How to Manage Your Investments Within a 401(k) Plan

Your 401(k) isn’t just a savings account—it’s also an investment account. The contributions you make are invested in options you choose, and those investments play a key role in how your retirement savings grow over time.

When you contribute to your 401(k), your money is allocated to one or more investment funds. These typically include the following broad categories of mutual funds and ETFs:

• Target date funds (pre-mixed based on your expected retirement year)

• Stock funds (higher risk, higher growth potential)

• Bond funds (more stable, lower return)

• Stable value or money market funds (lowest risk, minimal growth)

Please know that there are many more specific asset categories (geographic - international and emerging markets, company size - small cap versus large cap, value versus growth, etc.) covered in your plan's investment menu, but this list is just a broad example.

You choose where your future contributions go, and you can also move your existing balance between investments.

Investment Transfers

A transfer is when you move money you’ve already saved from one investment fund to another.

For example:

You have $10,000 in a bond fund and decide to move $5,000 into a stock fund—that’s a transfer.

• Transfers affect your existing balance

• They do not change where future contributions go (you’ll need to update those separately if desired)

• Transfers can usually be made at any time through your plan’s website

Rebalancing is the process of adjusting your investment mix to keep it aligned with your goals.

Example:

You initially wanted 70% stocks and 30% bonds. Over time, stock growth shifts your mix to 85% stocks and 15% bonds. Rebalancing moves money back into bonds to restore your original ratio.

Why rebalancing matters:

• Keeps your portfolio aligned with your risk tolerance

• Helps manage investment risk over time

• Avoids being too heavily weighted in one asset class

You can:

• Rebalance manually whenever you choose

• Set up automatic rebalancing (e.g., quarterly or annually) if your plan allows

• Know your risk tolerance: Younger participants may benefit from more stock exposure, while those nearing retirement may prefer stability.

• Don’t try to time the market: Consistent investing and periodic rebalancing usually beat trying to guess market highs and lows.

• Use target date funds if you’re unsure: They automatically adjust your investment mix over time.

• Review annually: Make investment reviews part of your yearly financial check-in.

1. Log into your 401(k) account
   Go to the "Investments" or "Manage Investments" section.

2. Choose your action

   • To move existing funds: select "Transfer" or "Reallocate"

   • To change future contributions: update your "Contribution Elections"

   • To rebalance: look for a “Rebalance Portfolio” option

3. Confirm and review
   You’ll see a confirmation of your changes. Review your updated allocations and save or print for your records.

If you’re unsure how to evaluate investment choices or want help setting up rebalancing, reach out to:

• NestEggs' team of licensed financial advisors are here to help.

• Contact us by phone or email - info@nesteggs401k.com or 866-202-4646