Ten Tips To A Stronger 401k.

1. DO NOT WAIT!  This is probably the most important of all of the tips on the list.  Saving for retirement is important.  Do not depend on Social Security or that inheritance that you think you may get later.  Take control and prepare for your retirement future.  If your company doesn’t offer a matching program, consider a Roth IRA or Traditional IRA to get started.
2. CONTRIBUTE UP TO THE MATCH.  If your company offers a match, make use of it.  Generally, it makes sense to contribute enough to take advantage of the entire match.  Then consider whether you want additional deferrals for tax purposes or to simply catch-up on your retirement savings.
3. ASK TO SEE THE 401K FEE STRUCTURE.  401k’s are notorious for charging high fees.  Ask your employer how much your 401k fees are.  Is there a plan administration fee?  How much are the mutual fund expenses?  How about individual service fees like transferring investments and loan fees?  Sometimes, all it takes is for a few participants to provoke the employer into looking at a different plan provider.  There are too many good providers out there to be stuck with an awful, more expensive one.
4. DON’T BORROW FROM YOUR 401K.  Remember folks, this is your retirement.  I understand that things come up.  Life happens to all of us at some point.  Although borrowing from a 401k can be fairly painless initially, 401k loans can be a source of considerable troubles later on.  Find another source of assets if possible. Consider your 401k dead bolted and padlocked with no opportunity for access.
5. ROLL ASSETS INTO IRA UPON RETIRING.  Upon leaving your employer at the age of 59½ or older you will most likely want to first consider a direct rollover.  A direct rollover will continue the tax deferral that you are currently receiving on your 401k assets.  As a rule, a self-directed IRA will give you more investment choices than you can find in a 401k.
6. DON’T STOP CONTRIBUTING WHEN MARKETS GET CHOPPY.  Legendary investor Warren Buffet was asked about his enormous financial success.  He replied, “We simply attempt to be fearful when others are greedy and to be greedy when others are fearful.”  His point struck me profoundly. When investments lose value and it gets difficult to open your statement, generally that’s the time to buy.  Try not to focus on what you’ve lost.  Instead focus on how much more you can buy because of discounted prices.  
7. CONSIDER YOUR OPTIONS.  Do you know your investment options?  There may be funds available to you that you didn’t realize you had, and they may fit better in your portfolio than ones you are currently using.  Know what is available to you.  How about your level of 401k contributions?  Maybe your household income has advanced to the point where you can defer more than in the past.  What if your marginal tax rate has gone up to a point where tax-reducing deferrals make more sense now than when you first signed up?
8. UNDERSTAND YOUR RISK.  If you are within a few years of your target retirement age, now is the time to scale back the risk in your 401k. Significant market losses just before retirement should be unacceptable.  There is little worse than making weekly contributions for 30 to 40 years just to see much of it evaporate immediately before you retire.  When nearing retirement, the question to ask yourself is this, “Which would really affect your life more, adding 50% to your retirement assets or, losing 50% of your retirement assets?”
9. BE PATIENT.  You are your greatest creator of wealth.  Not your 401k, not your IRA.  Even with the best 401k tips at your disposal, don’t expect too much.  Don’t get frustrated.  Successful individuals live within their means.  They contribute to their future and their children’s future.  They do the little things and have patience trusting that those little things may grow into bigger things.
10. HIRE 401kFundAdvice.com.  For $19.95 per month, you will get your money’s worth, and then some.  Beginning portfolio construction.  Quarterly portfolio recommendations.  Annual re-balancing as necessary.  Your future depends on where you go from here.