Saving 101 The 411 on 401(k)s Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on Tumblr (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Mint.com Published Oct 10, 2014 3 min read Advertising Disclosure The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here to read full disclosure on third-party bloggers. This blog does not provide legal, financial, accounting or tax advice. The content on this blog is "as is" and carries no warranties. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. After 20 days, comments are closed on posts. Intuit may, but has no obligation to, monitor comments. Comments that include profanity or abusive language will not be posted. Click here to read full Terms of Service. You got the job. Congratulations! At the orientation, the benefits office is going to give you a huge booklet about your retirement plan (or a link to a website that would cause a laser printer to catch fire if you tried to print it all). Here’s what not to do: Set the booklet aside, promise to get to it later, and never think about it again. Here’s what you should do. Get the maximum employer match Most 401(k) plans offer a match: you put in some money, your company kicks in some money, too. Nothing should come between you and this money. Always contribute enough to get the maximum match. Say your employer matches 50% of a 6% contribution. That means if you contribute 6% of your salary, the boss will throw in half of that amount, from her own pocket. (Well the company’s pocket, but it’s just as satisfying.). That doesn’t mean 6% is enough to retire on—it’s probably not—but it’s the bare minimum you should even consider. Choose simple, low-cost investments Many 401(k) plans offer dozens of mutual funds to choose from. You can ignore the vast majority of them in favor of low-cost stock and bond index funds. Look for an expense ratio under 0.2%. If your plan offers a low-cost target-date fund, that’s fine, too. Save aggressively, but pay off high-interest debt first Saving big for retirement is a good move—unless you’re also paying down credit card or other high-interest debt. Get the match and maintain an emergency fund, and then focus on killing off that debt. It doesn’t make sense to earn 8% on your investments (a good return) while paying 12% on your credit card bill. Diversify your portfolio Your company may be a cool place to work (foosball table!) and destined for success. That doesn’t mean you need to put all of your eggs in company stock. By all means participate in an employee stock purchase plan (ESPP) or other stock discount plan, but don’t make it a large percentage of your financial portfolio. If your employer goes out of business, you don’t want your savings to go out of business simultaneously. When you move on, take your 401(k) with you Leaving a 401(k) behind at an old job isn’t high on the list of personal finance sins, but it’s rarely a good move, either. It makes it hard to understand your whole portfolio, and you can probably get better, cheaper investment options in an IRA. So roll that old 401(k) over to an IRA. Or, if your new job offers a good 401(k) and accepts incoming rollovers, go ahead and roll the old money into your new 401(k). Whatever you do, don’t cash it out. You’ll pay a 10% penalty, plus a hefty tax bill. Not cool. Matthew Amster-Burton is a personal finance columnist at Mint.com and author, most recently, of Child Octopus: Edible Adventures in Hong Kong. Find him on Twitter @Mint_Mamster. Previous Post 5 Costly Options You Don’t Need in a New Car Next Post 10 Money Tips for Daylight Saving Time Written by Mint.com More from Mint.com Browse Related Articles Mint App News Intuit Credit Karma welcomes all Minters! Retirement 101 5 Things the SECURE 2.0 Act changes about retirement Home Buying 101 What Are Homeowners Association (HOA) Fees and What Do … Financial Planning What Are Tax Deductions and Credits? 20 Ways To Save on… Financial Planning What Is Income Tax and How Is It Calculated? Investing 101 The 15 Best Investments for 2023 Investing 101 How To Buy Stocks: A Beginner’s Guide Investing 101 What Is Real Estate Wholesaling? Life What Is A Brushing Scam? Financial Planning WTFinance: Annuities vs Life Insurance