How Professional 401(K) Management Can Help Account Performance

Do you do more for your 401(k) account than looking at your monthly statement? Is your 401(K) continuing to grow and flourish? Did you know that professional 401(k) management services can help increase your account’s performance? It’s true! Using professional 401(k) services has the potential to boost your retirement savings.

Here are five ways 401(K) management services may help you have a happier retirement future.

  1. 401(k) Management Can Help You Keep More Money

Deciding when to retire is a critical financial decision. Some choose to retire early; some choose to retire later in life. It is up to you to decide when you want to retire, however it is also important to know if that is even a feasible date. Do you know if you are on track to retire when you want to? A 401(k) management team can help you plan and invest appropriately so that you are capable of retiring when you want to.

Hiring a professional 401(k) management team, studies have shown that investor returns increase drastically. Aon Hewitt and Financial Engines conducted a study from 2006 to 2012 and compared the returns of 723,000 investors in which some sought professional help, and the others did not. The study concluded that people who received help earned higher median annual returns than those who invested alone. Their assets saw an average of 3.32% more in returns annually than those who managed their own accounts.

  1. Professional 401(k) Account Management Helps to Reduce Retirement Stress

One of the top reasons’ investments underperform in the market is due to emotion. They may fear losing Money if the market is going to drop, or the dread of retiring without adequate savings causes them to make investment decisions based on emotions, which has the potential to impact your retirement savings negatively.

When you hire a professional team to manage your 401(k), you can remove the emotion out of financial decisions, especially during times of uncertainty, such as a global pandemic. At Trust Company of Oklahoma,  our team wades through the markets to help make decisions based on data and trends, not feat and worry. Without expert advice, you are more likely to make better financial decisions and earn a boost in retirement savings.

  1. Professional 401(k) Management Helps Save You Time

Behind every successful life transition, is careful planning. Markets go up and down. Incomes fluctuate. Unexpected expenses crop up. With so many unknowns, it’s often tricky to forecast life upon retirement. You want to work with a company that provides personalized retirement planning. After all, you retire. Your Money shouldn’t.

Successfully managing a 401(k) plan takes time and skill. It takes hours of investing and portfolio experience to manage a 401(k). If you have time to research which assets to use, how many, and how often to rebalance them, then that is great! However, most people don’t have the time it takes to research and adjust their accounts regularly to help them flourish.

When you have a professional 401(k) management diligently watching over your investments, you have more time for enjoying life because you know your 401(k) is being taken care of for you.

  1. 401(k) Account Management Can Help You Reduce Fees

Did you know that most 401(k)s have hidden fees that take your hard-earned investment returns away, leaving you less Money to retire with?

The Obama Administration conducted a study about hidden fees in retirement plans in 2015, proposing a ruling that would ensure “retirement savers get investment advice in their best interest, so they can grow their nest egg and be better prepared for retirement.”

This study found on average investors earn 1% point lower annual returns on retirement savings, while discovering that 92% of investors had no idea that they were paying fees. Unfortunately, the fees 401(k) accounts face can be difficult to discover. A professional 401(k) management team can help you identify the fees inside your account to let you know if you are paying too much.

  1. Professional 401(k) Management Means No Facetime Required

At Trust Company of Oklahoma, our professional 401(k) account management team helps you grow your 401(k) account, and we can handle it all virtually. Sure, we are happy to meet with you in person too, but the option is yours.

No matter if our meetings are in-person or virtual, our goal is to increase your account performance over time, manage risks to help minimize losses and reduce fees that could take away from your retirement money.

Top 5 Retirement Planning Mistakes

As more and more baby boomers start looking towards retirement, thoughts turn from worry over the workday to how to fund their golden years.

  1. Not Considering Your Life Expectancy

Your retirement security may be affected if your life expectancy is above average.

  1. Not being Smart about Claiming Social Security and Medicare Benefits

Don’t wait until the last minute to file for benefits.

  1. Not having a Retirement Budget

Most people underestimate what they need in retirement. Have you given much thought to what you will spend your free time in retirement doing? It is critical to calculate that into your overall retirement budget.

Remember: healthcare costs can escalate in later years.

  1. Not having an Estate Plan or a Will

Estate planning isn’t just for the wealthy. If you die without a will or estate plan, a judge will have the ability to award your assets to an unintended party. Trust us when we tell you that having an Estate Plan or Will created is Money well spent now to avoid future problems for you and your loved ones.

  1. Taking Money Out of Your 401(k)

Taking a loan for your 401(k) account can be tempting; after all, it is your Money. However, the taxes and penalties can make it not worth it. Run the math first!

  1. You Cannot Plan to Work Indefinitely

We often hear that people plan to work beyond the age of 65 to maximize their Social Security checks. But could you consider this? According to the US Department of Labor Statistics, just 1 in 5 Americans age 65 and older are actually employed.

We all want to believe we will stay healthy long into our retirement years, but what if we don’t. Should you be forced to retire early, are you able to do that? Have you done everything in your power to make sure to get the top-dollar return on your retirement accounts?

If you are worried about your 401(k) account not profiting in the manner in which you had hoped it would, or if you find that you are concerned that the pandemic losses will mean you cannot retire when you hope to, we want you to know that we are here for you. Your financial future should be managed with confidence.

Get expert financial advice and hit your goals with our highly experienced team that has your back. Schedule your free call now.