Millions of Americans are contributing to a 401(k) plan, and if you are one of them, this article can be of interest. If you want to know more about these plans, you may find out that it helps if you make your initial investment choices and change them after when you think it’s necessary.

In order to maximize your 401(k), you first need to read about the types of investments offered, which one suits you best, and how to manage the account. For many people, a 401(k) plan is the main retirement savings source, so it’s best to make sure you know how to get the most out of it.

1. Pay your debt – Getting out of debt is the best next thing you need to do: if you pay all of it, you can free up your biggest tool in building your wealth: your income.
2. Have an emergency fund – If you don’t have already an emergency fund, and something bad happens, you’ll be obliged to use your 401(k) as an emergency fund. This won’t lead to anything good.
3. Save a little every day – You shouldn’t completely change your lifestyle, but imagine that cup of coffee you’re drinking every day adds up to $650 a year.
4. Work with a professional – Hiring a professional to guide you in your decisions is the best thing to do.
5. Avoid using a computer system for investing – Computers should be used to track your investment plan, but never to determine your plan.
6. Get your full employer match – Even more important than paying down your debt is to match your 401(k) plan with your employer.
7. Make sure you make the most out of it – For people over 50, a personal finance author recommends contributing $2,000/month, instead of calculating a percentage of your gross income.
8. Use your 401(k) plan resources – There are many 401(k) plans that can offer you help, like investment advice or account management from a third-party financial professional.
9. Rebalance your portfolio from time to time – It’s highly important to have a diverse range of investments that fit your purposes and risk tolerance.
10. Address 401(k) from previous jobs – You might have old 401(k) from previous jobs, so find out what you need to do to address them.
11. Review your beneficiaries – If you had a major life change, like a divorce or the death of a loved one, you need to review and update your 401(k) beneficiary designations.
12. Use a retirement calculator – Stats are showing how 18% of calculators users increased their contributions after using them, and 37 % of employees who had nothing saved started contributing after using a retirement calculator.

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