It's Probably Time to Rebalance your 401(k)Submitted by Integras Partners on June 17th, 2016
If you're like most of our clients, your employer retirement account is the last thing you worry about. It's on automatic pilot and over a career is often the best performing account because it stays invested during down cycles and benefits from regular contributions.
But what would happen if you did pay more attention? When was the last time you or your advisor took at look at your 401(k)? Many advisors don't offer this service because they don't get paid on assets in the company plan. If you are still putting money in funds you picked years ago, you're probably overweighted in domestic stock and may want to examine your exposure to traditional bonds in front of potential rising interest rates.
One strategy would be to make your current plan balances more conservative and make your new contributions aggressive. This will help protect the money that you (and your employer) have contributed to the plan and take advantage of any market volatility by dollar-cost averaging with new money. If shares are down, you'll buy more at lower prices! Let us know if we can help.