Your 401(k) Is Not a Set-It-and-Forget-It Account

For many Americans, a 401(k) is the cornerstone of their retirement plan. Contributions are deducted automatically, investments are selected during enrollment, and years can pass without another thought. That kind of automation is convenient, but it can also create a false sense of security. A 401(k) is not a slow cooker that takes care of itself. It is a living part of your financial life that deserves regular attention.

Your Life Changes, and Your 401(k) Should Change Too

When you first enrolled in your plan, the choices you made were based on who you were at that moment. Maybe you were single, just starting your career, and focused on growth. Ten years later you might have a family, a mortgage, and very different priorities. If your account still reflects the mindset of the younger version of you, it may no longer match your real goals.

Major life events should trigger a review. Marriage, children, a new job, or caring for aging parents can all change how much risk you are comfortable taking and how much you need to save. Even positive milestones like a raise or a bonus deserve attention. Increasing contributions when income grows is one of the simplest ways to strengthen long-term results.

The Investment Menu Deserves a Second Look

Most plans offer a mix of stock funds, bond funds, and target date options. Many participants pick something on the first day and never return. Markets, however, do not stand still. A fund that looked appropriate years ago may now carry more risk than you realize. Company stock, sector funds, or aggressive growth options can become a larger portion of your balance simply because they performed well.

Rebalancing brings your account back in line with your intended strategy. It is a disciplined way to sell high and buy low without guessing the market. Even target date funds, which are designed to adjust automatically, should be reviewed to be sure the glide path matches your personal timeline and comfort level.

Contributions Matter More Than You Think

Investment performance gets most of the attention, yet contribution rates often have a bigger impact on retirement readiness. Many people stop at the company match and assume that is enough. For some, it may be, but for many it leaves a gap between the lifestyle they want and the savings they will have.

A practical rule is to increase contributions by at least one percent each year or whenever pay increases. Small adjustments made consistently can add up to meaningful differences over decades. If your plan offers a Roth option, it may also be worth considering how a mix of pre-tax and after-tax savings fits into your broader tax picture.

Don’t Leave Old 401(k)s Behind*

Changing jobs often means leaving a trail of former retirement accounts. Those old 401(k)s can become scattered, outdated, and disconnected from your overall strategy. Rolling them into a single, professionally managed account can simplify your financial life and make it easier to monitor performance, risk, and progress toward your goals.

A rollover also allows you to choose investments that better fit your current objectives rather than being limited to a former employer’s menu. Consolidation can reduce confusion, help with coordinated rebalancing, and ensure that all of your retirement dollars are working together instead of drifting in different directions.

*When you leave a job or retire, you have a decision to make regarding your 401(k) money. While leaving those assets in the former employer's plan is an option, a rollover can be a consideration. Working with your tax advisor, we can help you determine the right course of action for you. This may include: leaving the funds in your existing plan, if permitted, or rolling them into your new employer's plan, if one is available and rollovers are permitted. Each choice offers advantages and disadvantages, depending on your specific needs and retirement plan, such as the desired investment options and services, applicable fees, expenses, and withdrawal options, as well as required minimum distributions and tax treatment of applicable options.

Connect the Account to Your Real Goals

A 401(k) statement shows balances and percentages, but it does not show the life those dollars are meant to support. Translating savings into future income can make decisions clearer. Ask questions such as how much monthly income your current balance might provide, or whether you are on track to retire when you hope.

Working with a financial professional can help connect this single account to the rest of your plan, including Social Security, pensions, and other investments. The goal is not constant trading, but thoughtful adjustments that keep your savings aligned with the future you want to create.

Take the Next Step

Treat your 401(k) like an important member of your financial team, not a box you checked years ago. Schedule a regular review, confirm your contributions, examine your investments, and make changes when life calls for them. A little attention today can help turn your retirement vision into a confident reality tomorrow.