401(k) Considerations to Improve Your Financial Future

Inspired by the illuminating PBS Frontline story The Retirement Gamble, here are some keypoints to consider for employers offering 401(k)s as well as employeesinvesting in them.

First, try to keep your investment fees below onepercent.  These fees include “fundexpenses, administration, asset management, and any other fees that silentlybut surely are taken from your 401(k) account.”

Next, invest in the more reliable index funds instead of themuch more erratic actively-managed funds. Index funds are an efficient way to earn market returns and avoid risk.

Last, use a 401(k) provider that will agree in writing toact in the best interest of your company’s 401(k) plan.  By ensuring your provider takes on afiduciary responsibility, you can hopefully receive the best fund options foryour retirement, and not the best options for your provider.

See StuartRobertson, PBS Frontline’s ‘TheRetirement Gamble’ Got 401(k)s Right, Forbes, May 13, 2013.