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.