Most retirement plans offer anywhere from 10 to 20 different mutual funds for employees to invest their retirement savings into. While some offer nice diversity, what are you supposed to do if you don’t like the investment choices in your retirement plan? Let’s face it, the 10-20 mutual funds employers feature in their retirement plan aren’t going to work for everybody. Most retirement plans feature mainly large-cap funds and age-based funds, with significantly fewer small and mid-cap funds.
In some instances, there is a way to to open a brokerage account within your retirement plan. If you don’t like the investment choices in your retirement plan, find out if your employer offers a self-directed brokerage option. If you are able to utilize a self-directed brokerage option, you won’t be bound to the choices in your retirement plan anymore. You can create far more diversity in your retirement plan, and see great results if you invest wisely. It essentially allows you, or your investment advisor, to become the manager of your retirement plan.
If you choose to invest through a self-directed brokerage account, you’ll need to keep a close eye on your investments. Comprehending market trends and managing the risks involved with the stock market can be too much for individuals to handle alone. Mullooly Asset Management specializes in helping individuals with their 401k accounts, 403b annuities, and 457 deferred compensation plans. If you need help managing your retirement plan at work, contact our team today.