5 Costly 401(k) Mistakes That Could Derail Your Retirement

Core Insights - Participating in an employer 401(k) plan is beneficial due to automatic paycheck deductions and potential employer matching contributions, which can be considered free money for retirement savings [1][2] Group 1: Benefits of 401(k) Plans - 401(k) plans are easy to fund as contributions are automatically deducted from paychecks [1] - Many employers offer matching contributions, providing an opportunity for additional retirement savings [2] Group 2: Pitfalls of 401(k) Plans - 401(k) plans typically do not allow investments in individual stocks, which may hinder the ability to achieve higher market returns [5] - High fees associated with mutual funds and target date funds can erode savings over time [8] - Target date funds may be overly conservative, potentially limiting growth in retirement accounts [6]