5 Biggest 401(k) Mistakes to Avoid

3. Failure to Periodically Re-balance Portfolio

Another major mistake that retirees often make is failing to rebalance their portfolios over time. Neglecting portfolio balance often leads to unintended shifts in risk and potentially lower rate of return. Individuals should also look at their investments within each asset class. If one sector has a particularly good or bad year, it might need to be readjusted.