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401k Investments: Should You Choose or Let a Professional?

401k plans are retirement plans designed to supplement pensions and social security. They are funded through employee payroll deductions. An employer has the ability to match all or a percentage of funds contributed. The money is then invested for long-term success. Most individuals opt for bonds, stocks, or a combination of the two.

If you are just creating your 401k plan or if you are now just realizing the importance of yours, a question may arise. That question is whom do I let handle the decision-making. Unlike Social Security and pensions, you, the employee are in control. Your employer may limit some of your investment opportunities, but you always have choices.

The problem comes from financial experts. For larger corporations, especially where unions are involved, there is usually financial experts and advisors on hand. These individuals can help you make the right investment choices, but some do all the work. The employee, which would be you, still has to sign off on the investments, but many don’t give it any thought. This is common with those in their 20s and 30s. They are not typically concerned about retirement yet, but do agree it is a good idea to start saving.