Find out if you're on track for retirement — and what to do if you're not.
Project your total retirement savings based on your current situation.
The widely cited "4% rule" states you can safely withdraw 4% of your portfolio per year in retirement without running out of money over a 30-year period. That means to generate $5,000/month ($60,000/year), you need a nest egg of $1.5 million. Use this as a starting point, not a guarantee.
Traditional 401(k) and IRA contributions reduce your taxable income now — you pay taxes when you withdraw in retirement. Roth accounts use after-tax dollars now, but withdrawals in retirement are completely tax-free. If you expect to be in a higher tax bracket in retirement, Roth wins. Many advisors recommend a mix of both.
If your employer matches your 401(k) contributions, contributing at least enough to get the full match is the highest-returning "investment" available to you. A 50% match is an instant 50% return before any market growth. Never leave this on the table.