401k Advice and Retirement

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401(k) investment advice
When you participate in a 401(k) or similar plan, you can decide how to divide the money in your account among the various investment choices offered by the plan. As retirement approaches or your circumstances change, it’s also up to you to modify the way your portfolio is allocated, so that it stays on target to meet your financial goals.

One consequence of making your own 401(k) decisions is that the amount of money you have in your plan account when you retire depends on the investment choices you make and the amount you’ve contributed. If you’re like many 401(k) investors, you may be uncertain about whether the decisions you’re making are the right ones to achieve your goals. Perhaps what you’d really like is some professional advice.

In fact, some surveys suggest that many employees are unsure how to invest their money and a significant percentage don’t change their allocations after making an initial choice. Further, many of them may not be choosing appropriate investments. According to a study by the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI), 15% of all 401(k) participants, and over 18% of those in their 20s, have none of their plan assets invested in equities. People like these may be missing out on an important opportunity to build their retirement savings.

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