3 Simple Rules to Tell if Your 401 (k) Plan is Performing Well

Written By Mary Beth Eastman
Last updated November 22, 2019

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November 27, 2018

Simple. Thrifty. Living.

You signed up for a 401 (k) when you started your job and forgot about it — until now. Where is it? How much is it worth? What should you do next? If you want to know the answers to these questions, you’re not alone. Around half of all Americans are confused by their retirement investment plans, according to a study carried out by investment firm Charles Schwab. It’s time to clear up the confusion once and for all. Follow these simple rules and discover if your 401(k) plan is any good.

Your employer might be making sizeable contributions to your 401(k) plan without even realizing. Therefore, it’s a good idea to talk to your manager about your retirement investment funds. If you work for a large company, the HR team should point you in the right direction. If you work for a smaller company, however, you might want to send an email to your boss.

Investing in a 401 (k) plan can safeguard your financial future, but fees could be reducing your retirement nest egg. The truth is, most Americans are completely unaware of how much they are paying in 401 (k) fees. Don’t be one of these people. Find out how much you are paying in charges — mutual find fees, investment expenses, administrative fees, etc. — on your current plan.

Fifty-seven percent of Americans wish there was an easier way to determine their retirement investments, according to research from investment firm Charles Schwab. Perhaps a 401 (k) management company can help them. Leawood, Kanas-based investment advisors Blooom help people navigate the often-treacherous waters of 401(k) plans with expert investment advice.

In Blooom’s own words: “We are a group of experts dedicated to managing your 401k online in a simple, affordable way — giving people the confidence to make smarter decisions with their hard-earned dollars.”

Companies like Blooom help people manage their retirement accounts and find out whether their 401 (k) is doing any good. You can get smarter about your 401k by using Blooom to optimize your fund selection.

Knowing whether your 401 (k) plan is doing well can be tricky. Follow the three steps on this list, however, and you can make better sense of your retirement investments and finances.

About the Author

Mary Beth Eastman

Mary Beth Eastman serves as the content manager for Simple. Thrifty. Living, where she is dedicated to helping readers use money and credit wisely. Mary Beth believes that access to the right financial information paired with a growth mindset are essential tools for getting out of debt and building wealth. Mary Beth has a degree in Journalism from Bowling Green State University and has focused her 20-year journalism career on putting readers front and center, carefully considering their concerns and presenting information that will help them in their everyday lives. She has won numerous statewide journalism awards. Her writing on personal finance as been featured on numerous websites in addition to Simple. Thrifty. Living, including Huffington Post and Lexington Law blog. Mary Beth resides in Pittsburgh, Pa., with her family and two rescue dogs.

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