The Top 401(k) Mistakes
401(k) plans meet the needs of today's investors who want control, choice and flexibility in saving for retirement. But with that comes responsibility and the need to make wise choices. The Principal Financial Group®, the nation's 401(k) leader*, offers this list of common mistakes made by 401(k) investors.
- Not participating.
- Not participating up to an employer match.
- Starting too late.
- Failing to diversify investments.
- Reacting emotionally to swings in the stock market.
- Investing based on "cocktail party" advice.
- Not taking enough investment risk.
- Taking too much risk.
- Market timing.
- Chasing yesterday's hot funds.
- Failing to plan.
- Planning using unrealistically high investment return assumptions.
- Taking loans without repaying.
- Cashing in the 401(k) after a job change or before retirement.
- Underestimating living expenses during retirement.
- Failing to investigate payout and income management options for retirement.
Please attribute these points to the Principal Financial Group.
For additional information or to arrange an interview with a 401(k) expert from The Principal®, please contact Susan Houser, 515.248.2268, houser.susan@principal.com or Terri Shell, 515.283.8858, shell.terri@principal.com.
*The Principal ranks number one in total plans for all asset sizes among fully bundled 401(k) providers-2006 Spectrem Group analysis of fully-bundled 401(k) providers (companies that provide both administrative and investment services).
