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My employer doesn’t offer a retirement savings plan. You can still have your own tax-deferred savings account for retirement.
(Hint: put your eggs in more than one basket)
Answer: 3. The mutual fund. These investments all have the same expected return. So go for the surest return.
There are no guarantees in the stock market and the performance of individual stocks is highly unpredictable. For example, suppose the following two charts track the price of Your Company’s stock and the stock of General Products over a 10 year period:
Your Company’s stock did better over this 10 year period. However, that might not be the case going forward. Because the mutual fund holds stocks in many companies, you were more likely to get the returns you expect, and get what you expect going forward.
The riskiest investment is stock in Your Company. Why? Because if things go badly your job is at risk, as well as your savings.
(Hint: One Size Doesn’t Fit All)
Answer: 3. A mix (in most cases).
You need your savings to grow, so when you retire you’ll have enough to pay the bills, and stocks have higher expected returns than bonds.
But bonds are safer, and you need your savings to be there when you retire.
(Hint: is one “no-brainer” always best?)
Answer: 2 or 3. A 401(k) with an employer match, or paying off credit card debt.
A 401(k) with a match is better than a 401(k) with no match.
But whether it’s better than paying off credit card debt depends on:
Peace of mind. The more peace of mind that would come from getting out of debt, the better to pay it off quickly.
Icon works like a 401k plan but without the cost, complexity, and administrative burden. We’ve unified workplace savings, personal retirement, and portfolio management into a single solution.Learn More
Employers pay a small one-time set up fee, and no ongoing plan administration fees.
It takes minutes to set up, no plan design required, no federal filing requirements.
Our portfolios are built with low-cost funds from leading asset managers. Icon acts as a fiduciary to our clients.
We’ll help you every step of the way.LET'S GET STARTED