Many working couples do what they’ve been taught to do.
Each person contributes regularly to their own 401(k).
Each selects mutual funds from their default 401(k) menu.
And each 401(k) account is managed more or less in isolation.
Retirement success is not determined by how each 401(k) performs on its own.
It’s determined by how the household’s combined 401(k) assets are structured.
Investment options managed through a working career.
A coordinated 401(k) strategy often improves results without changing risk.
Every 401(k) menu is different.
Some offer strong, low-cost investment options.
Some are poor and expensive.
It’s best to look at each household 401(k) separately.
And to identify the best features and blind spots.
Where are the strongest investment options across both 401(k) plans?
Where are the weakest or most expensive?
Here’s a 401(k) feature many households overlook.
The 401(k) Self-Directed Brokerage Account (SDBA) option.
This is a brokerage account housed inside the 401(k).
That expands investment choices beyond the core mutual fund lineup.
That provides access to lower-cost investment choices.
When available the SDBA 401(k) account option changes.
How a household structures its 401(k) investment management decisions.
Consider reviewing household 401(k)s together, not separately.
P.S. Household 401(k) coordination uses the best available investment options.
