3 Signs You're Not Getting the Most From Your 401(k)

Group 1 - The importance of maximizing 401(k) contributions is emphasized, particularly taking full advantage of employer matching contributions [4][6] - An example illustrates that not utilizing the full employer match can lead to significant losses over time, potentially exceeding $20,000 in gains over 30 years with an 8% return [5] - Strategies to ensure full employer match include cutting spending or taking on additional work to increase contributions [6] Group 2 - Many employees may default to their 401(k) plan's default fund, often a target date fund, which may come with high fees and conservative growth [7][9] - Actively choosing investments, such as an S&P 500 index fund, can provide better growth opportunities and lower fees [8] - The necessity of rebalancing investments as retirement approaches is highlighted, especially for those who choose index funds over target date funds [9]