401k question — how to start at age 62
62 yo woman starting 1st full time job that offers a 401k, so I am in unknown territory.Can you help me with some advice.Thank you.
Terry Says
Sure,irs never too late to start! Ask your HR department how to get started. Contribute enough to get the full company matching amount each paycheck. They will tell you how much that is. Then choose one or two funds. There is sure to be a S&P 500 stock index fund put half in there. And the other half can go into an equity-income fund. NOT a bond fund. The company will explain your options.
One more bit of advice: stick with this plan no matter what the market does. You have at least a decade to make this money grow before you must start taking some out every year at age 72. I hope you have some savings outside this plan so you won’t get scared out when the market falls.
