Investing is much different than all other life skills.
Most people will call a plumber if they have leaky pipes. They will go to the doctor if they don’t feel well for an extended period of time. And they don’t perform their own root canal.
Almost all individual company 401(k) retirement plan participants try to manage their stock and bond mutual fund investments on their own. Regardless of how many company 401(k) retirement plan mutual funds you currently own, you very likely own a majority of the wrong ones.
To compound the problem, the majority of actively managed mutual funds found on company 401(k) retirement plan menus are lackluster at best. After annual investment advisory fees, these mutual funds don’t come close to outperforming their stock and bond market benchmarks.
Individual investors don’t choose their company 401(k) retirement plan mutual funds in a rational way. That is the reason that annual investment returns are so lackluster.
There is a better way. You just have to be open to improving your company 401(k) retirement plan investment management decisions.
Independent investment advisors can act as fiduciaries to individual company 401(k0 retirement plan participants. These investment advisors don’t get paid to sell investment products; in the case of your 401(k), specific mutual funds.
Instead the investment advisory fee is an asset under management fee. The fee is calculated quarterly, based upon the investment performance of your company 401(k) retirement plan account.
The technology and tools are available to lower the annual costs and improve the annual investment performance in your company 401(k) retirement plan account.
Ric Lager
Lager & Company, Inc.
