do You Need to Know to Plan Your 401(k)?

No matter what stage you’re in or how old you are, you can benefit from some tried and true advice to help you plan your 401(k).

 

Whether you’ve already started to plan for your retirement, you’re new to investing, or you are unsure what you should do with your 401(k); here are some essential pieces of advice to help you kick off your retirement planning and help you plan your 401(k) so you can retire well.

Don’t Wait to Start

When should you begin to plan your 401(k)? We often see this question come up and the truth is, there is not better time to start than right now. Many people in their early 20’s and 30’s put off planning for retirement thinking that it will be better to start planning when they have a higher income. The truth is, it’s never too early to start investing in your retirement. In fact, the earlier you start the better. That’s because the earlier you start, the more money you’ll be able to accrue over time thanks to the power of compound interest. So what are you waiting for?

Create a retirement plan

Like with any goal, retirement takes planning and an understanding of where you want to go. You wouldn’t dream of going on a road trip without mapping your destination. The same should go for your retirement. Create a retirement plan (like a map) to get you to your destination.

Don’t assume everything will be perfect

When you retire, your savings become your paycheck and must last the rest of your life. It’s easy to find ways to spend extra money, but much more difficult to deal with a shortfall when you no longer have that steady stream of income.

Have you begun planning for your retirement? Do you invest in a 401(k)? Do you need more information about how to help you plan your 401(k)? Be sure to see more of our advice on how to retire well, here.