So many of us are just stoked to have a job that we haven’t even given much thought to retirement funds or a 401K plan. After all, most of us have rent, food, insurance and shoes to pay for–who has the time to worry about our lives at 65 when our lives at 25 are already pretty tough?
But that doesn’t mean ignoring a 401K option is a good idea … maybe.
If you have a 401K, you have a few options: You can actively invest and allocate your funds, or you can leave it well enough alone. So which should you do?
That depends on you. If you’re good at keeping up with, predicting and reading the markets and investing, it may be within your best interests to play around with it. However, if you’re not keen on all that? Relying on luck is dangerous, and it’s probably safest for you to set up your 401K (especially if your employer matches your contributions) and leave it alone. There’s a much larger risk associated with moving your money at the wrong time than there is with leaving it be.
Which is awesome, because I’m really lazy and I can’t do math.