Quantel Pulse

Are You Reviewing Your Retirement Account? Most People Aren’t — And It’s Costing Them

Written by Irman Singh | Jul 9, 2025 4:25:19 PM

 When it comes to retirement planning, “set it and forget it” is one of the most common—and costly—mistakes people make. Many Americans open a 401(k), IRA, or Roth IRA early in their careers, make a few initial choices, and then never revisit them. Over time, this lack of attention can lead to underperforming portfolios, missed tax advantages, and a retirement plan that falls short of your goals.

The Hidden Cost of Neglect

A recent study by Vanguard found that nearly half of retirement account holders rarely review or adjust their investments. Many don’t increase their contributions, rebalance their portfolios, or take advantage of changing market conditions.

The result?

  • Missed growth opportunities - Every dollar left uninvested or improperly allocated is a missed chance for compound growth. Whether you're sitting on too much cash, holding outdated funds, or failing to increase your contributions over time, you're missing out on the powerful force of time in the market. Even modest annual growth adds up — especially over 20 or 30 years. Not capturing market gains today means less retirement income.

  • Inefficient asset allocation - Your portfolio's mix of stocks, bonds, and other assets should reflect your age, risk tolerance, and goals. But most people set their allocation once and never revisit it. Over time, that can mean:
    • Being too aggressive close to retirement, exposing your savings to unnecessary risk

    • Or being too conservative too early, sacrificing long-term growth potential

    • Or failing to diversify, increasing vulnerability to sector-specific downturns

           Without rebalancing, your portfolio may drift far from its intended strategy—quietly undermining your retirement goals.

  • Higher taxes in retirement - Tax planning is a critical but often overlooked part of retirement strategy. If you don't plan withdrawals wisely or diversify account types (e.g., traditional IRA, Roth IRA, taxable brokerage), you could end up paying significantly more in taxes during retirement.

    Missed opportunities include:

    • Roth conversions at lower tax brackets.

    • Strategic withdrawal sequencing to avoid Medicare surcharges.

    • Delaying RMDs (Required Minimum Distributions) when possible through smart planning.

         Without tax-efficient strategies, a larger portion of your savings could go to the IRS rather than to your future self.

  • Potential shortfalls in retirement income - Ultimately, the biggest risk is this:you may simply not have enough to retire comfortably. Missed contributions, poor investment decisions, or inadequate growth can all add up to a retirement income gap. You might:

    • Need to work longer than planned.

    • Reduce your lifestyle in retirement.

    • Or outlive your savings, increasing financial stress in later years.

    A well-managed retirement account is designed to support you — not just survive, but thrive in your retirement years.

 

Why People Miss These Opportunities

Many savers assume that once they’ve set up their account, the hard part is done. But retirement planning isn’t a one-time decision — it’s an ongoing strategy.

Common reasons accounts underperform:

  • Lack of time to review and research

  • Fear of making the wrong choice

  • Not understanding investment options

  • Avoidance of fees (even if expert help could generate greater net returns)

 

Why Reviewing Your Retirement Account Matters

Just like your health or career, your financial future requires ongoing checkups. Reviewing your retirement account allows you to:

  1. Adjust investments as your life changes - As your personal and financial circumstances evolve, so should your investment strategy
     
    • A new job might come with different retirement benefits (e.g., 401(k), 403(b)) that require consolidating or rolling over accounts.

    • Marriage often brings dual incomes, new shared goals, or the need to rebalance risk across households.

    • Having children might change your time horizon for saving, increase your need for financial flexibility, or trigger goals like college funding alongside retirement.

    • As you approach retirement, capital preservation becomes more important than aggressive growth—requiring a shift toward bonds or income-producing investments.

 
  1. Rebalance your portfolio to stay aligned with your risk tolerance - Over time, market fluctuations can lead to your asset allocation to drift away from your intended target.

       Why it matters:

    • If stocks outperform, your portfolio may become overly risky.

    • If bonds or cash dominate due to market fear, your growth potential could shrink.

    • Rebalancing helps lock in gains from outperforming assets and reinvest them into underweighted areas—buy low, sell high in practice.

       What reviewing helps you do:

    • Reset your stock/bond/cash ratio based on your current age, goals, and risk appetite.

    • Avoid emotional decision-making during market highs or lows.

    • Maintain consistent performance and reduce volatility over time.

    • Optimize for taxes with Roth conversions, contribution strategies, or tax-loss harvesting.

    • Maximize contributions and employer matches.

    • Plan withdrawals efficiently as retirement nears.

 

  1. Optimize for Taxes with Roth Conversions, Contribution Strategies, or Tax-Loss Harvesting

     Retirement accounts are tax-advantaged, but they need active management to stay tax-efficient—especially as income levels and laws change.

      What it helps you do:

    • Roth conversions: Move money from a traditional IRA/401(k) into a Roth IRA during low-income years to pay less tax now and enjoy tax-free growth later.

    • Contribution strategy: Contribute to traditional accounts when you're in a high tax bracket and to Roth when you're in a lower one.

    • Tax-loss harvesting (in taxable accounts): Sell losing investments to offset capital gains and reduce tax liability.

      Example: A strategic Roth conversion at age 60 before RMDs begin at 73 can lower future taxable income and reduce Medicare surcharges.

 

  1. Maximize Contributions and Employer Matches

  One of the simplest yet most effective ways to grow your retirement savings is by maxing out contributions and capturing employer matches.

  Why it matters:

    • IRS contribution limits increase over time—you may be eligible to contribute more than you did last year.

    • Many people forget to adjust their contribution percentage when they get a raise.

    • Employer matches are essentially “free money” for your retirement—leaving them on the table is a major lost opportunity.

 

What reviewing helps you do:

    • Confirm you're contributing enough to get the full match.

    • Automatically increase contributions annually (many plans offer this feature).

    • Use catch-up contributions if you're age 50 or older (extra $7,500 in 401(k)s as of 2025).

 Example: Not contributing enough to get a 5% match from your employer could cost you over $100,000 over your career.

 

  1. Plan Withdrawals Efficiently as Retirement Nears

 As you approach retirement, your strategy must shift from accumulation to distribution. Reviewing your account helps prepare you to draw income tax-   efficiently, safely, and sustainably.

What it helps you do:

    • Build a withdrawal strategy that minimizes taxes (e.g., blend withdrawals from Roth, traditional, and taxable accounts).

    • Avoid penalties by understanding RMD rules (currently beginning at age 73).

    • Set up systematic withdrawals to replace your paycheck.

    • Prepare for health care, long-term care, and lifestyle costs.

Example: Without planning, you could withdraw from a traditional IRA in a high-tax year instead of pulling tax-free from a Roth account—resulting in thousands lost to taxes.

 

Financial Advisor Can Help You Grow Your Retirement Account

A qualified financial advisor doesn't just pick investments—they build a personalized retirement strategy. Here's how they can help:

  • Goal-Based Planning - They’ll align your portfolio with your timeline, income needs, and lifestyle goals.

  • Strategic Rebalancing - Advisors monitor market trends and help rebalance your account regularly to maintain growth potential while managing risk.

  • Tax Efficiency - From Roth strategies to capital gains planning, advisors help reduce your tax burden now and in retirement.

  •  Behavioral Coaching - Advisors provide guidance to help you stay on track during volatile markets—avoiding emotional decisions that hurt long-term growth.

  • Holistic Wealth Planning - They consider all aspects of your finances—estate planning, insurance, debt, and more—to build a cohesive financial plan.

 

It’s Never Too Late to Take Control

If you haven’t reviewed your retirement account in a while, you’re not alone—but now is the time to take action. Working with a financial advisor can provide clarity, strategy, and peace of mind.

At Quantel we have a boutique of services catering to your every need, helping you manage your financials goals aligned to your risk appetite.