Successful long-term 401(k) investing is not that hard. Despite what you read or skim over in the financial media.
Consider the source of my statement. I will soon pass 40 years as an investment advisor. Over 25 years providing investment advice to individual 401(k) participants.
I stand by my statement. I help individual investors improve their 401(k) investment management decisions every day. If it were hard to do, I would not be able to do it myself. Or help as many 401(k) individual investors for as long as I have.
Do you play fantasy football? If you don’t, you can at least understand a 30-second explanation of the picking of players for a team. And how the players score points each week.
Then you can understand how to pick the best 401(k) mutual funds to own. All you need is to know “what to buy” in your 401(k).
You need the right tools. Provided by an independent, third-party, fiduciary level investment advisor. Not affiliated with your 401(k) sponsor (your company) or your 401(k) provider (Fidelity, Schwab, Empower, etc.).
Most individual 401(k) investors are overwhelmed with mutual fund terminology. Wall Street globality gook. Intended to keep them fully invested at all times. So 401(k) mutual fund managers can generate the largest amount of annual management fees.
You know the language. Diversification, asset allocation, and dollar cost averaging. All great textbook concepts. None intended to improve your individual 401(k) mutual fund choices.
You don’t need to be a financial expert to pick the best 401(k) mutual funds. Several of my 401(k) advice clients are poor managers of their personal finances.
But they add to their 401(k) every year. Along with the company-matching contributions. We rank all the default 401(k) mutual funds. And take advantage of the self-directed brokerage account (SDBA) if available.
Many of these 401(k) advice clients have built huge 401(k) account balances. The “401(k) millionaires” you read about from time to time.
They are not intimidated by the 401(k) mutual fund selection process. They don’t overthink the investment management dilemma. I don’t let them. Because it is not necessary.
Do you have to be a football expert to pick your fantasy football players each week?
You don’t have to know textbook investment management concepts to pick your best 401(k) mutual funds. And figure out when the stock and bond market risks turn against you.
The best 401(k) mutual funds on your default mutual fund menu are not subjective. They are easily identified. Separated by higher-quality mutual funds in the best asset classes. From lower-quality mutual funds that underperform and are expensive to own.
The preservation and growth of your most important retirement savings account. A 401(k) investment management strategy that can change your life. It has a direct impact on the timing and comfort of your retirement.
Ric Lager
Lager & Company, Inc.
There is no need to continue to guess with your 401(k) mutual funds. All you need is a second opinion. You deserve it.
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