The concept of a 401(k) is weird to me. The government has declared it is a way to invest for your retirement, but you only get to use it if your company decides to offer it to you. If your company doesn’t feel like offering you this government tax break, too bad, you’re out of luck.
To make it even weirder, company’s give you a SHORT LIST of mutual funds you’re allowed to invest in inside of your 401(k). They all suck? TOO BAD.
So if you happen to have a 401(k) through your workplace and you need to pick how to invest, here’s the post for you! I also have a video on how to analyze a mutual fund if you scroll down.
And, as a reminder, don’t get too stressed about this decision. Perfectly picking investment choices isn’t what is going to make you rich. Plowing more money into your investments is.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.