– but make sure you find a good one. You are likely to do better with a Roth 401 (k) if you are a high earner and will pay a lot of tax on your retirement income – but this may not be the case for you. It depends on your tax payments now and expected future tax payments.

Once you have set up a 401(k) retirement fund, you need to take some interest in it – this will repay you handsomely. Most people just put their money in one fund, and forget it. Then, 30 years later they might find it has not grown as much as they expected.

Review your funds annually

To avoid this happening to you, review your fund or funds every year. If you are unsure how to do it, find a good financial advisor – one who puts your interest first. You need someone who will spell out the fund charges, compare them, and recommend you invest in more than one fund. It is never a good thing to put all your eggs in one basket, and this is very true of investing for retirement.

Whether you use a financial advisor or not make sure you do review your 401(k) retirement fund each year. Also remember that if you use a financial advisor he or she gives you a service they will charge for it one way or another, and you need to know how they are charging. It may be coming out of commissions – not a good way – or they may charge you a fee.

You do not need a financial advisor if you are happy to keep up to date with mutual funds and investment – it is not so easy to learn.

Disclaimer

The information on this web site does not constitute an offer in any way. It gives general information, but is not financial advice. The aim is to help you decide what to do about your retirement plan, and the importance of saving for retirement. You should consult a retirement planning adviser with a proven record before setting up a retirement plan.

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