Don’t let your 401(k) languish.
That is the ‘radical” conclusion of the Employee Benefits Research Institute, a D.C. think tank.
Brett Arends of the WSJ gets more specific, and suggests a five-step plan to fix your 401(k):
1. Take control.
2. Cut your costs.
3. Lighten up on U.S. stocks.
4. Look internationally.
5. Review your bond funds.
Most od the 401(k) plans I review unfortunately offer a rather limited range of investment options — few ETFs, too many similar funds. Rolling over your plan into a self-directed individual retirement account allows you many more options for retirement. All you need to do is change jobs or quit.
I have an idea: National 401(k) Roll Over Day — even if you don’t quit! What are the odds of getting that passed . . . ?
How to Make Your 401(k) Plan Work Harder
WSJ, January 8, 2012