A second opinion on your Minnesota 401(k)

Imagine this scenario: your car won’t start. You turn the key in the ignition, and nothing happens. A second turn doesn’t do any better. Do you think to yourself, “Well, the car is dead. Time to buy a new one."

Is this what you would do?

Of course it isn’t. No one ever throws their car away like that. You’d take it to a mechanic.

You would have your car looked at. You ‘d get a second opinion.

Second opinions are wonderful. They give you the chance to hear the good news. They give you the chance to get something better. We all rely on them. If our car breaks down, we get a second opinion. If we feel sick, we get a second opinion.

A second opinion on your 401(k). So your retirement account survives the twists and turns of our uncertain economy. You can’t get much more uncertain as we end the first month of 2024.

Too many 401(k) investors are like the person who wants to throw their car away. Frustrated with the fact they aren’t getting anywhere. They pay no attention at all to their 401(k). They know nothing more than the “buy-and-hope” investment management strategy.

When stock fall and interest rates rise. They don’t react. The believe that “things will get better.”

Other 401(k) investors are the opposite—they do anything and everything. Too much. Too often. They make radical changes to their 401(k) mutual funds. Over and over again, trying to time the market. Trying to find what sticks.

Either approach can damage your 401(k). Like trying to drive your car with the parking brake on.

But it doesn’t have to be this way. You can be certain that your 401(k) is heading in the right direction. The “what to buy” question in your 401(k) answered at any time.

Peace of mind with your 401(k) is a wonderful thing. Knowing you only own the cheapest and best-performing 401(k) mutual funds available to you.

All it takes is a second opinion. If I stick with the car analogy, think about a “401(k) tune-up."

Many of my current 401(k) advice relationships began this way. With an independent, third-party analysis. A fiduciary-level second opinion on your default company 401(k) mutual fund menu.

My clients had never seen that depth of mutual fund analysis before. Specific to their 401(k) mutual funds. They liked what they heard and decided to stay. Here’s how it works:

You provide the list of your default company 401(k) mutual funds. And if the SDBA (self-directed brokerage account) option is also available.

We then rank your 401(k) mutual funds. By annual costs and investment performance. If you play fantasy football, it is the same concept. To pick the best 401(k) mutual funds on your team.

Buy, hold, or sell. A specific investment management strategy for each 401(k) mutual fund you own now. For each mutual fund available to you. And how to fill in the gaps with the SDBA account.

If you want the advantage of a 401(k) tune-up, all it takes is an account statement. Or a screen shot of your current 401(k) mutual funds.

A second opinion on your 401(k) mutual funds is timely now. There are too many crazy things going on in the world now.

Ric Lager

Not sure about the 401(k) mutual funds you currently own? Email lagerandco@comcast.net. I can look over your default 401(k) menu and point you in the right direction.

I have spent the last several years trying to figure out the best way to share my 401(k) advice content. I have tried Twitter, Facebook, and my company web site. I now realize nothing beats a well-crafted newsletter delivered to your inbox once a week. Sign-up here.