In the last three years ending in 2012, almost 87% of mutual fund investment managers underperformed their investment benchmarks. Most of the mutual funds in a Minnesota company 401(k) retirement plan fall into that same category.
Company 401(k) retirement plans are full of expensive and underperforming mutual funds. The disclosure of this information to individual company 401(k) retirement plan participants is severely lacking.
Think about the information made available to you by your company 401(k) retirement plan provider. Can you ever remember reading about the annual cost and investment performance differences between actively managed versus index mutual funds?
Company retirement plan mutual fund menus should include more index mutual funds.
You don’t have to pick the absolute best mutual fund option on your company retirement plan menu. Just find the lowest cost index mutual fund available on your company 401(k) retirement plan menu.
Can you figure out which mutual fund option on your company 401(k) retirement plan menu is an index mutual fund?
If you can’t figure it out, send me an e-mail with the name of the mutual fund and I will help you out.
Ric Lager
Lager & Company, Inc.
