I've been with my employer for almost 20 years and have had the same 401k account with TRowePrice.com since I started at $12/hr. I put in 5% when the benefits kicked in as my employer will match 4% to my 5% and have left it alone for about 18 years. A couple years ago, I got a promotion that pushed me from around $50k/year to $100k/year so I started taking retirement a bit more seriously as I'm no longer living paycheck to paycheck. I bumped my 401k contribution from 5% to 15% and left it alone.
I was discussing the 401k plan with a coworker this morning who has been around the same amount of time. He said that he's earned a lot more than I have because he modified his investment mix by working with a company called MorningStar. I found the MorningStar Retirement Manager in my account, and it is giving me this advice on investment mix. They say if I pay $71 per month, they'll automatically adjust the investments, however this fee goes up as the account grows (if my account balance doubles, the fee doubles).
Currently, 100% of my retirement account is in T ROWE PRICE RETIRE 2045 TR E. It's been in the default 2045 retirement plan since I started working here and I just assumed that they would know what's best however my coworker has me worried. As of 2/29/2024, I've contributed $74,558 and my employer has contributed $38,804. The ending balance of my 401k was $188,621. I know next to nothing about finances so I don't know if this is good or bad. Should I just keep the investments as they are, or should I trust MorningStar?
I read the wiki and am still not sure what to do. My coworker also mentioned moving my 401k contributions down to 10% and then putting 5% in a Roth IRA. I don't think I earn enough to need a financial advisor but I really have no clue what to do to help guarantee I'll be able to retire and live a normal life until I die.
original posted by loveisnotawhisper to r/personalfinance on Mon, 04 Mar 2024 21:40:37 GMT.