How to Compare Solo 401k Plans

Investing in a solo 401k can be a smart decision if you are self-employed. However, when choosing between the available options that you have for a solo 401k account, there are a few things that you should evaluate. Here are the basics of how to compare solo 401k plans.

Fees

One of the first things that you should look at is the amount of fees that a broker charges. Most of these retirement accounts will have some type of annual fee that you will have to pay. For example, you might expect to pay somewhere between $50 and $100. However, if the broker is asking for more than that, you might want to look elsewhere.

Investment Options

You should also be sure to look at the number of investment options that you have. Many solo 401k plans have a limited number of investment options. If you are looking at a plan and it does not have a certain type of investment that you like, you should continue looking. There are many plans out there that will allow you to invest in many things besides just stocks, mutual funds and bonds. Therefore, if diversity is important to you, make sure that you find a plan that fits this need.

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