Have you ever wondered whether it mattered to your retirement nest egg which funds are available to you in your 401k or other retirement plan? Have you considered whether they are all basically the same or are there material differences?

The answer is absolutely it matters. The next question is can anything be done about it?  At the end is a reminder of our contact information.

So, the answer “yes it matters” may seem obviously apparent to experienced investors who know there is a wide range in performance between mutual funds. This is true between funds who buy different types of stocks like domestic or international and small capitalization or large cap and growth or value. This is fairly obvious, but it is also important to recognize that there is a wide variety in performance even between funds that focus on the same investment style and stable of stocks.

It is less obvious in the world of index fund investing.  This is also known as passive funds. Next month we will look more closely and compare different index funds that buy and sell the same index. Small things like internal and external fees and tracking errors add up to big dollar differences over time.

To bring home this point, however, that it does matter which funds your plan offers, see the different results from different plans on our Special Report. We back tested plans using our rotation strategy of staying with the leaders and avoiding the laggards on specific 401k plan funds.

The end results are striking between top plans and bottom plans. In the examples shown of contributing $500 monthly for 20 some years, if your plan’s funds had better funds, you’d end up with a tidy sum of about $300,000 more than a plan with less than stellar funds.  With the absolute best 401k we tested, you’d have ended with more than $1,000,000.

It was the same contribution amount.  It was the same rotation strategy on the available funds. The significant difference in end results came from the funds available.

Not only do we provide our rotation strategy, but we can help also as to which are the better funds. We think of 401k fund choices in terms of best in class, lowest cost, and widest diversification to complement and contrast funds within your plan.  It matters to your nest egg.

Have your plan’s committee call us at 800-800-6563 or email us at info@401kSelections.com for a free, no obligation review.