I have provided investment advice to individual company 401(k) retirement plan participants for just short of 20 years. After having hundreds of conversations with employees at every major company in my local market, I can confidently state the following observation is true.
The overwhelming majority of individual investors don’t give much thought to their company 401(k) retirement plan account mutual fund selections. Individual mutual fund choices in company 401(k) accounts are random at best.
Over the years, I have never been able to understand this fact. For most individual investors, their company 401(k) retirement plan account will most likely be the largest income producing asset they own in retirement.
Are you guessing at “what to buy” in your company 401(k) account now? With the stock and bond markets bouncing around on a daily basis, are you guessing at “when to sell” too?
It is very important to own the best mutual funds available to you on your default company 401(k) retirement plan menu. If you take all the risk associated with stock market investing, you should also enjoy all the best investment returns possible.
If you continue to own poor-performing mutual funds year after year, the loss of additional company 401(k) retirement plan account growth will provide less income in retirement.
Most individual company 401(k) retirement plan participants are missing out on tens of thousands of dollars of additional growth available in their 401(k).
This growth is easily available. All that is required is an independent, third-party, fiduciary level investment advisor.
The annual cost of this company 401(k) retirement plan investment advice would easily be covered by the additional growth and preservation of your retirement savings over the remainder of your working career.
You need to close the investment performance gap between the mutual funds you currently own in your 401(k) versus the other mutual funds available to you. This gap is likely costing you a great deal of money.
The mutual fund industry likes to write and talk about fancy investment management words like asset allocation and diversification. The same investment experts like to preach to you about choosing the mutual funds your 401(k) that will help you achieve your overall financial goals.
Improving the investment management decisions you make in your company 401(k) retirement plan account is not that hard. Don’t be intimidated by unfamiliar investment jargon.
You don’t need to continue to try to management your retirement nest egg on your own. Seek quality investment advice that will improve your company 401(k) retirement plan mutual fund decisions.
Ric Lager
Lager & Company, Inc.
