When it comes to holding stocks or bonds or just about any other kind of investment, financial advisors are pretty much united in their advice: diversify, diversify, diversify.
"Don't put all your eggs in>3 types of retirement accounts
Common forms of retirement saving fall into three buckets.
- Pre-tax accounts: Accounts such as traditional 401(k)s and IRAs are funded with money you have yet to pay taxes>Prioritize matching funds, tax-free retirement income
It's important to have a solid financial foundation, such as a well-established emergency fund, before investing, experts generally caution. From there, they say, prioritize getting what advisors playfully refer to as "free money."
"Once you've got a budget and an emergency fund, and you're investing on Day 1, you should put enough in your 401(k) to get a company match," says Tim Sobolewski, a certified financial planner with the Financial Planning Center in Buffalo, NY.
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