How to Get the Most Out of Your 401(k)

Saving for retirement is one thing. Making the most of your workplace retirement plan is another. This week on *Money Sense*, Jamie Williams, CFP®, Wealth Advisor at Ellenbecker Investment Group, is joined by Jean Range, Senior Wealth Advisor at EIG, for an in-depth discussion on how to maximize the value of a 401(k). From employer matching contributions and investment selection to Roth versus pre-tax contributions, they break down the key decisions that can significantly impact long-term retirement success. Together, Jamie and Jean explore common mistakes employees make with their retirement plans, the importance of starting early, how to navigate market volatility, and why your 401(k) should be viewed as part of your overall financial picture. They also discuss retirement distribution strategies, beneficiary designations, and the role professional guidance can play throughout every stage of your retirement journey. **Episode Highlights:** **0:26** | Introduction to 401(k)s and why understanding your retirement plan matters **2:08** | Defined contribution plans versus traditional pension plans and how retirement has evolved **3:10** | Why 401(k)s have become a cornerstone of retirement planning **3:46** | The power of starting early and maximizing your employer match **4:51** | Understanding vesting schedules and what happens to employer contributions when you change jobs **5:43** | Dollar-cost averaging and how consistent contributions can benefit long-term investors **7:15** | Common 401(k) mistakes, including pausing contributions and failing to review investments **7:45** | Auto-enrollment and how employers are helping employees save more effectively **8:53** | The time value of money and the significant advantage of starting young **10:24** | The "latte factor" and how small spending decisions can impact long-term savings **11:57** | Navigating investment options and avoiding common allocation mistakes **12:35** | Understanding target-date funds and how they work **14:39** | Market volatility, emotional investing, and the dangers of trying to time the market **16:27** | When target-date funds may be appropriate and when investors may benefit from more customized allocations **18:54** | Why contributing enough to your 401(k) should be a top financial priority **19:21** | Roth 401(k) versus traditional pre-tax contributions and how to evaluate the right fit **20:49** | How tax planning influences retirement savings decisions **22:01** | 2026 contribution limits, catch-up contributions, and new opportunities for older savers **23:55** | Viewing your 401(k) as part of your total investment portfolio **25:34** | How comprehensive financial planning goes beyond investment management **26:14** | The risks of remaining in stable value funds and being overly conservative **27:29** | The importance of diversification and managing portfolio risk **28:24** | Rebalancing strategies and how often you should review your 401(k) **29:18** | Aligning your investment allocation with your risk tolerance and retirement timeline **30:07** | What to do when your employer changes 401(k) providers **30:50** | A common misconception: your 401(k) provider is not selecting investments for you **32:29** | Additional retirement plan mistakes to avoid **32:51** | Transitioning from saving for retirement to spending in retirement **33:20** | Evaluating whether to keep assets in a former employer's plan or roll them over **34:25** | Direct rollovers and preserving tax advantages during retirement transitions **35:08** | Why beneficiary designations may be more important than your estate plan **36:00** | Converting retirement savings into a sustainable retirement income strategy **36:49** | Hidden tax implications of retirement distributions, including effects on Medicare and Social Security **37:44** | Understanding fees and expenses within retirement accounts **38:20** | The value of personalized retirement planning and fiduciary advice **39:22** | Educational opportunities for employers and retirement plan participants **39:57** | Solo 401(k)s and retirement planning options for self-employed individuals and business owners **40:30** | Final thoughts on maximizing retirement plan benefits and building long-term financial security **ELLENBECKER INVESTMENT GROUP** Presenter of the *Money Sense Podcast*. Ellenbecker Investment Group (EIG), a registered investment advisor, provides comprehensive financial planning and fiduciary wealth management services for individuals, families, businesses, and charitable organizations. EIG's planning-first approach helps clients align their financial decisions with their values, goals, and long-term vision for the future. **Website:** ellenbecker.com *This podcast is for educational purposes only and should not be considered legal, tax, or financial advice. Guest opinions represent the views of the individuals speaking and do not necessarily reflect the views of Ellenbecker Investment Group. Before making financial, tax, retirement, or investment decisions, consult with qualified professionals familiar with your individual circumstances.*