You probably received your June 30, 2024, quarterly 401(k) statement by now.
Congratulations on the all-time high account balance.
Let’s be honest. You and I both know your 401(k) success has nothing to do with your mutual fund picking abilities.
Stop me if you have heard this before. Most individual 401(k) participants are not very good at managing their 401(k) accounts.
Rarely do I run across a 401(k) investor who owns one of the best-performing mutual funds on their default menu.
Each week, I review individual 401k) account statements. And default 401(k) mutual fund menu options. The results are predictable.
I still have a hard time containing my frustration. And it’s not even my retirement money!
Most 401(k) participants guess at “what to buy” in their 401(k). No logical or disciplined reason to own any individual or portfolio of mutual funds.
A failed attempt at diversification. Asset allocation. Rebalancing. Or any other investment management concept they heard or read about.
I see some very bad 401(k) mutual fund decisions. Even from investors with long-standing investment advice relationships. Outside of his or her 401(k) account.
Suggested changes to the current mutual fund holdings not executed. Or completely ignored.
The go-it-yourself approach is a fatal flaw for most individual 401(k) investors.
The Reluctance to “Fix” your 401(k) is a Trust Issue
Have you ever noticed; investors have a hard time trusting anyone else. Even another sophisticated and experienced professional at their level.
My 401(k) advice clients are all specialists. They know more than me about the specific area of business expertise.
But there is no way in hell they know more than I do about how to pick the best mutual funds in their 401(k).
For heaven’s sake, your 401(k) is your retirement money. As hard as you work. And with the hours you put in.
Don’t you deserve the best long-term 401(k) investment performance available to you?
You deserve the same fiduciary advice for your 401(k). As you receive from your doctor, lawyer, or accountant.
Independent, and third-party investment advice unaffiliated with your firm’s 401(k) provider (Schwab, Fidelity, Vanguard, etc.).
A complete analysis of the annual fees associated with each 401(k) mutual fund
A ranking of investment performance over several time periods
Most 401(k) providers and their mutual fund cousins tend to try to overexplain things. They complicate personal finance and investment management decisions.
You don’t have the time you would like to focus on personal financial matters. And keep up to date with stock and bond market volatility.
401(k) advice would be a good place to break out of that cycle.
There is no need to continue to guess with your 401(k) mutual funds. All you need is a second opinion. You deserve it.
Reach out to me on LinkedIn. Or comment below.
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