10 Tips to a Better 401(k) Investment Strategy
By: Tim P. Miller, AIF, CIMA |Published October 20, 2026
Tim Miller is a partner at BenchMark Financial Advisors with over 30 years of wealth management and investment experience.
https://www.benchmarkfa.com/team/timothy-p-miller-cima-aif
A comfortable retirement starts with making the most of your working years — and a thoughtful 401(k) strategy is one of the clearest ways to do it. Here are ten habits worth building.
1. Start on day one. Even a small early contribution has decades to compound. $25 a month at 23 has far more time to grow than a much larger amount contributed at age 50.
2. Maximize any employer match. A match is effectively free money for your retirement — leaving it unclaimed is one of the more common, and avoidable, missed opportunities.
3. Increase contributions as your income grows. It's easy to set a percentage early on and forget to revisit it. Raises and windfalls are natural moments to put more away.
4. Understand the tax benefit. Pre-tax contributions lower your taxable income now, and you'll likely be in a lower bracket when you withdraw in retirement — a real, two-sided benefit.
5. Wait until you're vested. Leaving a job before you're fully vested can mean forfeiting part of your employer’s match. Know your vesting timeline before you decide when to move on.
6. Roll over, don't cash out. Cashing out a 401(k) when you change jobs carries steep tax penalties. Rolling it into a new plan or an IRA protects what you've built.
7. Diversify.While conservative strategies prioritize capital preservation, a diversified portfolio tailored across asset classes can offer higher long-term growth potential—alongside higher volatility. As you build your strategy, consider that concentrated positions, like company stock exceeding 10% of your portfolio, can significantly increase your risk exposure.
8. Watch the fees. Small recurring fees add up over decades. Review them whenever your plan changes, and don't let unnecessary costs quietly erode your nest egg.
9. Think long-term. Market swings are normal. Reacting to every dip tends to hurt more than it helps — steady, disciplined growth wins out over knee-jerk decisions.
10. Revisit your strategy every year. Life changes — a paid-off car, a shift in your other investments — should prompt a fresh look at what you're contributing and where.
These are 10 ways to prepare for retirement. There are lots of things to consider and the US Department of Labor has a good list too.
A 401(k) rewards consistency more than perfect timing. Building these habits now is one of the most direct ways to shape the retirement you're working for.
The information provided is for educational and informational purposes only. Concurrent Investment Advisors, LLC, d/b/a Benchmark Financial Advisors, does not provide legal or tax advice. Please consult with your attorney, accountant, or tax advisor based on your individual circumstances.
Diversification and asset allocation do not ensure a profit or guarantee against loss. Concentrated stock positions carry higher volatility and risk of capital loss than diversified portfolios. Past performance is no guarantee of future results. Consult a financial professional regarding your specific situation before making investment decisions