Comments on: The Importance of Diversifying Your 401K http://notmadeofmoney.com/blog/2007/04/the-importance-of-diversifying-your-401k.html Save Money - A Personal Finance Blog By A Husband And Wife Fri, 20 Nov 2009 23:16:45 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: ken http://notmadeofmoney.com/blog/2007/04/the-importance-of-diversifying-your-401k.html/comment-page-1#comment-8589 ken Tue, 03 Apr 2007 18:09:07 +0000 http://notmadeofmoney.com/blog/2007/04/the-importance-of-diversifying-your-401k.html#comment-8589 it's a matter of getting HR to enhance the plans by adding additional investment choices with a selection of mutual funds. but what happens next is that what is offered isn't what the employee wants. very often the employee wants something that isn't offered. namely some unusual fund that may have performed well last year. they never realize that the past performance does not guarantee future performance. then the employees and HR have a new headache with the selection among the typical dozen choices. HR generally cannot advise which funds to select. which leads to professional advisors. the fee only advisors are unbiased in their recommendations. commissioned advisors may have their advice unbiased. in the end, its the employees that need to educate themselves with the information available to them to make their selections. everyone will have a different investment setup. it’s a matter of getting HR to enhance the plans by adding additional investment choices with a selection of mutual funds.

but what happens next is that what is offered isn’t what the employee wants. very often the employee wants something that isn’t offered. namely some unusual fund that may have performed well last year. they never realize that the past performance does not guarantee future performance.

then the employees and HR have a new headache with the selection among the typical dozen choices. HR generally cannot advise which funds to select. which leads to professional advisors. the fee only advisors are unbiased in their recommendations. commissioned advisors may have their advice unbiased.

in the end, its the employees that need to educate themselves with the information available to them to make their selections. everyone will have a different investment setup.

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