It’s one of the first decisions you'll have to make when you join the company 401(k) plan: where to invest your savings. You will be offered a menu of investment choices, typically mutual funds (stock funds and bond funds). To reduce your risk of financial loss, you’ll want to spread your savings over several types of funds (called diversification) rather than putting it all into one fund.
What’s the right mix of mutual funds for you? It’s about finding a balance between riskier investments and safer investments—and that depends largely on factors like your age and your personal tolerance for risk.
Remember that high fees can erode your savings, make sure you understand the fees associated with the funds you select.
Use this calculator to see how much your savings might grow in average, good, and bad times:
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