A 401(k) is one of the most effective tools for building a secure retirement. It allows you to invest pre-tax dollars, which can significantly boost your savings over time.

The Magic of the Employer Match

Many employers offer to match your 401(k) contributions up to a certain percentage of your salary. This is essentially free money and one of the best returns on investment you can get. Always contribute enough to get the full match.

Choosing Your Investments

Most 401(k) plans offer a limited menu of investment options, often including target-date funds, which automatically adjust their risk level as you get closer to retirement.