Broker Check

Manage My 401k

9 Common 401(k) Mistakes

  1. Not Signing up
  2. Not taking advantage of full company match
  3. Taking too much risk
  4. Not taking enough risk
  5. Not understanding whether you should be doing pretax or Roth 401k
  6. Looking at last year’s winners to pick where to invest
  7. Cashing it out when you leave your company
  8. Leaving it behind at your old company when you leave
  9. Not understanding the investment choices you have

Getting Help

Advice matters when saving for your retirement. According to a study done, people who sought help managing their 401(k) enjoyed a median annual return almost 3% higher than those who didn’t—even after fees they paid for that advice.*

The study found that people who didn’t get help suffered from several mistakes: Inappropriate risk levels, inefficient portfolios, and they misunderstood market volatility.

*According to the study of eight large 401(k) plans with more than 723,000 participants and $55 billion in assets, by Aon Hewitt, a consulting firm, and Financial Engines, an investment advisory firm. Past performance does not guarantee future results.

How an Advisor can help

Many 401k participants just utilize the default investment choice in their plan or use a Target Date Fund. When planning for your retirement, do you want an investment strategy that is designed for the “Average Participant” or do you want a strategy that is designed for you.

Does your 401(k) plan offer a Self-Directed Brokerage account(SDBA)? This option is offered in many 401(k), although most participants don’t know it is available. This option allows you to invest outside of the standard menu of investment options. This gives us the opportunity to design a plan for you.

I can help you create a strategy that is designed for you to meet your goals and objectives. I will coordinate this strategy to include all your assets. This will give you more confidence in how you can reach your financial goals. After we build your plan, I will help you keep track of everything using aggregation software, which allows you to track all your accounts in one place.