Here is an honest question: When’s the last time you had your 401(k) reviewed by a financial professional?

For many workers, the 401(k) remains the cornerstone of retirement planning, the foundation on which all long-term financial plans are based. As such, it almost goes without saying that decisions made within the 401(k) portfolio are make-or-break. And yet, many American workers reach retirement age with 401(k) accounts that hardly provide enough for a stable future; in some cases, the total value of the account might not be enough for even a year of living.

The Importance of Regular Review

That a 401(k) might come up short is no big surprise: Many of these accounts are not routinely reviewed; many investors are unclear of what their plan encompasses; and reallocation of portfolio assets can happen far too sparingly. The result? Many investors have long-term holdings that are simply not compatible with their risk tolerance or their overall financial goals.

This is not entirely the fault of the investor, of course. Often, companies offer their employers 401(k) benefits, but no form of investment advice or guidance. Even companies with appointed financial advisors often fail to offer advice that is consistent or sophisticated, which means that employee nest eggs are neglected and ignored.

Outside Consultation for Your 401(k)

The good news is that you do not have to provide your own 401(k) direction, and neither do you have to rely on your employer to furnish you with guidance. Extensive 401(k) review and management services are readily available from many independent financial advisors, including Stonepath Wealth Management.

A 401(k) review from an external firm may encompass ongoing management or general guidance, but it does not necessitate funds being moved or transferred; additionally, this can be done without any tax consequences to worry about.

The Benefits of a 401(k) Review

The benefits of having a 401(k) review are numerous. The most fundamental benefit? As an investor, you may not know how much your account is actually making. If you do, you may not be satisfied with the results. A professional review is the first step toward more active management, which can yield a more strategic—and perhaps successful—investment strategy.

Additionally, a review may lead to the sobering revelation that the 401(k) is simply not the best investment vehicle for you. In the minds of many financial professionals, an IRA is generally the more advantageous retirement account type. A review may point to the shortcomings of a 401(k) and the need to roll those funds into an IRA—something your financial advisor can assist with.

Getting a Second Look

Ultimately, your retirement plan is something far too valuable to neglect or to ignore—and there is no harm in getting a second look from a financial professional. That is why regular 401(k) review is recommended—and why Stonepath Wealth Management is happy to offer this service. Contact us today to schedule your own 401(k) consultation.

Disclaimer: Please be sure to speak to your advisor to carefully consider the differences between your company retirement account and investment in an IRA. These factors include, but are not limited to changes to availability of funds, withdrawals, fund expenses, fees, and IRA required minimum distributions.