Mutual funds are the Rodney Dangerfield of the U.S. investment management landscape because “they get no respect.” My apologies to the young readers of this blog post. My two college kids had no idea who that was either. I linked his Wikipedia profile page to his name above.
All of my clients who have the SDBA (self-directed brokerage account) company 401(k) option like the transparency and low cost of ETF’s. There are an unfortunate few individual company 401(k) retirement plan investors who only have mutual fund options available. For them, mutual funds are the only way to grow and preserve their retirement nest egg.
The Investment Company Institute recently announced that company 401(k) assets hit another new high. Mutual fund managers now manage 65% of all the U.S. assets held in company 401(k) plans.
The vast majority of individual company 401(k) retirement plan participants own an equity much fund. In fact, most own more than one equity mutual fund.
If saving for retirement is the actual goal of company 401(k) retirement plan account investing, it makes sense to know as much as possible about the mutual funds you currently own.
In the past, there has been little or no access to independent, third-party, unbiased, full disclosure information of company 401(k) retirement plan mutual funds. Thankfully, those days have come to an end.
More and more investment advisors are reaching out to existing clients in order to expand the menu of options to include individual company 401(k) retirement plan accounts. Every working member of the client household qualifies as a potential user of this level of investment advice.
There are mutual fund analysis databases are available to any investment advisor who want to take the time to learn. Individual company 401(k) retirement plan participants are running out of reasons to “buy-and-hope” how they choose and manage their company 401(k) retirement plan mutual funds.
Ric Lager
Lager & Company, Inc.
