401k Investments 

Who decides what my 401k investments will be in my 401k plan account?

Typically the employer or employer retirement plan sponsor selects a number of investment options, with differing investment objectives, to fit varied participants' needs.

In general, you are then permitted to allocate your 401k contributions among the choices.

How do I choose the mutual funds and other investments that are most appropriate for me?

Your choices (and your investment objectives) of mutual funds and other investments should be based on factors such as

• your age,
• your income and
• your tolerance for risk.

Many employer retirement plan sponsors will offer some free consultation periodically. Many will have financial advisors come and talk to you as a group. Based on your age, income, and risk tolerance, you will be offered a choice of standard investments. However, many people do their mutual fund research themselves to ensure maximum results. Click here to read more about mutual fund research. Since financial advisors provided by your 401k retirement plan sponsor look after many accounts (all employees), you are unlikely to get personal attention. Doing your own mutual fund research and compare notes with the financial advisors will often prove to be the most beneficial route.

What record will I have of my investments?

Most employer retirement plans send periodic statements, frequently after the close of each calendar quarter.

These 401k plan statements are likely to summarize your beginning balance or market value, any 401k contributions you and/or your employer have made to your retirement account during the statement period, any fund transfer activity, any loan or withdrawal activity (if applicable), any investment gains or losses and the closing balance or market value.

Can I change the investment direction of my future 401k contributions or transfer my existing balances among the various investment mutual funds?

In general, yes, according to the rules established for your employer retirement plan.