lundi 24 novembre 2014

When it comes to 401(k) investing, choose wisely

One of the most daunting decisions faced by workers is how to invest their 401(k) plan dollars.

The simplest choice might be a target-date fund, which automatically shifts from aggressive to more conservative investments the closer you get to retirement.

But some financial advisors say if you have the wherewithal, it's worth building a 401(k) portfolio that provides a more individualized investment approach tailored to your particular goals and life situation.

"If you have the opportunity to take a more precise approach, it's a good thing to do," said Jared Snider, a wealth advisor with Exencial Wealth Advisors. "Sometimes one-size-fits-all ends up not fitting any one individual the best."

As of June 30, 401(k) plans held an estimated $4.4 trillion in assets, according to the Investment Company Institute.

Read more: Data from research firm Morningstar shows that $690 billion of that was parked in target-date funds. (Read More)

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