Most 401-k investors are passive investors. One reliable source is quoted as saying that 72% of 401-k participants never change their investment allocation once they sign up. Then they wonder why their performance is always mediocre.
This is serious business. This is your money, your retirement, yet many investors do not actively manage their investments. Most plans do not provide professional management so it is up to you to manage your account. This is not rocket science but it does require some attention. There are two things that you should consistently do to reach your retirement goals. 1) You should maintain a consistent practice of contributing to your account each and every month, and 2) you should review your account and determine if you are invested in the best performing funds or options that are provided by your plan.
Many investors have been afraid to be in the market since the crash that occurred in the 4th quarter of 2008 and the first quarter of 2009. Many people still remain in cash and are missing one of the best investment years of the decade. What are you waiting for? Since March, 2009, the markets have been on a consistent rise. The economy is improving and the immediate prospects for the markets continue to look good. Sure there will be periodic ups and downs to give you heartburn but the general direction is likely to continue to be up. If you wait until the markets get back to where they were in 2007, you will have missed most of the opportunity to grow your account.
The S&P 500 ended a fabulous quarter being up 5.39% for the quarter.
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Investing in stocks, bonds, mutual funds and other investments involves risk, and may decline in value and are not insured by the FDIC or any other Federal government agency.