Millions of American investors. Have the largest part of their stock and bond market investments in their 401(k).
The bad news is the most individual 401(k) investors have no idea “what to buy” on their default retirement plan menu. One mutual fund looks the same as another. Confusion would be a polite description of their dilemma.
Have you ever thought about engaging with a fiduciary investment advisor?
To make more logical, disciplined, and organized 401(k) mutual fund choices. To preserve and grow the value of your annual 401(k) contributions. And company-matching 401(k) contributions.
Independent, third party, fiduciary investment advice. Easy to provide knowledge and experience. Here are some of the main talking points.
The first investment management decision is picking a mutual fund asset class. Large, mid, and small cap. Value, growth, and blend. These nine asset classes categorize all stock market mutual fund options.
Add in international equities. And some level of fixed income. Last, a money market account option.
Each mutual fund option on your default 401(k) menu falls into a single asset class. And those asset classes ranked by investment performance. And filtered by annual costs.
Do you play fantasy football? Most likely, you at least understand how to pick players from a large pool. Based on independent analysis and statistics.
You pick the best available players for your fantasy football team. You can use the same method to pick the best mutual funds for your 401(k).
There is an annual cost for 401(k) investment advice. Make sure that cost can more than justify their annual fee.
Here is an especially important 401(k) investment advice fact. A fiduciary investment advisor has no affiliation with your 401(k) plan sponsor. Your company. Or your 401(k) plan provider (Fidelity, Schwab, Empower, etc.).
There are no commissions paid to receive 401(k) advice. Only 401(k) mutual fund investment advice in your best interest.
You might need help with your current 401(k) mutual fund choices. Consider a one-time meeting with an investment advisor. A second opinion on your 401(k) is often a valuable use of your time.
A thorough review of your default 401(k) mutual fund menu. And those mutual funds you currently own. This review can answer the 401(k) advice question once-and-for-all.
You might not need help picking your 401(k) mutual funds. Or with the investment management decisions when stocks go down and interest rates go up.
You don’t know the real answer. Until you get a 401(k) second opinion.
Ric Lager
Lager & Company, Inc.
I have spent the last several years trying to figure out the best way to share my 401(k) advice content. I have tried Twitter, Facebook, company web site, and LinkedIn Groups. I now realize nothing beats a well-crafted newsletter delivered to your inbox once a week.
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