this post was submitted on 05 Jan 2024
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12% 401(k) Contribution - What to do? [USA] (kbin.social)
submitted 10 months ago* (last edited 10 months ago) by lqdrchrd@kbin.social to c/personalfinance@lemmy.ml
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Hi everyone, I recently landed a new job where the base 401(k) contribution for all FTEs is 12% of your salary. This is regardless of your contribution, with no additional match. I realize that this is unusual for most people and it is for me as well. In my last job, I got up to a 6% match so I maxed that out and didn't think on it any further.

I currently contribute an additional 5% on top of the 12% that my employer provides, but got chatting with a coworker who mentioned that they were advised to take that money and, since it was not being matched, put it into the stock market instead. I'm open to learning, but have very little knowledge of stocks, cryptocurrency, or likely any other potential option you may suggest.

For a little extra information, I am in my mid-twenties, earn mid-five-figures/year, have little saved for retirement right now, and am open to any suggestions you may have.

So, what would you do in my situation? Thanks for any replies!

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[–] deegeese@sopuli.xyz 21 points 10 months ago

If you’re not particularly financially savvy, you should always put 10% into retirement in some sort of cheap index or target date fund.

Definitely do not fuck with individual stocks or god forbid, crypto, unless you are sure you know what you’re doing and prepared to lose 100% of your investment.