Your company offers a major benefit through its retirement plan — a powerful vehicle that helps you save. It’s up to you to decide how to make the most of its many features, including deciding on your investments. But you don’t have to go it alone... whether you want to “do it yourself,” have a professional “do it for you” or “get some help doing it,” most plans offer a wealth of resources to get you started and keep you on track.
Drive the “car” yourself
If you’re interested in learning about the investment markets and comfortable making the choices that are right for you, you may want to be more involved in managing your plan. When you choose to “do it yourself,” you:
- Mix and match individual funds from your plan’s investment menu.
- Select an asset allocation fund that invests in accordance with your tolerance for risk, and then decide when you want to change to another fund when your risk tolerance or new financial circumstances warrant.
- If you are interested in an “all-in-one” type of investment that automatically invests according to your time horizon to retirement and beyond, you may want to consider a target-date fund.
Uber your future!
Would you rather focus your time on interests outside of investing, taking more of a hands-off approach to managing money? Maybe you’re a “do it for me” investor. This option may be appealing to you if your finances are complex. Say your financial goals include buying a first home, having children or caring for parents. As a “do it for me” investor, you can have an investment professional select and manage the funds in your account for an annual cost and provide financial planning to help you pursue your goals.
Maybe ridesharing is more your speed
Maybe you’d like to keep control over the funds you select in your account but would like someone to talk to about your decision. This describes the “get some help doing it” investor. Most retirement plans offer access to online advice tools, or a toll-free Call Center that you can call for guidance about the investments offered under your plan, how to allocate them, and when it may make sense for you to rebalance.
Enjoy the journey — and the destination
No matter how you choose to manage your retirement plan, it’s important to stay active and on top of your retirement plan. Remember, it’s very important to:
- Periodically review your portfolio and rebalance to your preferred target allocation if necessary;
- Think about combining accounts to take advantage of potentially lower fees and built-in fund monitoring that’s available in your current company’s plan;
- Update beneficiary designations after major life events (e.g., having a child, entering into marriage or going through divorce); and
- Choose income options that fit your needs (e.g., systematic, partial, lump-sum withdrawals — or keep investing if you don’t need income right away).
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
Kmotion, Inc., 412 Beavercreek Road, Suite 611, Oregon City, OR 97045; www.kmotion.com
© 2018 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.