Do you live in your 401(k) past or future?
I have provided investment advice to individual 401(k) participants for over 25 years. In my experience, 401(k) participants fall in to two very distinct groups. The first group live in their past 401(k) investment management results. Over their entire working career,...
A 401(k) should customized to you
Somebody sold something to somebody else. That is how your company 401(k) was established. A large financial services provider like Fidelity, Schwab, or Empower. Provide a default menu of mutual funds you never heard of before. And you get to figure out how to protect...
What Is the goal of 401(k) target date funds?
At the end of 2022, there were over 60 million active 401(k) participants. Investing over $6.6 trillion dollars. And 59 percent of them owned a target date mutual fund. These number come from the Investment Company Institute’s 2023 fact book. If you did not choose...
Do your kids need 401(k) investment advice?
I am the father of two Gen Z’s. Many of their college roommates, teammates, and friends are now in my 401(k) advice client base. I receive e-mail, phone call, and text messages from my kids. And their friends. All new to the working world. Trying to navigate their...
The two great 401(k) risks now. Pick one.
No sold stock market bottom predictions from me. The financial services media is full of investment advisors who offer that content. My 401(k) advice clients do not pay me for forecasts. They pay me for ongoing results. In both up and down stock markets. Right now,...
Do you need a financial advisor for your 401(k)?
Millions of American investors. Have the largest part of their stock and bond market investments in their 401(k). The bad news is the most individual 401(k) investors have no idea “what to buy” on their default retirement plan menu. One mutual fund looks the same as...
A 401(k) investment worth considering
Do you fall into this category of individual 401(k) investor? (I hope you do. Otherwise, this blog post is a complete waste of your reading time). Have you ever wondered if you own the best mutual funds offered on your company’s default 401(k) mutual fund menu? Most...
Loss Aversion can save your 401(k)
One of the things I enjoy the most about my business. I make time to read the great investment management books of our time. These books include economics, behavior, and investment management strategy. I am a huge fan of the work of psychologist Daniel Kahneman. His...
Where is your 401(k) stock market risk?
I sat down earlier this week with an individual company 401(k) participant. Male, 59 years old, current 401(k) account value over $1.2 million. After the usual chit chat ended, I asked about his 401(k) investment management objectives. A strategy for the preservation...
The cost of 401(k) inaction
The cost of inaction can do great harm to a 401(k). The required investment management decisions are opportunity costs. The core of these decisions are annual fees and maximized investment performance. Mutual fund selection in your company 401(k) account is always a...
