Even casual professional golf fans know that the PGA Championship begins this Thursday at Quail Hollow Club in Charlotte, NC.
Let me us this great annual sporting event as an example of how to improve the mutual fund picks that you make in your company 401(k) retirement plan account.
During the professional golf season, there is a weekly updated list of the top ranked professional golfers. From the beginning of the season until the end, the names on this list do not change very much.
A serious professional golf fan would be able to pick the top ten names on the list from the end of one golf season to the beginning of the next golf season. The final order on the list my not be perfect, but the majority of the names would be the same.
These top ten golfers outperform the rest of the professional golfers over the course of the season. And they do the same from one season to the next. Many years go by before there is a major change in the top ten performers.
The same phenomena take place in college football and NFL football. With a small handful of exceptions, the same top teams at the end of one season are the top teams to beat the following year.
The individual mutual funds found on your company 401(k) retirement plan default menu can be ranked the same way. There is a very clear difference between the best and the worst mutual funds to own now.
Why own company 401(k) retirement plan mutual funds that are not the best available to you? There is too much risk in the stock and bond markets to settle for anything else.
Most professional golf fans know that there are only a handful of golfers who could possibly with the PGA tournament later this week. An independent, third-party ranking of your current company 401(k) retirement plan mutual funds would reveal the same information. That ranking would go a long way towards improving your investment performance.
Ric Lager
Lager & Company, Inc.
