You may remember that earlier, safety features were not included in car design. But as you know, that is no longer true. So you need to watch out for certain things to keep safe. You need to save automatically.

Nearly twenty five percent of eligible workers do not or just decline to sign up for a 401(k) plan. And the Workers who do not sign up are actually risking their future. Plus, this results in approximately $30 billion being left out in the form of company contributions.

And in case only a few rank and file workers do participate, then the higher paid workers contributions will be limited as this is what is stated in the IRS rules.

Hence, today an increasing number of companies have made 401(k) enrollment automatic. But even then, employees can still choose to opt out. Around twenty five percent of large companies have employees who are automatically enrolled in the 401(k). Even though this means that many of the new employees today are in a very conservative investment but still, that may not be quite enough to beat inflation , which eventually eat up a large portion of the spending power of your savings.

And in case you are one of those higher paid employees, then it is advisable to move your money into a stock fund. This way you can take advantage of long term growth too for your investments. You have another option. Just boost your contributions each year until you retire, or max out, whichever comes first.

You need to simplify your investment. You may remember that during the late ‘90s when the stock market was rising, everybody was providing workers with more investment choices.

In fact, there were also a few companies who had introduced new options. While there were some who offered brokerage windows. This way, they were letting employees invest their 401(k) savings in a wide array of funds as well as stocks.