How Should I Invest My 401k? 7 Steps to Making a Decision

If you invest in your 401(k) and stay invested, your account balance can grow to $1 million or more. According to CNBC, about 72,000 people have reached the status of 401(k) millionaire at the end of 2014.

But before you can accumulate a healthy retirement account balance, you need to decide how to invest your 401(k) dollars. Based on my readings, many struggle in selecting investments. Here are action steps that may bring clarity and offer guidance in making a decision:

The 401k Plan: The Basics to Know

A 401(k) plan is a qualified retirement plan sponsored by an employer for the benefit of its employees. An employer may offer this type of defined-contribution plan at the workplace to enable employees to save for retirement.