Your 401(k) contributions are automatic.
So you might also think your investment management is also done.
Your 401(k) money goes in regularly.
Your account value grows over time.
The details are not important.
A 401(k) contribution is a habit.
A 401(k) mutual fund selection is a decision.
Those elements are not the same thing.
401(k), mutual funds are not all equal.
Most underperform their stock market benchmarks.
Expose investors to higher levels of stock market risk than they realize.
Charge annual fees that are hard to defend.
Your 401(k) account statement can be misleading.
Because personal and company-matching 401(k) contributions.
Hide most mutual fund investment results.
Find out if the mutual funds you own now.
Are earning their place in your 401(k).
Look at each mutual fund through three questions:
1. How does the investment performance compare to its benchmark?
2. How much stock market risk does it take?
3. What are you paying in annual fees for your investment returns?
Review the 401(k) mutual funds you currently hold.
For each one, check its benchmark, its level of risk, and its annual fee.
Then ask one last question:
“If I had to choose today, would this fund still earn a place in my 401(k)?”
Want to check if your mutual funds deserve to stay in your 401(k)?
Let’s get connected and I can share the details.
P.S. The easiest 401(k) decision is to lose a bad mutual fund.
