Optimal use of your plan requires you to actively manage your account, including your investment mix and contribution strategies. As you approach retirement, investing in pre-tax or post-tax dollars is a particularly important decision. Periodic rebalancing is also crucial to maintaining your chosen asset allocation. If your plan offers automatic rebalancing, taking advantage can help you avoid making errors.

For asset preservation and income generation, many pre-retirees adjust their portfolios by reducing equity allocations and increasing fixed income and guaranteed return products. Monitoring your progress toward your retirement savings goals is also an important step. Doing so may prompt necessary actions like catch-up contributions after age 50.

Managing your 401(k) retirement funds becomes more complex when it needs to generate retirement income. IRA rollovers, for example, can offer greater flexibility and control for some. Annuities can also provide lifetime income guarantees.*

Generally, borrowing money from your 401(k) isn’t advisable as it can jeopardize your money’s long-term growth. Early withdrawals before age 59 ½ can lead to significant taxes and penalties.

Johnson Brunetti can help guide you in optimizing your 401(k). We use a holistic planning approach that considers your overall financial picture and goals. Our team provides tailored recommendations based on your needs and our experience. We’ve helped thousands of clients who depend on their plan for retirement savings and income.

We’re here to help you make informed decisions throughout your plan’s life. Together, we’ll review your account performance, investment choices, allocation balancing, and tax-efficient income strategies. As you near retirement, we’ll help you evaluate options like Roth IRA conversions, IRA rollovers, and annuities. We use our expertise to simplify these processes, saving time and improving performance.