From
Your Perspective:
Managing your 401(k) portfolio
Professional 401(k)
guidance
When you’re building a career, a family, or both, finding a balance between immediate financial needs and long-term retirement goals can be a challenge. Fortunately, there are a variety of different resources you can turn to for guidance, from online tools for a quick assessment to building a working, long-term relationship with a professional financial adviser.
Online resources offer a quick, easy way to evaluate where you stand, and are usually convenient to access. Some sites provide recommendations free of charge, while others may charge for personalized advice. But some sell investments as well, so it’s important to weigh their recommendations against the potential profit they stand to make from your investment decisions.
Working with an experienced retirement planner can help you with your
401(k)
as well. Your employer may have one or more specialists on staff whose job is to provide information, if not retirement advice. The financial institutions where you have checking or investment accounts may also provide advisers — or you may already have a good working relationship with one or more financial advisers. Just make sure to ask these advisers whether they’re qualified to work with you on retirement issues. You should always ask for professional credentials and a summary of retirement-planning experience before taking someone’s advice.
When you’re choosing an adviser, you should decide on the qualifications you’re seeking. Two of the most important are his or her credentials and experience. A minimum of five years’ experience and a professional certification or license isn’t too much to ask. And remember that you have to be comfortable with your adviser as well as confident of his or her ability.
