Your Minnesota company retirement plan provider is obligated by law to offer and review annually your company retirement plan mutual fund options. Your company makes every effort to provide retirement plan mutual fund options that are “good for you.”
Your company hires outside experts and an experienced qualified company retirement plan provider in order to offer a fixed menu of mutual funds to retirement plan participants. Much care and detail are involved to design a retirement plan menu that prevents participants from making a catastrophic investment mistake.
No retirement plan consultant or company retirement plan provider wants to get into legal trouble in regard to a company 401(k) retirement plan account they designed and offered to company employees.
Contrast that to the financial hopes and dreams of individual company retirement plan participants. These investors want the piece of mind that goes along with access to a menu of investment options that allow them to both preserve and grow their company retirement plan account principal.
This situation is just like the one that your parents explained to you when you were growing up. Your company retirement plan sponsor wants what is best for you.
Unfortunately in the investment world, what is best for you is never good for you.
Access to only the oldest, largest, and most basic mutual fund options in your company retirement plan is best for the long-term preservation and growth of your company retirement plan account. But you need more in order to successfully manage your company retirement plan account over the next few years.
If you don’t have a stock market risk-management game plan in place, you will continue to ride the stock market roller coaster up-and-down over the next few years.
“Buy-and-Hold” has not worked so far in the investment management of your company retirement plan account. I have serious doubts that fact is not going to change before you quit working.
You have what is best for your company retirement plan now. The missing piece is a good stock market risk-management game plan to along with it.
Ric Lager
Lager & Company, Inc.
