A dry cleaner, a lawn care company, and the person who cuts your hair.
All in the service business.
Individual 401(k) investment advice falls into the same category.
A service provider solves a simple life problem.
A solution to a life problem not solved on your own.
I would not last very long trying to do your job.
My guess is that you don’t have much experience analyzing 401(k) mutual funds.
Such is the world we live in of expertise.
Your 401(k) retirement plan menu of mutual fund options are a confusing mess.
Strange names. Incomplete descriptions. Huge gaps of missing information.
Your most important retirement savings account is at risk.
No big deal!
The cost of owning any 401(k) mutual fund is a good place to start.
Recent 401(k) lawsuits have done a good job of pressuring mutual fund fees lower.
The bad news is the target date mutual funds are the most popular 401(k) choices.
And those mutual funds are usually the most expensive to own.
The second question is annual investment performance.
Are you getting the annual investment performance for which you are paying?
Annual cost and “getting what you pay for.”
The two most important reasons to pay for the service of 401(k) investment advice.
These two reasons are important investment managmeent considerations.
Due to the fact that the majority of 401(k) participants invest in the U.S. stock market at all times.
This fact maximizes the amount of investment fees paid to their mutual funds.
Your annual investment performance is at risk.
To the toller coaster ride the U.S. stock markets have become.
The first rule of investing for retirement is to keep the money that you already have. The preservation of your 401(k) is your biggest investment management problem.
Online questionnaires never ask the most important 401(k) management question.
How much risk you are willing to take with your stock market investments?
How many 401(k) investors understand the questions?
Or take the time to answer the questions in the first place?
Don’t understand the questions. Don’t take time to respond.
Not a good combination for managing your 401(k) mutual funds.
Risk management requires the help of an independent, third-party investment advisor. An advisor not affiliated with your 401(k) provider (your company) or your 401(k) sponsor (Fidelity, Schwab, Vanguards, etc.).
Investment advice for your 401(k) is easy to justify.
It’s like life, home, or auto insurance.
A necessary expense.
To protect you from a potential 401(k) disaster that could take you years to recover.
There is no need to continue to guess with your 401(k) mutual funds.
All you need is a second opinion. You deserve it.
Reach out to me on LinkedIn. Or comment below.
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