3 Mistakes 401k Investors May Not Realize They Are Making Right Now

Here are the top 3 401(k) mistakes investors may not realize they’re making right now. Subscribe to our channel: https://bit.ly/2BXTM06 Read this post online: https://bit.ly/3f83sUH Visit our site: https://bit.ly/3eSyTSJ Subscribe to our 401k blog: https://bit.ly/31Q2EQx We invite you to check out our no-cost 401(k) Masterclass Videos here: https://bit.ly/2ZwbKPu In just a few minutes, you’ll discover 3 strategies that may... ● Improve Your Account Performance - Have more money, creating a fulfilling retirement. ● Manage Risk to Minimize Losses during the Bad Markets - Keep more of what you have made. ● Reduce Fees That Harm Account Performance - So more of your investment grows for your retirement. This Masterclass could change the direction of your retirement future. Let's get started... 3 401(k) Mistakes Investors May Not Realize They’re Making Right Now Here are the top 3 401(k) mistakes investors may not realize they’re making right now. #1 Assuming Your Employer Is Taking Care of Your 401(k) for You One 401(k) mistake investors may not realize they’re making right now is the assumption that their employer is taking care of their 401(k). Whether it’s a past employer or a current one, employers cannot--by law--manage your 401(k) for you. It’s up to you to make sure you know what’s going on with your 401(k) investments. After all, it’s your money and your financial future. At 401(k) Maneuver, we hear from a lot of people that no one ever spoke with them about their plan. They are mailed a packet when they enroll, and are left on their own to figure it out. The result is that many investors assume their company is taking care of their 401(k) for them. This belief not only disconnects you from your money, but it also potentially keeps you from maximizing your 401(k) retirement savings. It’s not uncommon for an employer to automatically enroll investors in a target date fund, give them the plan welcome packet, and send them on their merry way. Target Date Fund PDF Download: https://bit.ly/31Rw4h0 In fact, Marketwatch reports, “About 70% of U.S. companies automatically enroll employees into 401(k)-type plans, and more than 86% of these firms now direct people’s money by default into ‘target-date funds’ (TDFs).” Our advice is simple: get engaged with your 401(k) right now. Become an engaged investor. Watch our 401(k) Masterclass Videos where we walk you through the 3 strategies that may supercharge your 401(k) performance: https://bit.ly/2ZwbKPu #2 Not Contributing to Your 401(k) Right Now With recent market volatility and economic uncertainty caused by the COVID-19 virus, many 401(k) investors are asking if they should stop their 401(k) contributions right now and stash cash. The economy was strong, unemployment was at historical levels, companies were doing extremely well, and then suddenly it all stopped. The fear of losing money and seeing balances go down is a valid concern. But moving money to cash is a 401(k) mistake investors may not realize they’re making right now. Stopping or reducing your 401(k) contributions right now may not be in your best interest in the long run. While things are uncertain right now, there is a silver lining in all of this: 100% of the time, every market correction--every bear market--has always come back 100% of the time, and there's no reason to think this time will be any different. Check out this video where Chief Investment Officer at 401(k) Maneuver, Mark Sorensen, explains what’s happening in the markets, why you should be patient, and why you should be excited. https://vimeo.com/402625352 #3 Failing to Make Changes to Your 401(k) Investments Contrary to what some investors believe, a 401(k) plan is not a “set it and forget it” program. Because of this, few people rebalance their 401(k) accounts, and even those who do fail to manage risk through proper asset allocation. In fact, 80% of 401(k) investors fail to rebalance.² Failing to rebalance is a 401(k) mistake investors may not realize they’re making right now. If you aren’t rebalancing your account allocations, you may be missing out on earning more and keeping more of your hard-earned retirement savings. Why? Because unmanaged allocations may experience much larger losses in down markets and may miss the opportunity for growth during good markets. Link to Rebalancing vs Asset Allocation pdf: https://bit.ly/304U3qN Morningstar conducted a study that monitored the top 100 best-performing mutual funds between January 1, 1998, and December 31, 2013. This study revealed that, in any given year of top best-performing 100 mutual funds in any of those years, in the next year, about half of the time, 8 out of 100 remained in the top 100 the very next year.³ This is why a set-it-and-forget-it strategy is not always advantageous. We recommend rebalancing your account allocations every quarter, or four times a year. This way, you can stay on course with your savings goals.