Your company hires outside experienced and qualified experts in order to offer a fixed menu of mutual funds to retirement plan participants. Much care and detail are involved to design a retirement plan menu that prevents participants from making a catastrophic investment mistake.
Company 401(k) retirement plan sponsors are then obligated by law to annually review the mutual fund options available to retirement plan participants. No retirement plan consultant or company 401(k) retirement plan provider wants to get into legal trouble in regard to a company 401(k) retirement plan menu they designed.
Your company makes every effort to provide company 401(k) retirement plan mutual fund options that are “good for you.”
Contrast that to the financial hopes and dreams of individual company 401(k) retirement plan participants. They want the peace of mind that goes along with access to a menu of mutual funds that preserve and grow their company 401(k) retirement plan account principal.
Your company 401(k) retirement plan sponsor wants what is best for you. Unfortunately in the investment world, what is best for you is not always good for you.
Access to only the oldest, largest, and most respected mutual fund options in your company 401(k) retirement plan is a worthy goal. But you need more than just great mutual funds in order to successfully manage your company 401(k) retirement plan account.
You also need a stock and bond market risk-management game plan. Don’t let history repeat itself with another stock market roller coaster up-and-down ride over the next few years.
“Buy-and-Hold” has not been a successful long-term investment management strategy for your company 401(k) retirement plan account. I have serious doubts that fact is not going to change before you quit working.
You have access to good company 401(k) retirement plan mutual funds. The missing piece is a good stock and bond market risk-management game plan to along with it.
Ric Lager
Lager & Company, Inc.
