Monday morning's market sell-off (^DJI, ^IXIC, ^GSPC) has investors in a panic over their short-term stock trades and long-term retirement investments. What do investors overlook when contributing to their retirement plans, especially during times of market volatility?
"We can only control what we can control," Vanguard Senior Wealth Advisor Cassandra Rupp, CFP, asserts, explaining to Yahoo Finance some of investors' biggest mistakes when managing their 401(k) plans.
"Everyone's time horizon can be different. I mean, if we're speaking to some of this reporting in 401(k)'s for retirement savings, depends on what stage of your career you're at. We're seeing an increase in participant deferral rates above 4% now. So we're seeing more and more individuals start to automatically save out of their paychecks into these types of plans," Rupp states. "We're seeing employers continuing to match these. If we're looking at average deferral rates, including the employer match, we're getting in excess of 11%."
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This post was written by Luke Carberry Mogan.