What To Do When Your 401(k) Reaches $300K, According to a CFP

Core Insights - Reaching a $300,000 balance in a 401(k) is a significant milestone that can greatly influence long-term retirement readiness [1][4] - The power of compounding becomes more pronounced once a 401(k) reaches around $300,000, allowing savers to potentially earn more in a good year than they contribute [2][3] Financial Discipline - Achieving this savings milestone indicates strong financial discipline and the importance of maintaining good saving habits [3][4] - It often takes 10 years or more to reach this goal, highlighting the necessity of consistent contributions and market performance [4] Investment Strategy - Investors should focus on their time horizon rather than just a specific dollar amount, especially if they are within five years of retirement [5] - A risk assessment is recommended to determine appropriate asset allocation tailored to individual goals [5] - Developing a diversification strategy is crucial as balances grow, particularly to avoid excessive holdings in company stock [6]