3 Things to Consider to Make the Most of Your 401(k) Plan

Many of you know that your employer’s 401(k) plan is one of the best places to save for retirement. Because of this you enrolled, and you’ve been contributing, but for some reason you aren't seeing the results you had expected. What could help?

Maximizing your 401(k) plan does take some work. However, you don’t have to take on all of the work yourself. Taking full advantage of your retirement plan features and working with your plan advisor will help you to get the most out of your retirement savings. Here are 3 things you should also consider looking into:

• No investment allocation – Many 401(k) investors end up in the plan’s default investment option (target date fund, money market fund, conservative portfolio) because they have not made an investment election. If this sounds familiar, look at your plan’s investment menu and/or meet with your plan’s investment advisor to determine a selection of investments that best match your risk tolerance.

• Automatic rebalancing - Participants who choose to build their own fund lineup, will realize over time some funds will out perform others. This will result in a portfolio that can be more or less aggressive than you intended. Rebalancing corrects this very thing. Having your account set-up to auto rebalance on a regular basis keeps you from having to do this on your own.

• Maximizing your employer match - Many 401(k) plans offer an employer match to encourage employee participation. This is comparable to getting a raise without having to do anything. Unfortunately, many participants who participate in their employer sponsored 401(k) plan do not contribute enough to receive the full employer match. If you have not done so already, check if your plan offers an employer match. If they do I would encourage you to contribute enough to receive the full match.

It's always best to gain advice from your advisor. As a plan administrator, our role is to educate you on the options out there. The role of the advisor is just that, to give you advice. To learn more about Alliance Benefit Group North Central States, Inc. and the services we provide please visit abgncs.com or email info@abg-mn.com. 

The Author: Seth Holstad

Account Executive

abgncs.com/RetirementAdministration

sholstad@abg-mn.com

Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. Please contact the appropriate parties for those services. Thank you.