fool.com·Jun 15, 2026
When saving for retirement in a 401(k), it's crucial to avoid common mistakes such as not fully utilizing employer matching contributions, being overly conservative in investment choices, and relying solely on a 401(k) without diversifying into other accounts like IRAs for better growth potential and access to funds.
To optimize your retirement savings, ensure you maximize your employer's 401(k) match to benefit from "free" contributions and consider balancing your portfolio with a reasonable allocation to stocks for potentially higher returns. Additionally, diversify your retirement strategy by also investing in IRAs or taxable accounts to increase flexibility and access a broader range of investment opportunities.