401(k) Account Checkup: A Step-by-Step GuideĀ 

401(k) account checkup

A 401(k) plan is a cornerstone of retirement savings for many Americans, providing a tax-advantaged way to grow your primary savings source. However, it’s not a set-it-and-forget-it situation. Hereā€™s a simple, step-by-step guide to help you perform a 401(k) account checkup.Ā 

Step 1: Gather Your InformationĀ 

Before you start, gather all necessary information:Ā 

  • Your latest 401(k) statement.Ā 
  • Login details for your 401(k) account online portal.Ā 
  • Any relevant financial documents related to your investments.Ā 
  • Log in to your 401(k) account online. If you don’t have an online account, contact your plan administrator to set one up.Ā 

Step 2: Review Your 401(k) Account BalanceĀ 

Check your current account balance. Compare it to previous statements to see how your account has grown over time.Ā 

Step 3: Check Your ContributionsĀ 

Review your contributions to ensure you are maximizing your contributions:Ā 

  • Verify that you are contributing enough to take full advantage of any employer match.Ā 
  • Increase your contributions if your financial situation allows. Use this handy Paycheck Contribution Calculator to determine how much. Ā 
  • Consider consolidating accounts if you have multiple 401(k) plans.Ā 

Step 4: Assess Your PerformanceĀ 

Compare the performance of your investments to benchmarks like the S&P 500.Ā 

  • Asses If your portfolio is on track to meet your goals and if it has performed as well as comparable investments over time.Ā 
  • If your portfolio consistently falls short, you may need to revise your strategy.Ā 

Step 5: Evaluate Your Investment MixĀ 

Check the allocation of your investments:Ā 

  • Ensure your portfolio is diversified across different asset classes (stocks, bonds, and more).Ā 
  • Adjust your allocation if necessary to align with your risk tolerance and retirement goals. Take this Risk Tolerance Quiz to determine your risk profile.Ā 

Step 6: Rebalance Your 401(k) PortfolioĀ 

Rebalancing helps maintain your desired asset allocation:Ā 

  • If your portfolio has drifted from your target allocation, rebalance by buying and selling assets to get back on track.Ā 
  • Leverage Bespoke, a digital advisor that customizes and automatically rebalances your investments to fit your needs. Share your details and Bespoke creates a personalized investment mix based on your age, goals, and risk tolerance.Ā 

Step 7: Check Fees and ExpensesĀ 

Review the fees associated with your 401(k) investments:Ā 

  • High fees can eat into your returns, so look for low-cost investment options.Ā 
  • Compare the expense ratios of your funds with similar funds.Ā 

Step 8: Update BeneficiariesĀ 

Ensure your beneficiary designations are up to date:Ā 

  • Life events such as marriage, divorce, or the birth of a child may require changes to your beneficiaries.Ā 

Step 9: Consult with a Financial AdvisorĀ 

Think about your retirement goals and whether your current plan will help you achieve them. You might want to consult a financial advisor to get a professional opinion.Ā 

  • If you are unsure about any aspect of your 401(k), consult with a financial advisor.Ā 
  • A professional can provide personalized advice tailored to your situation.Ā 

Step 10: Set a Reminder for Your Next 401(k) CheckupĀ 

Regular checkups are key to staying on track. Set a reminder to review your 401(k) at least once a year, or more frequently if needed.Ā 

Performing a 401(k) account checkup doesnā€™t have to be complicated. By following these simple steps, you can ensure that your retirement savings are on the right path. Happy saving!Ā 

Related Articles

Subscribe to the Slavic401k Blog

Be the first to know when new content is available.


 

Language / Accessibility Tools
CLOSE