What are some common mistakes people make with their 401k?



There are a few common mistakes that people make when it comes to their 401k. The first mistake is not contributing enough to the 401k. The 401k is one of the best retirement savings plans available, but it only works if you contribute enough to it. The second mistake is not diversifying your investments. You should make sure that your 401k is diversified so that you are not too heavily invested in one particular stock or bond. The third mistake is not rebalancing your portfolio. As your investments increase in value, you will need to rebalance your portfolio to maintain your desired asset allocation. The fourth mistake is taking too much risk. You should only invest in stocks and other investments that you are comfortable with. The fifth mistake is not staying invested. When the stock market goes down, it can be tempting to cash out your investments, but you should resist this urge. The market will eventually rebound and you don’t want to miss out on the gains.



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What are some common mistakes people make with their 401k?

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How do I know how my 401k is performing?

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What are the tax consequences of withdrawing money from my 401k?

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