If you have a 401(k) plan, you are familiar with the benefits afforded by these popular retirement accounts. They are a great way to set aside pre-tax earnings and enjoy tax-deferred investments that can grow handsomely over the years, especially if your employer matches your contributions.But what will happen to that nest egg if you leave your company to take another job? Maybe little or nothing at all, if you transfer the money to another qualified plan.
The best way to keep your 401(k) account on track is to make sure your contributions are invested according to your asset allocation target.Rebalancing is an important investment management tool available to 401(k) plan participants to help ensure that they have enough retirement assets.When you rebalance periodically you should only have to make modest adjustments.Although the primary objective of rebalancing is risk control, it does not have to mean a significant reduction in return.
