The best answer I can provide is that it all depends.
Not everyone needs 401(k) investment advice.
Common sense will tell you.
Ask yourself the following set of questions.
Should I continue to manage my own 401(k)?
Morningstar reports that the average 401(k) plan offers 21 mutual funds.
Hard to make sense of that many options.
Even if you have the time.
And the expertise.
Can investment advice add value to your 401(k) investment management?
Individual mutual fund analysis and selection can always be improved.
The same level of depth and analysis used by investment professionals.
Is now available to individual 401(k) investors.
Do you need a fiduciary advisor to manage your 401(k)?
Here is where I can add my professional opinion.
401(k) advice needs to come from an independent source.
Not affiliated with your 401(k) sponsor (your company).
Not affiliated with your 401(k) provider (Fidelity, Schwab, Vanguard, etc.).
You don’t need to be “sold” 401(k) investment advice.
You need more and better mutual fund information.
Is a 401(k) investment advisor long-term strategy?
401(k) advice is not something you only need once.
Remember your legal, tax, and medical professionals.
401(k) advice should be part of your professional network.
Likely 401(k) provides a completely solvable problem.
What is the risk of no 401(k) investment advice?
The best answer here is to ask another question.
How much does it cost to own the wrong 401(k) mutual funds?
The answer is your recent 401(k) mutual fund experience.
You currently own 401(k) mutual funds that dropped in value.
Much more than the stock market averages.
If the stock market rallies, a handful of mutual funds will appreciate.
How do you know which handful in your 401(k)?
How much does 401(k) investment advice cost?
In my experience, about 1% annually of your 401(k) account value.
The best answer here is the same one to the previous question.
It costs much more to continue to own the wrong 401(k) mutual funds.
There is no need to continue to guess with your 401(k) mutual funds.
You deserve a second opinion.
