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Should You Choose A Professional Manager For 401k Investments?



Should You Choose A Professional Manager For 401k Investments?

Being fully prepared for your retirement is important. Many people decide to do some investments themselves for the 401k, but could a professional advisor be more efficient? Let us find out today!

Can I Choose My Own Investments?

In most cases, employees have much freedom when it comes down to investment choices. While your employer could limit your investment choices to some degree, most employees can find many investments that could be quite lucrative for their 401k.

Can I Get Professional Insight on the Job?

You can get some professional advice on your investments at your work, more specifically if you work for a larger corporation. Big businesses often have their own financial experts who do all the work and do the investments. Still, as the employee, you still have to sign off on these investments.

Despite having that level of control, many employees don’t give their investments much consideration. Instead, they leave their company to do all the work and simply sign-off without doing much checking.

Of course, it is better to have some control over your investments and not leave everything to the financial experts. Sometimes, the combination of your own knowledge and expert knowledge is the way to go.

Related: What to Look For In a Financial Advisor

How Should I Manage My Investments for My 401k Plan?

If your workplace lays out some investments for you, make sure that the investments are quite diverse. It is best to have a mix of shorter high-risk investments and longer low-risk investments, since this combination usually provides the most yield.

Related: How to Manage Asset Allocation For a 401K

Should I Invest Outside My 401k Plan?

It is certainly a good idea to invest outside of your 401k plan. Some of your additional options are real estate and the stock market. Of course, for these investments, you could consider the advice of a financial expert. However, the end decision on where to invest should always be yours.

For example, if you are considering investing in the stock market, ask your financial advisor for some stock tips. Still, do not just take your financial expert’s word for it though and do your own research before you buy some of the recommended stock.

If you intend on investing in stocks for several years, be sure to regularly check on the status of the company you have invested in. Companies evolve constantly, so your stock could fall in value.

Related: 4 Reasons to Invest for Retirement Outside Your Company 401k


A financial advisor could certainly help you to find the right investments, whether it relates to the 401k plan or separate investments for your retirement. However, even with a financial adviser, always make sure you have full control over your investments and that you have the final say! Only by having more control can you secure a safe financial future.

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