401k Retirement Plan: Choosing from the Vendor List

With your 401k retirement plan, you will typically have a vendor list to consider as you make investment decisions. This vendor list will provide you with a list of investments that are pre-approved for investors in the 401k plan. The list will usually be made up of mutual funds, stocks and bonds. In order to choose the right investments for your retirement plan, you need to make sure that they mesh with your investment goals.

Choosing an Investment

In order to choose the proper investments, you should check out the information about each investment before making a decision. When evaluating one of the potential investments, you should look at its investment strategy to see whether it is passively or actively managed. You will want to look at the annual returns for the investment as well. If you are choosing between mutual funds, you should compare the expense ratios as well. Expense ratios eat up your returns, so you want to choose a fund with one of the lowest expense ratios available. 

Target Funds

One type of investment that you might want to consider is a target date fund. These funds are typically offered through 401k plans and offer a solid way to invest for retirement. These funds will automatically change the allocation of investments in the fund as you get closer to retirement.

blog comments powered by Disqus