Early in January, both your TPA and CPA send you worksheets so they can start crunching numbers. Once you get them crunching, it is now your turn.
The best thing to do in the first quarter is to review the funds in your 401(k) plan.
There are two things to consider.
First, do you have the menu of fund choices you really want.
Two, examine performance and fees.
About 80% of money held in 401(k) plans across the country is invested in your QDIA funds (Qualified Default Investment Alternative), and the most popular of these, are Target Date Funds. So, pay particular attention to your QDIA choices! (In February of 2013, the Department of Labor published a brochure on Target Date Funds. If you would like a copy, let me know.)
Why are Target Date Funds so popular? They are simple to understand and very much less expensive than most other QDIA alternatives. And because there is so much money invested in these funds, we are seeing more and more choices every year and the prices keep dropping.
As you review your fund line up, always be sure to include a comparison of what you have to what else is out there. With over 30,000 funds today, you should demand the best and least expensive! To view the tutorial on my website, hit this link riggswealth.com/fund-selection-performance-measurement/
For help in doing full market comparisons, give me a call.
Greg Riggs, CFP Accredited Investment Fiduciary email@example.com / 425-485-1248
Securities and Advisory Services offered through KMS Financial Services, Inc. Member FINRA/SIPC