“Don’t stress, Dad.” I hear that from one or both of my teenagers once a day.
Last August, Charles Schwab released a national survey of 1000 company 401(k) retirement plan participants. A partial list of the survey results is listed below.
89% of survey respondents said that they are counting on themselves for the money to support their retirement.
61% of survey respondents said that their 401(k) is their only or largest source of retirement savings.
52% of survey respondents said that they found their 401(k) investments more confusing than explanations of their health care benefits.
57% of survey respondents wished there was an easier way to figure out how to choose the right 401(k) investments.
46% of survey respondents said that they don’t feel they know what their best investment options are.
34% of survey respondents said that they felt a lot of stress over correctly allocating their company 401(k) retirement plan dollars.
Can you relate to any of the survey results listed above?
The source of the majority of investor stress listed above can be easily relieved. All that an individual company 401(k) retirement plan participant needs is a little bit of knowledge of investment advice resources.
Most 401(k) plans offer some type of professional advice option. These resources are usually internet based. Some of them include the opportunity to talk to a real live person.
The Schwab survey respondents also stated that 61% want personalized investment advice for their 401(k).
There is a growing number of independent, third-party investment advisors who provide company 401(k) retirement plan investment management advice.
Look for an investment advisor who acts in the best interest of the individual company 401(k) retirement plan participant client. Their investment advisory fees are based on how well their investment advice performs. The key word to look for in any investment advisor relationship is fiduciary.
Your current investment professional may be of help. If not, find an independent advisor who can help you make better investment decisions in your company 401(k) retirement plan.
Don’t stress your company 401(k). There are too many experienced and qualified resources available. Improved 401(k) investment results can become part of your busy life.
Ric Lager
Lager & Company, Inc.
