For the majority of us, our retirement hopes hang on our 401(k). In an effort to help you improve awareness and control over your 401(k), I have listed five tips to help you maximize your 401(k)’s performance.

  1. Make sure your contribution is (at a minimum) equal to your employer’s match. By not doing so, you are in no uncertain terms losing out on free money.
  2. Check your plan regularly, even if it hurts. Is the allocation of funds still to your liking, or are some changes necessary? Many plans allow you to make changes throughout the year and not just during open enrollment.
  3. Avoid using your 401(k) for loans. Frequently those who borrow never pay themselves back; don’t rob Peter to pay Paul.
  4. Consolidate: If you have multiple 401(k) accounts, roll your old account balances into a self-directed IRA Rollover, such as Schwab or TD Ameritrade. You will always be better with a self-directed IRA Rollover than ANY employer sponsored 401(k) plan. RFS can help you with this.
  5. If you are able to contribute the maximum amount of $18,000 a year ($24,000 if you’re over 50), then do it. The more you contribute the more comfortable your retirement might be. As a rule of thumb, the tax savings fraction for most taxpayers will be approximately 33%. Your $24,000, 401(k) deposit is an income tax deduction, both Federal and state, and will save most taxpayers about $8,000!

Bonus Tip:  To really make sure you are maximizing your 401(k) give us a call for a FREE, NO OBLIGATION second opinion.

  • Understand the different investment options available to you so you can choose the right options for your specific needs and goals.
  • Know how much risk you are taking on and how you may be able to decrease it.
  • Decipher the fine print so you will know exactly how much you’re paying in fees.
  • Determine how you can save for retirement with more ease and efficiency.

Don’t let your best saving years go by without giving your plan the attention it deserves. To schedule your free second opinion, please give us a call at 217-337-5584 or email me at It’s quick, it’s easy … and the benefits last a lifetime!


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