Resolve to Reassess Your 401(k) in 2012

With so much political and financial uncertainty right now, take the opportunity to improve your 401(k) investment performance for 2012.

Right now is probably the best time in your working career to take the time to reassess the investment performance in your Minnesota company 401(k) retirement plan account.

With a long list of uncertain political and financial events dominating the worldwide headlines, the timing is perfect now for you to make an effort to better preserve and grow your retirement plan assets.

The vast majority of individuals try the “do-it-yourself” approach in regard to the investment management of their company retirement plan accounts. 

Some individual investors are well suited for the rigors of managing their own money.  These individuals are sophisticated in financial and investment matters and do a good job of managing their own retirement plan accounts.

If making your own investment decisions has worked well for you in the past, then by all means keep up the great work. In fact, reach out to other family members and friends who may be smart enough to realize the help that you can give them in managing their retirement plan accounts.

If you have been frustrated in the past by your inability to find the time, experience, or comfort level in making your own retirement plan investment decisions, you should reach out to a professional investment advisor.

Make sure to look for a professional investment advisor who will provide you with a fiduciary level of investment advice. A fiduciary investment advisor will always put your investment objectives first and not try to “sell” you an investment product that you don’t need.

The person that cares most about your retirement plan account is you.  Look for an investment advisor who shares those same feelings.

Also look for a financial advisor who is experienced in providing investment advice to individual company retirement plan participants.  This advisor should be able to provide you with an investment management game plan for the mutual funds in your company retirement plan menu.

Last, and most important, is to find an investment advisor who can articulate an investment management strategy for your company retirement plan account in both up and down stock market and U.S. economic cycles.

The historical volatility of the stock markets over the last few months is very likely to continue.  For that reason, the traditional old “buy-and-hold” retirement plan investment strategy is likely going to continue to frustrate most individual company retirement plan investors.

In 2012, find a company retirement plan investment strategy that is designed for the stock markets of today’s real world.

Ric Lager
Lager & Company, Inc.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.


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