Every week there is a new survey from a major financial services company.
Last week, Charles Schwab Retirement Plan Services released the results of a recent survey of more than 1000 individual company 401(k) retirement plan participants. Three of the summary points in the survey caught my eye.
First, 89% of the survey respondents stated that they are counting on themselves to fund their own retirement. No surprise there. What other options do they have?
Pension plans have gone the way of the dinosaurs. The vast majority of Minnesota workers manage their individual company 401(k) retirement plan accounts on their own.
Second, 52% of the survey respondents stated that their 401(k) investments were more confusing than their company health care benefits.
These results shocked me. I could not explain my health care plan coverage to save my life. I don’t understand how choosing from a list of mutual funds is more difficult than picking a doctor.
Third, 46% of the survey respondents stated that they did not feel that they knew what their best investment options are in their company 401(k) retirement plan menu.
A large part of my investment advisory business is working with individual company 401(k) retirement plan participants. I don’t think that any individual company 401(k) retirement plan participants should be confused.
There is no reason to stay confused about your company 401(k) plan account. There are resources to help all around you.
If you work with an investment professional, ask him or her to provide an analysis of the mutual fund menu in your company retirement plan account. Your investment professional should be eager to provide that information.
If you manage your Minnesota company 401(k) account on your own, take the time to make sure that you know exactly what you currently own. Review what you own now and make sure that you are comfortable with your level of investment risk.
Interest rates are moving up and the stock market is moving down. The last few weeks have been hard on your company 401(k) investments.
The resources are there for you. Don’t act surprised when you get your next company 401(k) account statement.
Ric Lager
Lager & Company, Inc.
