Don't Unengage with Your 401(k) This Summer

It is hard to stay focused on personal financial issues during the all-too-short Minnesota summer. It has been especially difficult this summer. The wet, and now cooler, summer weather has been a disappointment.

Fidelity Investments published a study earlier this spring that shows most individual company 401(k) retirement plan participants pay little or no attention to their company 401(k) retirement plan accounts.

Fidelity's numbers state that 63% of company retirement plan participants manage their own investments. And 54% of those same investors classify themselves as "unengaged" in the investment management process of their company 401(k) retirement plan accounts. 

The study makes it very clear.  Most individual company 401(k) retirement plan participants don’t change the mutual funds they own from several years ago. They also don’t talk to anyone about how to make better investment decisions.

My experience as an investment advisor is the same. I routinely talk with smart and well-educated adults with six-figure company 401(k) retirement plan accounts. Many of these individuals don’t remember the log in and password information for online access to their company 401(k) retirement plan accounts.

You can pay no attention to a company 401(k) retirement plan account works when stock markets are near all-time highs. The same goes when interest rates are near record lows.

Everything in life changes from time to time. Nowhere in life is that more evident and potentially dangerous to your financial health than the stock and bond markets.

Get more engaged with your company 401(k) retirement plan account.  Read more on your own. Or call your company 401(k) retirement plan provider.

Talk to an independent investment advisor. More and more investment advisors are taking on the fiduciary responsibility necessary to provide investment advice to individual company 401(k) retirement plan participants.

Ric Lager
Lager & Company, Inc.