Most 401(k) investors pick a few mutual funds.
Spread money across names and categories.
Like the last article they read about “diversification.”
Don’t put all your eggs in one basket.
Sounds logical.
Like it can’t hurt your 401(k) over the long-term.
What’s inside the 401(k) mutual fund.
The individual stock and market sectors.
Is where the stock market risk lives.
Diversification doesn’t fix weak 401(k) mutual fund picks.
Look at the funds one-at-a-time.
Which ones are actually strong?
Which ones are lagging?
Then narrow your picks to the stronger mutual funds.
A more thoughtful 401(k) doesn’t begin with diversification.
It begins with better individual mutual fund decisions.
Want to see a ranked list of your 401(k) mutual funds?
If so, let’s get a connection started here.
P.S. Better 401(k) mutual fund picks matter more than diversification.
