I’ve seen countless individuals make costly mistakes with their 401(k) plans. I’ll outline some of the most common mistakes and provide alternative strategies

As a Chartered Financial Analyst ( CFA ) with over 20 years of experience in finance, including managing Investment Risk and Investment Product Teams , I’ve seen countless individuals make costly mistakes with their 401(k) plans.

A 401(K) is a powerful tool for building retirement wealth, but many people fail to optimize its potential.

I'll outline some of the most common mistakes and provide alternative strategies to help you.

Some investors make the mistake of equally weighting their four O 1K portfolio across different funds without considering the underlying asset allocation.

Instead of equal weighting, focus on creating a diversified portfolio that reflects your risk tolerance and investment horizon.

Avoid taking loans from your 401 K unless it's an absolute last resort.

Pay close attention to the expense ratios of the funds in your 4O1K.

Your 4O1 K is one of the most important tools for securing a comfortable retirement.

By understanding and addressing these mistakes, you can maximize your four O 1 KS potential.

Implementing the alternative strategies outlined here will help ensure that your retirement savings grow efficiently and effectively over time.