Reviewing your 401(k) plan on an annual basis helps you make sure your plan is on the proper course. Here are three steps to use when reviewing your 401(k) plan:
- Consider your goals -- Keep your financial goals in mind as you review your 401(k) plan. Have you experienced life changes that affect your goals? Has your income or family situation changed?
- Consider your contributions -- If your company offers matching contributions, one of the biggest mistakes you can make is not to contribute enough to take advantage of the full matching amount. As part of your review process, create a detailed annual budget and actively look for ways to contribute more income to your 401(k) plan.
- Consider rebalancing -- Take a look at all your 401(k) plan's investment options and review their historical performance. Compare that to the investments you are invested in, and decide whether any changes are needed.
Please call if you'd like help reviewing your 401(k) plan.