401(k) Planning

Are You Making the Most of Your Retirement Savings?

For many Americans, a 401(k) is their largest investment outside of their home. Yet surprisingly few people know whether they're invested appropriately, paying unnecessary fees, or taking full advantage of the opportunities available to them.

At AMFG Wealth Management, we believe your 401(k) should be more than just an account you contribute to every payday. It should be an important part of a comprehensive retirement strategy.

What Is a 401(k)?

A 401(k) is an employer-sponsored retirement plan that allows employees to save for retirement on a tax-advantaged basis. Contributions may be made on a pre-tax or Roth basis, depending on your employer's plan.

Many employers also offer matching contributions, making the 401(k) one of the most valuable employee benefits available.

Common 401(k) Mistakes

Many participants unintentionally make mistakes that can affect their long-term retirement success.

• Some of the most common include:
• Never increasing contribution percentages
• Remaining invested in default target-date funds without reviewing alternatives
• Paying higher-than-necessary investment expenses
• Having an investment allocation that no longer matches retirement goals
• Forgetting about old 401(k) accounts from previous employers
• Failing to review beneficiary designations

Regular reviews can help identify these issues before they become costly.

Should You Roll Over an Old 401(k)?

When changing jobs or retiring, many people leave retirement accounts behind with former employers.

Depending on your circumstances, rolling an old 401(k) into an IRA may provide benefits such as:

• Greater investment flexibility
• Easier account management
• Potentially broader planning opportunities
• Simplified beneficiary planning
• Consolidation of multiple retirement accounts

However, every situation is different. Factors such as fees, investment options, creditor protection, and future withdrawal needs should all be considered before making a decision.

Are You Paying Too Much in Fees?

Many investors are unaware of the fees inside their retirement plans.

While fees may appear small, even modest differences can reduce retirement savings over time.

A professional review can help determine:

• Investment expenses
• Administrative fees
• Available lower-cost alternatives
• Whether your investments align with your objectives

Is Your Investment Allocation Appropriate?

As retirement approaches, your investment strategy often needs to evolve.

Questions to consider include:

• Is your portfolio taking more risk than necessary?
• Are you diversified across multiple asset classes?
• Are you positioned to generate retirement income?
• Does your investment strategy reflect your current goals rather than where you were 20 years ago?

Your allocation should be reviewed periodically rather than simply “set and forgotten.”

Approaching Retirement?

Your 401(k) becomes even more important during the years leading up to retirement.

Planning opportunities may include:

• Retirement income planning
• Social Security coordination
• Required Minimum Distribution (RMD) strategies
• Roth conversion analysis
• Tax-efficient withdrawal planning
• Medicare income considerations

These decisions often work together and should be evaluated as part of an overall retirement plan.

Business Owners and 401(k) Plans

If you own a business, your company’s retirement plan can be an important tool for both employee retention and your own retirement savings.

Periodic plan reviews can help evaluate:

• Investment performance
• Participant engagement
• Fee competitiveness
• Fiduciary responsibilities
• Plan design
• Benchmarking against similar plans

Employers who regularly review their plans often gain valuable insights into costs and participant outcomes.

Why Professional Guidance Matters

Retirement planning is about more than selecting investments.

A comprehensive review considers your:

• Retirement goals
• Risk tolerance
• Tax situation
• Income needs
• Estate planning objectives
• Overall financial picture

A well-managed retirement strategy can help provide confidence as you work toward your long-term financial goals.

Schedule a Complimentary 401(k) Review

Whether you’re still working, changing jobs, approaching retirement, or already retired, reviewing your 401(k) may help uncover opportunities to improve your retirement strategy.

At AMFG Wealth Management, we help individuals, families, and business owners make informed retirement planning decisions through personalized financial guidance.

If you’d like a complimentary review of your 401(k), retirement accounts, or overall retirement strategy, contact AMFG Wealth Management today to schedule a consultation.

Frequently Asked Questions

Can I have more than one 401(k)?

Yes. Many people accumulate multiple 401(k) accounts after changing employers. In some cases, consolidating accounts may simplify management.

Should I roll my 401(k) into an IRA?

It depends on your goals, investment options, fees, and financial situation. A rollover should be evaluated carefully before making a decision.

How often should I review my 401(k)?

At least annually and whenever you experience a major life event such as changing jobs, retiring, getting married, or nearing retirement.

What happens to my 401(k) when I retire?

You generally have several options, including leaving assets in the employer plan (if permitted), rolling them to an IRA, moving them to a new employer’s plan, or taking distributions. Each option has advantages and considerations.

How much should I contribute to my 401(k)?

The appropriate amount depends on your retirement goals, income, employer match, and overall financial situation. At a minimum, many people aim to contribute enough to receive the full employer match.