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**( 401(k) Mistakes (and How to Fix Them in a Pinch)**
> *"Your 401(k) is your future — but one misstep today can cost you tomorrow."*
Even smart investors get it wrong when it comes to saving for retirement, and quietly nibble away at their assets. You might be committing one of the following **7 common 401(k) errors** if you've ever wondered why your balance is not growing as you expected. The bright side is that all have a straightforward solution. ????
#### ⚠️ **1. Not Contributing Enough to Get the Full Match**
One of the biggest **401(k) mistakes** is not leaving free money on the table.
**Solution:** Always contribute enough to get your employer's full match — it's a 100% return on investment.
#### ???? **2. Not Paying Attention to Fees and Expense Ratios**
Big fund or administrative fees can quietly deduct from your 401(k) in the long term.
**Solution:** Invest in low-cost index funds or ETFs and review your plan's expense ratios each year.
#### ???? **3. Failing to Rebalance Often**
Your portfolio gradually drifts out of alignment with your goals.
**Solution:** Get automatic rebalancing in your 401(k) at least once a year to maintain your target asset allocation.
#### ⏳ **4. Cashing Out When Changing Jobs**
Perhaps the worst **401(k) mistakes** you can make is cashing out when you switch jobs. Early withdrawals tax and penalize you.
**Solution:** Transfer your 401(k) to your new company's plan or an IRA instead of cashing it out.
#### ???? **5. Taking Too Little (or Too Much) Risk**
Investing too conservatively can stunt growth, while being overly aggressive invites volatility.
**Fix:** Adjust your risk level according to your age and retirement horizon using Fidelity’s or Vanguard’s asset allocation tools.
#### ???? **6. Failing to Increase Contributions Over Time**
If your contributions stay the same year after year, you’re losing ground to inflation.
**Solution:** Increase your 401(k) contribution 1% each year — a small change that pays a big dividend.
#### ???? **7. Overlooking Older 401(k) Accounts**
Most individuals abandon previous accounts upon job changes — another common **401(k) mistake**.
**Solution:** Consolidate your 401(k)s into one plan to simplify management and enjoy more effective investment tracking.
> *"Your 401(k) doesn't grow by accident — it grows by attention."*
Avoiding these **7 typical 401(k) mistakes** will keep your retirement funds secure, your earnings maximized, and you with long-term financial freedom.
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