Advice for Employees with Mediocre 401k Plans

Last week we blogged about an article by the St. Louis Post-Dispatch's Jack Naudi encouraging employers to offer low cost, mutual funds in the company 401k plan.

This week Mr. Naudi follows up with an article for employees faced with 401k plans that offer high fee, actively managed investment options (which, unfortunately, is the case for the vast majority of 401k plan participants).

The best piece of advice in the article, however, applies to investors of all stripes. Mr. Naudi writes . . .

"I'm convinced that fees are the primary factor separating the performance of similar investments. I don't think it's possible to defeat the markets over the long term. And if it is possible, I think it's impossible to pick the skilled pros over the lucky ones.

In general, investments will return the market averages, minus the fees of those doing the investing. Study after study has proved that to be true."

Bookmark this post with:

• 
• 
• 
• 
• 
• 
• 
•