401ks are meant to recruit, reward and retain employees.  After their paycheck and health insurance, employees usually rank their 401k as their most important reason for working at their company.

Here are 5 common mistakes you can easily avoid. 

Ignoring the plan investments.

Even with the Department of Labor, fiduciary roles are being pushed aside.  As the trustee of the plan, you have a fiduciary responsibility to make sure that proper investments are being offered to your employees.  Multiple lawsuits have been filed in the last few years in this area demonstrating the need for attention and care.  Ignore at your peril.

Not meeting with your plan’s advisor.

At least twice a year, and preferably quarterly, you should meet with your advisor.  You should set and follow a compliance calendar to ensure that all the administrator’s requirements are being followed by the record-keeper, third-party administrator, custodian and most importantly, you.

Late contributions

Not making employer contributions investment on an immediate basis according to the plan, makes employees have a lack of confidence and trust in the employer.  They can potentially miss out on a market gain which can set you up for one of those pesky 401k lawsuits.  The best option is to automate the process.

Missing the plan’s 5500 tax return filing date: among other deadlines.

401k plans have lots of deadlines.  The different parties to the plan, recordkeeper, TPA, and investment advisor all have different deadlines throughout the year.  Even though it is technically their responsibility to follow and meet the different deadlines, at the end of the day the buck stops with you.  Set reminders in your calendar to remind you of what needs to be done when.

Not updating employee notices and not sending them to the employees.

Some examples Annual Safe Harbor Notice, Summary Plan Description, and any changes to the investments.
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Matching Your Risk and Return: A Personalized Approach for Maximizing Your Financial Success
At Rubin Wealth Advisors, we believe that understanding your risk tolerance is the key to maximizing your financial potential. Traditional methods of categorizing risk with vague labels like conservative, moderate, or aggressive often lead to confusion. These terms can mean entirely different things to different people, which creates misalignment between your expectations and your investment strategy. That’s where problems can arise—and where opportunities can be missed.
 
We take a different approach. By using a precise, quantitative system to determine your Risk Number, we help you make informed decisions that directly benefit you. Your Risk Number is more than just a score; it’s a powerful tool that helps guide your financial strategy. If your Risk Number is 64, for example, both you and our team will know exactly what level of risk that involves and how it relates to potential returns. The guesswork is gone, replaced by clarity and confidence.
 
Here’s where it really benefits you: Understanding your Risk Number not only ensures that your portfolio is aligned with your comfort zone, but it also increases your chances of achieving a higher risk-adjusted rate of return over time. By matching your investments to your specific risk profile, you’re better positioned to optimize returns without taking on unnecessary risk—especially over a 3-5 year period, where market fluctuations can test even the most seasoned investor.
 
The process is simple and designed to serve your best interests. In just a few minutes, we’ll walk through a short conversation to determine your Risk Number. From there, we’ll craft an investment portfolio tailored specifically to you, ensuring that the level of risk is appropriate for your goals. This isn’t about avoiding risk entirely; it’s about taking on the right amount of risk so you can achieve the returns you need while remaining confident in your strategy.
 
By aligning your portfolio with your Risk Number, you gain the peace of mind to handle market volatility. You’ll know exactly how much downside risk is possible and what kind of upside you can expect. For example, a portfolio with a Risk Number of 64 might have a potential downside of -10% over six months but offers a possible 15% gain. This range helps you stay calm during downturns because you’ve already accounted for them, and it positions you to benefit when the market performs well.
 
We also stress-test your portfolio in various market conditions—such as economic downturns or inflation spikes—to ensure you’re always prepared. This proactive approach ensures your investments stay aligned with your risk tolerance, giving you the best chance for success regardless of what happens in the markets.
 
How does this benefit you? Managing risk properly allows you to maximize returns without exposing yourself to more risk than necessary. Over time, this careful balance increases the likelihood that you’ll achieve your financial goals—whether that’s building wealth, preparing for retirement, or preserving your assets.
 
At Rubin Wealth Advisors, a Boca Raton financial advisor, we’re committed to helping you achieve higher risk-adjusted returns. As a licensed fiduciary, we specialize in guiding clients through personalized wealth management strategies, ensuring your investments align with your long-term goals. Let’s work together to discover your Risk Number and build a strategy that sets you up for success over the next 3-5 years and beyond. Contact us today to get started.