Everyone knows that saving for your retirement is a critical part of building a solid financial future -- but that doesn't change the fact that it can be a very confusing process. Here are a few tips and tricks you can use for managing your retirement account.

Take a Risk Assessment

One of the first things many people do when opening their 401(k) is take a personality quiz -- this will give you your investor temperament, telling you how much risk you can withstand when you're investing. Even though high levels of risk can potentially yield better gains, not everyone wants to be put on that emotional rollercoaster. It's always best to invest the way that is right for you. 

Invest in a Targeted Fund

Consider investing your 401(k) in a targeted mutual fund if you don't know much about investments. Targeted mutual funds are mutual funds that are aimed at a specific retirement year; the goal is to keep adjusting your risk and potential profit to be ideal for your current age. These funds are highly diversified and thus they convey relatively low risk when compared to other stock investments. 

Choose Your Investment Allocation

In addition to choosing targeted mutual funds, you can choose your investment allocation directly by investing in funds that follow specific industries. For instance, if you think that the real estate market will be doing well, you can invest directly in a mutual fund that deals with real estate. This is an excellent way to control your investments while still minimizing your risk, as you won't need to balance your own stock portfolio.  

Donate Up to Your Employer Match Amount

Not only should you be maximizing your 401(k) contributions each year, but you should definitely be donating up to the amount that your employer will match. Your employer's matching contribution is essentially free, untaxed money to you, that will grow at the same rate of your account. Just don't forget about vesting. Your employer's money isn't "yours" until you're fully vested; if you leave the company before you're fully vested, they may take it back!

Need more information on how to manage your 401(k) properly? At OneTech we offer qualified employees access to a 401(k) plan with 50% matching employer contribution. Through our 401(k) provider, you can arrange your retirement plan for your family's goals and needs.