Retirement saving requires key decisions: when to start, how much to save, and where to invest. The investing decision has drawn more attention as government regulators work to open 401(k) plans to alternative assets such as private market investments. Below, we compare the paths of two hypothetical retirement savers and their outcomes.

A tale of two retirement savers

Laura and JR are two 25-year-olds newly employed at the same company, in the same role.

Step 1: Deciding to Save

On her first day at work, Laura committed 10% of her $75,000 salary to her 401(k). That earned her company’s 3% annual match (it matches 50% up to 6%), and 13% in total savings. She still had room in her budget for weekends filled with activities. JR was more worried about now. Rather than putting money into a

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