Chances are you've heard of a 401(k) plan. It's one of the simplest, most effective ways to build wealth and prepare for retirement.
If your employer offers one, you're may well be enrolled in it. But there's a big difference between enrolling in your 401(k) plan and actually understanding how to use it most effectively.
Sure, signing up is a good start, but it's "not enough," says personal finance expert Suze Orman. "No gold stars for that," she writes on Money.
It's important to actually understand how the retirement plan works: how the money is invested, if your employer offers a Roth option and if you're getting the highest match you can.