GREENFIELD, Mass. (WWLP) – More workers are investing money in their 401K’s and financial advisors say max out, and keep at it.
A 401K is a retirement savings account that’s offered by employers. It allows workers to save and invest some of their paycheck before taxes are taken out.
Fidelity looked at the retirement plans of 14-million people. The average 401K balance was $92,500 last year, up 5% from 2015. They credit increased contributions and a hot stock market.
Most financial advisors agree, start investing early. Financial Advisor Jeff Baker told 22News, “Get started as soon as possible and keep investing out of your paycheck. Every paycheck, I would say take 10% out of whatever you’re getting paid.
According to Baker, you will maximize your 401K by buying shares every pay period. He said you’ll need at least $500,000 saved for a comfortable retirement.