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Maximizing Your 401(k) with One Bridge Wealth Management, St. Louis Financial Advisors
Planning for retirement is a cornerstone of financial security, and a 401(k) plan is a powerful tool to help individuals achieve their long-term savings goals. At One Bridge Wealth Management, St. Louis Financial Advisors, we understand the importance of maximizing the potential of your 401(k) plan to secure a comfortable retirement. In this article, we'll explore four key strategies to unlock 401(k) success and set yourself up for a prosperous future.
1. Maximize Employer Contributions:
One of the most significant advantages of a 401(k) plan is employer matching contributions. Take full advantage of this benefit by contributing enough to your 401(k) to receive the maximum employer match. This is essentially free money that can significantly boost your retirement savings over time. At One Bridge Wealth Management, we work with our clients to optimize their contribution levels to maximize employer matching contributions and accelerate their retirement savings.
2. Diversify Your Investment Portfolio and Focus on Fees and Expense Ratios:
Diversification is key to mitigating risk with the goal of maximizing returns in your 401(k) plan. Instead of putting all your eggs in one basket, diversify your investment portfolio across different asset classes, such as stocks, bonds, and mutual funds. At One Bridge Wealth Management, our team of experienced financial advisors can help you design a well-balanced investment portfolio tailored to your risk tolerance, time horizon, and retirement goals. By diversifying your investments, you can reduce the impact of market volatility and position yourself for long-term growth. You should also ensure you are not invested in high fee funds that reduce your overall performance.
3. Regularly Review and Rebalance Your Portfolio:
It's essential to regularly review and rebalance your 401(k) portfolio to ensure it remains aligned with your investment objectives. Market fluctuations and changes in your personal circumstances may affect the composition of your portfolio over time. At One Bridge Wealth Management, we provide ongoing portfolio monitoring and rebalancing services to keep your investments on track. Our proactive approach helps ensures that your 401(k) portfolio continues to reflect your evolving financial goals and risk tolerance.
4. Take Advantage of Catch-Up Contributions:
For individuals aged 50 and older, catch-up contributions allow you to make additional contributions to your 401(k) plan beyond the standard annual limits. Taking advantage of catch-up contributions can help boost your retirement savings in the final years leading up to retirement. At One Bridge Wealth Management, we help our clients maximize their retirement savings by exploring all available contribution options, including catch-up contributions. Our goal is to ensure that you're taking full advantage of every opportunity to enhance your retirement nest egg.
When is the Right Time to Rollover a 401(k)?
Rolloving a 401(k) into an Individual Retirement Account (IRA) may be appropriate when changing jobs or retiring. This allows for more investment options and potentially lower fees, giving you greater control over your retirement savings.
The Benefits of a Roth 401(k):
A Roth 401(k) offers tax-free withdrawals in retirement, making it an attractive option for individuals who anticipate being in a higher tax bracket during retirement. Contributions are made with after-tax dollars, but qualified withdrawals, including earnings, are tax-free, providing tax diversification in retirement.
In conclusion, a well-managed 401(k) plan is a powerful tool for building long-term wealth and achieving financial security in retirement. By following these four key strategies and considering the right time to rollover a 401(k) or the benefits of a Roth 401(k), you can unlock 401(k) success and set yourself up for a prosperous future. At One Bridge Wealth Management, St. Louis Financial Advisors, we're here to help you navigate the complexities of retirement planning and make informed decisions about your financial future.
*Diversification does not assure a profit or protect against loss in declining markets, and diversification cannot guarantee that any objective or goal will be achieved.