Rebalance Constantly

You might have the skills of a banker and invest in all the right things but if you don’t rebalance your account constantly, you’re not doing your 401(k) any favors. That’s because, in time, certain parts of your account will outperform while others will underperform, making your asset allocation go haywire. If you hold on to an out-of-balance allocation, your account will no longer be in tune with your investment objectives and risk tolerance and your overexposure to stocks will increase when the next sell-off occurs.

“The sooner you take care of adjusting your 401(k) allocation according to your retirement goals and risk tolerance, the better,” said Jon Vlachogiannis, founder of AgentRisk.