In 2010, I moved into a friend’s townhome close to downtown Salt Lake City. My work was a little over a mile away, but instead of hopping in my car each morning I threw on a good pair of casual shoes and started walking.
I walked to and from my job in the same shoes for about 5 years. EVERY. SINGLE. WORKDAY. As best as I can estimate, I walked around 2,880 miles in that one pair of shoes.
401(k)s are incredible tools for building future wealth. They have a lot going for them: tax advantaged accounts with tax-free (Roth) or tax-deferred options, well-diversified investments through mutual funds, and high total contribution limits.
But truly one of the most admirable benefits of a 401(k)--which many companies offer through their 401(k) plans--is the company match.
“Cash is king,” the popular saying goes. Of course, some also say that holding cash--rather than investing it--is money wasted. Which is it? Recent research suggests that we’re probably asking the wrong question.
When considering what cash really does for us, the research points to a greater value which may not be as obvious: Having a greater amount of cash savings actually increases one’s overall life satisfaction and financial well-being in a really big way.
In the past I’ve talked about the importance of rebalancing and changing your asset allocation as you approach retirement. Making these tiny but crucial “course corrections” is a very important step in the retirement saving process, but it can take time and be a bit complicated, depending on how many investments you have to work with.
Wouldn’t it be nice if there was a service that would change your 401(k) asset allocation for you--automatically?