Have a financial strategy
One crucial financial strategy when it comes to your 401(k) is consistent evaluation and rebalancing of your investment portfolio.
By consistently evaluating your account you will be able to determine if your investment choices are yielding the best results for you. You’ll also be able to see how minor adjustments can maximize the overall performance of your portfolio.
Additionally, a regular evaluation will help you better understand what steps need to be taken to protect your current savings and how to reach your ultimate retirement savings goals.
In addition to regularly assessing the performance of your individual investments, it’s important to look at the risk tolerance of your overall portfolio.
Most financial advisers agree if you’re close to retirement age, your portfolio should be made up of mostly medium to low-risk investments. Conversely, younger investors should have a more aggressive portfolio.