Why 401(k) Mutual Funds Drift and Risk Rises
Picking your 401(k) mutual funds.Thought to be a one-time decision. Guessing “what to buy?”The stock market goes up for years.What’s to worry about? The stock market has other ideas. The structure of your 401(k) mutual funds.Is overweighted in Large Cap technology...
Managing Behavior in Your 401(k)
Stock market volatility increases.Individual 401(k) investors react with emotions. As a result, mutual fund selection decisions begin to shift. Increase exposure to rising 401(k) mutual funds.Decrease exposure to falling 401(k) mutual funds.Whatever feels appropriate...
When “I’ll Look Later” Becomes a Long-Term 401(k) Risk
Most 401(k) problems begin during times of stock market stress. Two assumptions show up repeatedly: “I don’t have time to deal with this.”“I don’t need help with my 401(k).” Both sound sensible.Time and attention are scarce. As a fiduciary 401(k) investment advisor.I...
Same 401(k) Can Produce Different Mutual Fund Outcomes
Most individual 401(k) investors make the wrong assumption.Their 401(k) outcome is driven by the stock market. If their balance grows, things are working.If it lags, it must be stock market timing or economic conditions. But inside every 401(k) mutual fund menu...
