Lastly, if you have maxed out the Roth IRA’s, we advise contributing the remainder of the 15% back to the 401k.
Retirement accounts should be invested in stock mutual funds. This gives the greatest chance for growth over time. Retirement accounts are not short-term investments, so volatile market movements shouldn’t be a concern for the long-term investor. The best investors have a diversified mutual fund portfolio, investing in both U.S. and international stock comprised of small and large companies.
In short, remember these points:
- Take advantage of your employer match. Start investing in your company 401k.
- When you hit the maximum employer match, contribute to your Roth IRAs.
- Once your Roth IRAs are maxed out, go back to funding your 401k.
- Invest in globally diversified stock mutual funds with both small and large companies.
As a Dave Ramsey Smartvestor Pro, Stewardship holds close to this baby step, and wants to help you accomplish your retirement goals. Set up some time today to talk with our Smartvestor Pro team to help you implement your retirement savings.