Many individual 401(k) investors start in the same place.
They search for “what to buy” in their 401(k).
The search for the “best” mutual fund pulls attention.
Toward recent investment performance or familiar names.
This activity makes it hard to see the real 401(k) mutual fund issue.
Not every mutual fund offered in your 401(k) is bad.
The issue is that the worse ones are in plain sight.
Here’s are the telltale signs of a bad 401(k) mutual fund:
It goes up less during a stock market advance.
It goes down more during a stock market decline.
Lag on the way up and lead on the way down.
Not an ideal 401(k) mutual fund selection strategy.
And what’s even worse.
Bad 401(k) mutual fund picks compound over your working career.
The 401(k) “cost of the problem” reveals the dollar amount cost.
And provides justification—or not—to seek a solution.
If you continue to own even a single bad 401(k) mutual fund.
There is a dollar amount cost to your 401(k) going forward.
In both up and down stock markets.
Is the cost of owning the wrong 401(k) mutual fund–
Worth the cost of solving the problem?
Do not begin with, “What should I buy?”
Begin with, “What is it costing my 401(k) to keep what I already own?”
Let’s connect to find out if you own a bad 401(k) mutual fund now.
P.S. The goal of picking 401(k) mutual funds is to avoid the worst ones.
