401k Plan Review Services
How is Your 401k Really Doing?
How much is your 401k making? Are you satisfied with the results? The convincing answer that I often hear is “NO!“.
Personally, I have a love/hate relationship with 401k’s. I love them because they are an awesome savings tool that allows you to dump a large chunk of money in pretax. I hate them because most people don’t understand them.
If you’re feeling guilty – don’t. Most of time it’s not your fault. You start your job (or maybe you’ve been working there a long time) and your HR department gives you a 401k packet, a pat on the back and wishes you “Good luck with your retirement!”.
Comforting, isn’t it?
Because people don’t understand their 401k’s and don’t get the education they need, I see the following common mistakes:
- People do not save enough (No, 3% of your salary is NOT enough)
- People use default mutual funds that their company plan places them in potentially missing out on higher returns
- People try day trading their 401k’s (Good luck with that!)
- People listen to their co-worker about how to invest their money. (That’s like asking your neighbor if they think you need heart surgery)
Are you guilty of any of these? If so, keep reading….after you watch this short video:
Does Your 401k Feel Neglected?
Over the years, I’ve literally seen hundreds of different 401k plans. I can confidently say that most people don’t have a clue where they are putting their money. In fact, I would be surprised if the average person spent more than 15 minutes a year reviewing their 401k options.
Remember, your 401k will most likely be the largest asset you own (along with your house). Don’t you think it deserves a little bit of attention?
The 401k Plan Review
Realizing that people don’t have a clue about their 401k’s, and they want (and need) help, I’ve added a 401k plan review service as part of my practice.
Who is the 401k plan review for?
- People that need help figuring out which investments to choose for their 401k
- People that aren’t comfortable with their investment strategies in their current 401k
- People that need reassurance that their 401k is where it needs to be
Who is the 401k plan NOT for?
- People that think by making some changes in their 401k it will prevent them from never losing money
- People that think I have the magic formula to make you 20% return year after year. (Sorry, I’m a financial planner not a magic genie.)
- People that will change whatever options we provide a week later because you saw some story in the media about how bad the stock market is
Seriously. If you meet any of the “NOT” descriptions, don’t waste your time (or mine).
This service assumes that you have already made the commitment to save in a 401(k) plan with a long-term strategy in mind. It is not intended to be a comprehensive financial planning tool. Instead, this service focuses on choosing the best available mutual funds in the appropriate amounts to keep your retirement portfolio focused on your long-term plan.
What Do You Get With the 401k Plan Review?
So glad you asked With our 401k plan review service, we will provide the following:
- A personal and independent review of your 401k plan
- Professional research data (when possible) of your 401k (We currently use Morningstar and/or Thomson Reuters to do research on your fund options)
- Concise, customized written synopsis of your 401k review and suggested fund allocation chart based on stated goals, age, and risk assessment
Disclaimer: In some cases, 401k plans will use insurance companies or other types of plans that make it extremely difficult to do thorough research on the investment options. (FYI, I really dislike these plans….A LOT). If we feel that we can’t do our research thoroughly, we’ll have to respectively decline.
Recent Results From 401k Reviews
As they say, “the proof is in the pudding”. Actually, I have no idea who says that and I’m pretty sure that’s the first that I ever have…..
But just recently I’ve had a handful of clients that have come to me for this exact service. Here are some of the results that we’ve seen.
- Decrease risk. We’ve been able to dramatically decrease the risk of the portfolio (using beta as our measure) without giving up significant potential return.
- Decrease the internal fees of the portfolio. We’ve done this my removing the default target date fund options that most 401k plans use. Instead, we research your fund choices and individually select the funds most suited for you.
- Increased potential return. Although we though past performance is no guarantee of future results, we feel it is a valuable metric to see how the funds have weathered the last 10 years. Needless to say, the results were starting when compared to the clients default options vs. what they could have.
Cost For Review
The cost for The 401k Review is currently $250 for a single 401(k) account with a menu of 24 or less mutual fund choices. If there are more than 24 mutual fund options, the total price will be negotiated and agreed upon before any work begins.
How to Get Started – 3 Easy Steps
To get started taking control of your 401k, you need to follow the 3 easy steps.
- 1 Fill out the contact form below and email me directly to notify us that you’re interested in The 401k Review Process
- 2 Fill out the Risk Assessment Form. It’s a quick survey so we better understand your objectives. The survey is here.
- 3 Get back to us when we contact you. We will contact you to arrange getting a copy of your 401k investment options as well as your check for payment.