401(k) Fundamentals: What You Need to Know
January 29, 2026 •
Welcome back to the Dollar Wise Podcast. In this episode, Brett Herron, CFP® is joined by Valentina Lucchetti-Gallo, HFM’s Marketing & Events Coordinator, for a candid Q&A on one of the most frequently asked-about financial tools: the 401(k). Brett addresses common questions about contributions, taxes, investment options, retirement timelines, and employer matches. Whether you’re just starting your career or eyeing retirement, this episode offers practical answers to help you better understand and manage your 401(k) plan.
Tune into this episode to also learn:
● How Roth vs. Traditional 401(k) contributions impact your taxes
● The importance of risk tolerance and how it guides investment selection
● What actually happens to your 401(k) when you retire
● How employer matches and vesting schedules work
What we discussed
● [00:01:27] What a 401(k) is and why it’s a foundational retirement savings tool
● [00:02:17] How much you should contribute and how your goals affect that number
● [00:03:22] Can you access your 401(k) money before retirement—and should you?
● [00:05:25] Roth vs. Pre-tax contributions and their long-term tax implications
● [00:08:47] Choosing investments based on risk tolerance and age
● [00:12:14] What happens if the market crashes when you’re ready to retire
● [00:14:24] How to know if you have enough money to retire
● [00:17:14] What physically happens to your 401(k) when you retire
● [00:19:26] Rolling over an old 401(k) into a new plan or IRA
● [00:20:43] Understanding employer matches and vesting schedules
3 Things To Remember
- Your 401(k) is just one piece of your financial plan—contribution decisions should be based on your individual goals.
- Pre-tax and Roth 401(k) contributions offer different tax advantages depending on when you pay taxes—know which is best for you.
- Understand your employer’s vesting schedule to ensure you don’t leave potential retirement savings on the table.
Memorable moments:
(00:03:22) “Can you? Depends on the plan rules for each 401(k), but the answer is often in some way, yes.”
(00:08:47) “Knowing your own risk tolerance is a huge step one.”
(00:21:13) “So it’s free money. Free raise. Free money. You don’t often hear free money.”
Useful Links
Connect with Brett Herron: bherron@hfmadvisors.com | LinkedIn
Connect with Valentina Lucchetti-Gallo: vlucchetti@hfmadvisors.com | LinkedIn
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HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.
