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What Is the Average Return on a 401(k)? Your Guide to Smarter Investing

The article from MSN Money discusses the average return on a 401(k) and provides insights into smarter investing strategies. It explains that the average annual return for a 401(k) can vary significantly based on investment choices, typically ranging from 5% to 8% when considering a mix of stocks and bonds. The piece highlights the importance of diversification, suggesting that investors should not put all their funds into one type of asset. It also touches on the benefits of employer matches, the impact of fees on long-term growth, and the strategy of increasing contributions over time. Additionally, the article advises on the need for periodic rebalancing of the portfolio to maintain an appropriate risk level as one approaches retirement, and it underscores the power of compound interest in growing retirement savings. Lastly, it encourages investors to consider their risk tolerance and retirement timeline when choosing investments within their 401(k).

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/savingandinvesting/what-is-the-average-return-on-a-401-k-your-guide-to-smarter-investing/ar-AA1zjT5u ]