Plenty of people pile some income into a 401(k) plan through work, and then essentially forget about it. Out of sight, out of spending range, right?
The trouble is, such funds might not be doing all they could or should to help fortify your retirement security. Scott Revare, chief executive with Smart401(k) LLC, an Overland Park-based Web site, has a few tips for checking up on your plan:
¢ Check for a self-directed brokerage account option. For those that have the expertise or access to an adviser to help select funds, this can provide an opportunity to maximize returns.
¢ Use any "auto-rebalance" option. Periodically, you need to rebalance investment percentages to keep them from skewing toward any one asset class. Many plans now offer to do this each quarter.
¢ Review new fund options. Well-run plans review their fund rosters periodically and dump any underperforming funds.
¢ Seize education or advisory options. Not only do your investments come with prospectuses, most 401(k) providers have abundant online offerings for novice investors.