For many people, a 401(k) plan may represent the largest individual component of their retirement assets. Yet, too often it is not given the attention it deserves in order to allow it to grow in a responsible way so that it may provide a higher level of financial security in retirement. At CIG, we assist you in the management of your 401(k) investments.
For many of you, there is the opportunity to participate in your employer’s qualified retirement 401(k) plan. Often your salary deductions are matched, to some extent, by employer contributions. Consequently, the account value has the opportunity to become a substantial amount of dollars as a resource for retirement income. The primary factor to achieve account appreciation is the manner in which the account is invested. Each plan has its own specific choices that are available to the participant, chosen by the employer. In most companies the choices are a mix of annuities, mutual funds or indexes that resemble certain market indicators such as the S&P 500*. The number of choices available will vary from employer to employer.
It is important to be aware of what choices within your menu of options can best work for you at different times within the every changing economic and investment market cycles. Too many people make their choice arbitrarily upon joining a company, or when a 401(k) is first offered to them, and never make a change in their investment choices. At some time in the future when the economic environment changes after the initial selection was made, the original choices may not be appropriate for the current time. Equity (stock fund) choices may need to be differentiated between small cap, mid cap, large cap, value versus growth, domestic versus international, etc. Fixed income (bond fund) choices may favor government, corporate, high yield, convertible, etc. at different times in the interest rate cycle. Changes to your plan selections for your account may have a significant impact on the final accumulation of dollars in your 401(k).
We can assist you in the management of this important retirement asset. While we recognize a limited number of choices are available to you, we will review those options for optimum positioning in your account by thoroughly analyzing your account options and reviewing them on a regular basis. We will determine what investment classes are available and performance will be monitored. On a proactive basis we will advise you what changes we believe should be made in your account and follow up with you on those recommendations. Your 401(k) plan is much too important to the financial security that you seek in retirement to just assume that “it will all work out.” Utilizing the same analytical techniques that we employ in the management of our client portfolio’s we will work with you to make every effort possible in achieving results in your 401(k) to help you reach your retirement dreams.
* The S&P 500 Index is an unmanaged index that is generally considered representative of the U.S. Stock market. The performance of an unmanaged index is not indicative of the performance of any particular investment. Individuals cannot invest directly in any index. Investments offering the potential for higher rates of return also involve a higher degree of risk.