Most of the individual company retirement plan participants that I meet with in Minnesota don’t have time to watch their company retirement plan accounts, like their 401k account at work.
Life gets in the way of these Minnesota 401k participants from becoming professional money managers who monitor their largest investment assets. Kids, school, church, work, charities, and family, all play a role in taking time away from them watching the money that is supposed to support their retirement.
Right now, most company retirement plan participants don’t know that the investment management strategy that they routinely follow in their company retirement plan account is broken. It is not only broken, is it is costing them tens of thousands of dollars because it is broken.
To buy-and-hold the money in your company retirement plan account is to fly in the face of how the investment world works today. The investment management world of today manages risk and keeps principal safe when volatility increases.
What investment have you ever owned in your investment lifetime that you have been able to buy-and-hold? You don’t need to think any more than the values of your homes and cars to come up with the answer to that question.
A long-time client of mine calls the buy-and-hold company retirement plan investment strategy that he used to follow the “buy-and-hope” investment strategy. He jokes that he used to put as much money in his company retirement plan that he could afford every year, and hope he had as much money as he needed to retire.
Ric Lager
Lager & Company, Inc.
Minnesota Investment Advisor
