I find that most people I meet are not sure how to invest in their retirement plan and they definitely don’t understand the choices being offered by their plan at work. This is why so many opt for a so called “Target date fund” that has a date near to their expected time to retire. Ah, if it were only that easy.
Has this question ever crossed your mind? If not, it should. Too often, folks just move to the automatic answer to this question; they tell me, “I save in my employer’s 401(k)” or similar plan. “If deposits can come from my paycheck, so much the better”; is a response I hear a lot as well. This answer is much better than not saving at all, but the question is whether this is the best way to save for retirement.