The 401(k): The Slow Cooker of Retirement Accounts
Set It, Forget It, Retire Happy
If you've ever thrown dinner into a slow cooker and come back to a warm, comforting meal six hours later, you already understand the magic of a 401(k). It’s the set-it-and-forget-it classic of retirement savings—quietly working in the background while you live your life, raise your babies, and forget what day it is.
Let’s break down how this powerful mom-friendly retirement tool works—and why your future self will thank you for using it.
What Is a 401(k)? And What Are 403(b)s, 457s, and TSPs?
These are all employer-sponsored retirement accounts, and while the numbers sound like robot names, they all function similarly:
You contribute straight from your paycheck, automatically
Your contributions can be invested in things like stocks and bonds
There’s a yearly contribution limit
Some employers offer a match—aka free money—and you never want to leave that on the table
Depending on your job, you might see different names:
401(k): Private sector jobs
403(b): Public school teachers, non-profits
457: Government employees
TSP (Thrift Savings Plan): Federal employees and military
And if you’re self-employed, don’t feel left out—there’s a Solo 401(k) option with similar perks.
What Can You Invest In?
Here’s where things get fun (and yes, we’re still talking retirement):
Many employers offer Target Date Funds—pre-mixed investment options designed for your expected retirement year. For example, if you’re planning to retire around 2045, you might choose a Vanguard Target Retirement 2045 Fund. It’ll start aggressive with more stocks and gradually shift toward more bonds as you get older. It rebalances itself automatically—one less thing for you to manage between carpool and work calls.
If Target Date Funds aren’t available—or you like more control—you can create your own 3-fund portfolio:
U.S. Total Stock Market Index Fund
International Stock Index Fund
U.S. Bond Index Fund
Keep it simple, keep it low-cost, and let it grow.
So, which one should you choose?
Choose Traditional if you want to reduce your taxable income now and keep your take-home pay higher.
Choose Roth if you believe your income (or tax rates) will be higher in the future and want tax-free withdrawals in retirement.
Still undecided? You can actually contribute to both in the same year—as long as you don’t exceed the combined annual contribution limit.
What Does Sarah Do?
Glad you asked! I personally contribute to a Roth 401(k). Why? Because I expect my income to go up over time, and I’d rather pay taxes now than later—especially if tax rates increase in the future. The idea of tax-free income in retirement is basically my adult version of finding a forgotten Target gift card.
Mom Brain Recap
401(k), 403(b), 457, and TSP = employer retirement accounts that help you invest straight from your paycheck.
Many employers offer a match—don’t leave that free money behind.
Target Date Funds are great low-effort options; or build a 3-fund portfolio if you want more control.
Traditional = pre-tax now, taxed later. Roth = taxed now, tax-free later.
You can contribute to both in the same year (just stay under the limit).
Like a slow cooker, your 401(k) works quietly in the background—just set it, check in once in a while, and let it cook.