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Saving in your 401(k) can be an easy and painless way to build your retirement savings. But because it’s so easy and painless, it can also be easy to ignore for long periods of time, which often leads to mistakes.
In this episode, we’ll cover at least the top 5 mistakes people make in their 401(k)s. You’ll want to avoid these in order to maximize your savings during your working career because when that paycheck stops coming in, this will likely be the primary source for your income in retirement. The good thing is your potential mistakes don’t have to be permanent so check and see if any changes need to be made within your plan.
Here’s some of what you’ll learn in this episode:
- Why you should always take advantage of the company match. (3:57)
- Don’t assume a target date fund provides you with a customized solution for your needs. (7:26)
- Too many people fail to rebalance their portfolios often enough. (12:01)
- The 401(k) plan doesn’t view you as the client. Your company is their client. (14:53)
- Why you shouldn’t automatically leave your money in a former employer’s 401(k) account. (19:19)
Thanks for checking out this episode of the podcast. If you’d like to learn more about financial and retirement planning, check out our YouTube channel here.