• Revenue Cycle Management
  • COVID-19
  • Reimbursement
  • Diabetes Awareness Month
  • Risk Management
  • Patient Retention
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • Practice Efficiency
  • Finance and Wealth
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Practice Growth
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

Rebalancing a 401(k) that you've ignored

Article

I began contributing to my employer's 401(k) plan years ago but haven't looked at it since, except to check the current balance. I know I should do more to make sure the plan's on target. What should I consider?

I began contributing to my employer's 401(k) plan years ago but haven't looked at it since, except to check the current balance. I know I should do more to make sure the plan's on target. What should I consider?

At least once each year it's wise to review your asset allocation-the ratio of stocks to bonds and the amounts in different asset classes (such as small-company stocks, large company stocks, international investments, long-term versus short-term bonds) within those broad categories. Make sure you're still comfortable with the overall distribution. Maybe you originally decided to keep 80 percent of your assets in stocks, for instance, but now that you're closer to retirement you'd prefer a 60-40 split.

Once you're comfortable that the overall plan is appropriate for you, make sure the holdings in your 401(k) actually match it. If your goal is to keep 60 percent of your portfolio in stocks but because of market growth spurts those now make up 75 percent of your holdings, you'll need to transfer some shares from your equity funds into bond funds or other offerings to restore your desired balance.

Send your money management questions to: MMQA Editor, Medical Economics, 123 Tice Blvd., Woodcliff Lake, NJ 07677-7664, or send an e-mail to memoney@advanstar.com (please include your regular postal address).

Related Videos