Its #401kFriday: Don't Set it and Forget it

Happy #401kFriday, everyone! ?? In today's edition of our weekly newsletter, we're diving deep into a topic that's crucial for everyone with a 401(k), but often overlooked: The Importance of Checking In on Your 401(k) From Time to Time.

If you've been treating your 401(k) like a slow-cooking pot roast – set it and forget it – you're not alone. It's a common approach, and let's be honest, life gets busy. However, this hands-off strategy could be silently eroding your retirement dreams, bit by bit. Let's break down why it's time to take a more active role in managing your 401(k).

The Hidden Dangers of "Set It and Forget It"

When you first set up your 401(k), you likely chose an investment allocation that suited your retirement goals and risk tolerance. But here's the kicker: as markets fluctuate, so does the composition of your investments. What was once a well-balanced portfolio can become skewed, exposing you to unnecessary risk or underperformance.

Moreover, many of us are enrolled in our employer's default investment option, typically a target-date fund. While these funds are designed to adjust automatically as you near retirement, they're not personalized to your unique situation. And let's not even get started on the fees that can nibble away at your nest egg!

The Power of Periodic Reviews

So, what's the game plan? It's simple: periodic reviews of your 401(k). By checking in on your account regularly (at least annually), you can:

• Rebalance Your Portfolio: Ensure your investment mix remains aligned with your goals and risk tolerance.
• Assess Performance: Are your investments performing as expected? Could your money be working harder for you elsewhere?
• Minimize Fees: High fees can eat into your returns over time. Knowing what you're paying can help you make cost-effective choices.

FAQ: Your 401(k) Check-Up Guide

Q: How often should I review my 401(k)? A: Aim for at least an annual review, though more frequent check-ins can be beneficial in volatile markets.

Q: What should I look for during a review? A: Check your asset allocation, investment performance, fees, and ensure your 401(k) aligns with your current financial goals.

Q: Can I make changes to my 401(k) anytime? A: Yes, but don't over do it. Checking in and changing are two different things.

Let's Make It Happen!

Here's your #401kFriday challenge: Schedule a time in the next week to review your 401(k). Not sure where to start or what to look for? No problem! I'm here to help. As a financial advisor dedicated to your success, I invite you to reach out for a personalized consultation. Together, we can ensure your 401(k) is on track to meet your retirement goals.

Don't let "out of sight, out of mind" be the mantra for your 401(k). A little attention today can lead to a more prosperous and secure tomorrow. Let's make your 401(k) work as hard for you as you've worked for it.

Until next #401kFriday, stay savvy and keep investing in your future!

Talk soon.

-Nate

P.S. Feel free to share this newsletter with colleagues and friends who might benefit from a 401(k) check-up. Together, we can all look forward to brighter financial futures!