The default mutual funds on your company 401(k) retirement plan menu are not the best available mutual funds. Instead, this group of mutual funds has been provided to you as a result of negotiation between your company 401(k) retirement plan sponsor and your company 401(k) retirement plan provider.
You are most likely paying high annual fees for access to a menu under-performing mutual fund options. Don’t continue to accept this random list of mutual funds as the best alternatives available to preserve and growth your retirement assets.
If you had the time and resources, you would be well served to do an in-depth analysis of the investment performance versus the annual costs of each and every company 401(k) retirement plan mutual fund option available to you.
Most individual investors don’t have that kind of time. They also don’t have the resources for that level of mutual fund analysis.
There is a growing list of independent investment advisors who can provide individual company 401(k) retirement plan participants with annual cost and investment performance analysis. These advisors have no affiliation with your company 401(k) retirement plan sponsor or company 401(k) retirement plan provider.
All financial incentives have to be removed in order for individual company 401(k) retirement plan participants to understand which company 401(k) retirement plan mutual fund options cost less and perform the best.
An independent third-party investment advisor is not paid by your company 401(k) retirement plan provider. That advisor is not paid by any company 401(k) retirement plan mutual fund company.
Annual costs and investment performance analysis can take a back seat when stock market prices are near all-time highs and interest rates are near all-time lows. Those conditions will surely change.
Violent and dramatic stock and bond market price movements lie ahead. The preservation and growth of your company 401(k) retirement plan account deserves more attention than what you have given over the last several years.
Seek out independent, third-party analysis. Find the lowest annual expenses and best investment performance on your company 401(k) retirement plan menu.
Ric Lager
Lager & Company, Inc.
