Do you fall into this category of individual 401(k) investor?
(I hope you do. Otherwise, this blog post is a complete waste of your reading time).
Have you ever wondered if you own the best mutual funds offered on your company’s default 401(k) mutual fund menu?
Most individual 401(k) investors I meet with are not sure. In fact, most admit they have no idea. But they want to find out.
Do I own the lowest-cost mutual fund options in my 401(k)?
Do I own the best-performing mutual fund options in my 401(k)?
What changes can I make to improve both categories?
On face value, not difficult questions. But company 401(k) sponsors (your company) will not provide the answers. Neither will your company 401(k) provider (Schwab, Fidelity, Vanguard, etc.).
The answer is a qualified, fiduciary investment adviser. With experience providing investment advice to individual 401(k) participants.
You’ll pay them an annual advisory fee — usually somewhere between 0.5% and 1.0% of your 401(k) account value. The investment advisor provides an independent, third-party analysis. Of your company 401(k) investment options.
A fiduciary investment advisor has daily responsibility. And access to the most sophisticated asset class and mutual fund analytical tools. These tools are too expensive and complicated for most individual 401(k) participants.
The job of the 401(k) advisor is to present the results of their analysis in an easy to understand format. To answer the age-old individual 401(k) investment management question.
“What do I buy in my 401(k)?”
You want to own the default 401(k) mutual funds that have provided solid investment returns. In both up and down stock and bond markets. With the lowest possible annual costs.
A fiduciary 401(k) investment advisor has no products to sell. He or she is not affiliated with your company. Or your company 401(k) provider.
Their fiduciary level of 401(k) investment advice is in your best interests. As a company 401(k) plan participant.
Yes, using a 401(k) investment adviser can increase your total annual 401(k). In most cases, paying an extra 1% will reduce your annual mutual fund expenses. The expense you pay to own some of the worst mutual funds on your default 401(k) menu.
A 401(k) investment advice relationship is a collaborative one. You are not giving full control of your 401(k) investment management decisions to the advisor. Instead, the 401(k) investment advice provides conflict-free mutual fund analysis. To improve your long-term 401(k) investment management decisions.
Your 401(k) investment advisor sits on the same side of the table as you do. Providing a level of 401(k) investment analysis that you wished you had years ago.
A 401(k) second opinion may be worth your time. A full analysis of your current stock and bond risks. To find out once-and-for-all.
How much you are paying for 401(k) mutual fund investment performance over the last few years.
Or in some cases, not received.
I have spent years trying to improve my social media skills. Trying to find the best way to share my 401(k) expertise. Twitter, Facebook, LinkedIn Groups, blogging, etc.
I may have finally figured it out. Nothing beats a well-crafted newsletter delivered to your inbox once a week. With independent, fiduciary-level content specific to your 401(k) investment management decisions.
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