The 2019 edition of the annual Schwab 401(k) participant survey was recently published. That survey is sponsored by Schwab Retirement Plan Services. This nationwide survey asked questions to 1,000 company 401(k) retirement plan participants.
I picked up several new themes from this study as compared to the results of past studies. One new theme was that individual company 401(k) retirement plan participants are beginning to realize that saving and investing for retirement is a personal responsibility.
All the fancy new technology tools offered by company 401(k) retirement plan providers have finally gotten the attention of individual plan participants. The Schwab study clearly revels that fact that company 401(k) retirement plan participants are beginning to seek investment advice solutions.
About 85% of survey participants responded, “I would be comfortable asking for advice.” And 95% of survey respondents said they would be confident making 401(k) investment decisions if they had help from a financial professional.
With the current U.S. stock volatility, now is a good time to explore your company 401(k) investment advice options.
Individual company 401(k) retirement plan participants have been fortunate. Over the last few years stock market declines have not lasted very long. Each decline was followed with another new all-time stock market high.
The other possible outcome is the next great stock market decline. With that possibility comes a life-changing loss of 25-50% of your company 401(k) account. It has been over ten years since that kind of historical stock market event. The current stock market environment makes the ladder event more likely to happen.
No one can be expected to be an expert in all areas of their business life. A good lawyer, a capable tax advisor, and an insurance professional should all be important members of your “money team.” I would argue that an experienced company 401(k) investment advisor should be part of that same team.
Your company 401(k) retirement plan account is likely one of the biggest pieces of your investment assets. There are independent investment advice professionals who can answer your investment questions about “what to buy.”
More important is an investment management game plan of “when to sell.” There is no reason on earth to continue to ride the stock market roller coaster up and down every few years.
You very likely own expensive and poor-performing mutual funds in your company 401(k) retirement plan account now. It’s not your fault. You don’t have the time, expertise, or inclination to spend enough time to improve your investment management decisions.
A company 401(k) retirement plan investment advice expert can easily rank your current menu of company 401(k) retirement plan mutual funds. Investment performance and annual expenses “jump off the page” if you know where to look.
You deserve the best investment performance at the lowest possible annual costs in your company 401(k) account. Update your current company 401(k) retirement plan investment management strategy that is now.
Ric Lager
Lager & Company, Inc.
