This week's Businessweek issue contains a number of articles and suggestions on how to retire early. One of the articles discussed the importance of seeking outside advice in the management of ones 401(k) investments. Simply obtaing advice is only one piece of the puzzle. The article notes the advice needs to be the right advice.
If one plans on seeking an independent adviser to assist in management of their 401(k), one should obtain answers to the following questions noted in the article:
If one plans on seeking an independent adviser to assist in management of their 401(k), one should obtain answers to the following questions noted in the article:
More detailed information on this topic can be found by clicking the article's link noted below.
- How well does the adviser know your plan? Ideally the person should be familiar with or willing to learn about how your 401(k) works and the investment choices available.
- How will your adviser find the right investment mix for you? Smart asset allocation and consistent rebalancing are the main investing strategies that can make early retirement a reality.
- How closely will the adviser monitor your plan? Through the internet, 401(k) investors can keep an eye on their account daily if they so choose. Your adviser should be watching regularly, too, and sending you alerts if you need to rebalance or make other changes.
Source:
Who'll Coodle Your Nest Egg
BusinessWeek Magazine
July 9, 2007
http://www.businessweek.com/magazine/content/07_28/b4042402.htm
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