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How Often Should You Review Your 401(k) To Maximize Returns?

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Published May 30, 2025

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Two older adults focused on paperwork and a laptop on a table — Americans migh🌄t check their bank balance multiple times a week but 🌸review their 401(k) rarely—an approach that could cost tens of thousands in retirement.
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Many people believe in having a "set it and forget it" approach to their 401(k)s, but market fluctuations and life events can quickly disrupt your portfolio. While you don't need to check your 401(k) balance like many check social media, periodic reviews can help ensure you're 澳洲幸运5官ꦿ方开奖结果体彩网:maxim﷽izing gains on your way to retirement.

Below, we take you through how often you need to review your 401(k).

Key Takeaways

Annual 401(k) reviews are the minimum standard, but quarterly check-ins during volatile markets can protect and improve your returns.
The best times to review are during 澳洲幸运5官方开奖结果体彩网:major life changes, market shifts, and when your 澳洲幸运5官方开奖结果体彩网:employer updates plan options or matching policies.

Why "Set It and Forget It" Can Hurt Your Returns

There are certainly downsides to checking your 401(k) too frequently—stressing over every up and down of the market—but it's also the case that markets don't run on annual cycles, and neither should your retirement strategy.

There's no precise approach that works for everyone since each of us has a different 澳洲幸运5官方开奖结果体彩网:investing personality. "It’s all about figuring out what works for you—as an individual with unique preferences, 澳洲幸运5官方开奖结果体彩网:risk tolerance, and emotional reactions," Yvan Byeajee, author of , told Investopedia. "Some people are more comfortable with steady, long-term plays...while others prefer 澳洲幸运5官方开奖结果体彩网:active, short-term trading."

Most 401(k) investors need more than annual check-ins. Market 澳洲幸运5官方开奖结果体彩网:volatility and changes in employer benefits might require 澳洲幸运5官方开奖结果体彩网:rebalancing. Financial experts often ꦗrecommend a 🧜tiered approach:

Monthly contribution checks: Review your contribution rate monthly during the first year after any salary change, promotion, or bonus.
Quarterly deep dives: Every three months, examine your 澳洲幸运5官方开奖结果体彩网:asset allocation against your target percentages. Market moves can skew your carefully planned portfolio balance. If your stock allocation has grown from 70% to 85% because of market gains, you're taking on more risk than intended.
Annual reviews: Use these for a big-picture analysis—澳洲幸运5官方开奖结果体彩网:evaluate investment options, update beneficiaries, compare fees, and check plan contributions.

When Life Changes Demand Attention

Certain 澳洲幸运5官方开奖结果体彩网:life events like marriage, divorce, the birth of children, job changes, and inheritance all create reasons to 澳洲幸运5官方开奖结果体彩网:reassess your 401(k).

For example, when you get a new job, you're not just choosing between 澳洲幸运5官方开奖结果体彩网:rolling over your old 401(k) or leaving it behind—you're evaluating two different investment universes. Compare 澳洲幸运5官方开奖结果体彩网:expense ratios, investment options, and employe෴r matching formulas. Sometimes, the old plan offers better investment choices; at other times, the new plan prov༺ides superior benefits.

Getting married could mean coordinating your retirement. Divorce requires updating beneficiaries and reassessing risk toleranc🀅e. The birth of a child often means reducing your risk exposure while increasing life insurance. 𝓰With new expenses for the baby, many parents are tempted to slash their 401(k) contributions, but that could mean missing out on the compound growth until contributions go back up again.

Many employers periodically update their 401(k) offerings, adding lower-cost index funds or improving matching formulas. Similarly, changes in your income or tax situation might make 澳洲幸运5官方开奖结果体彩网:Roth 401(k) contributions more worthwhile than traditional pre-tax🐽 cont🦋ributions.

Market Timing vs. Strategic Positioning

While attempting to time the market with your 401(k) generally backfires, strategic positioning based on market conditions can improve returns. During particularly volatile periods, more frequent reviews can help keep your portfolio in line with your risk tolerance. That said, it's important to remember that 401(k)s are meant for 澳洲幸运5官方开奖结果体彩网:long-term buy-and-hold strategies.

"Buy and hold until you reach your 澳洲幸运5官方开奖结果体彩网:financial goals rather than trying to time the market," advises , a behavioral finance researcher and certified financial pl✅aౠnner at Mariner Wealth Advisors.

Tip

Your 401(k) platform might offer 澳洲幸运5官方开奖结果体彩网:automated features that reduce the need for manual reviews by 澳洲幸运5官方开奖结果体彩网:rebalancing your holdings for you. But you'll still need to check in personally to ensure your allocat♔ions fit your risk tolerance and financial goals.

The Bottom Line

The best schedule for reviewing your 401(k) isn't set in stone since it needs to be adaptive. Quarterly reviews during the years you're accumulating funds, plus trigger-based reviews for life changes, can help you maximize your retirement wealth while protecting against unnecessary risks.

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