401k Management in San Mateo –
Timely, Actionable Advice

For many, their 401k account is the most important investment for their retirement. Despite its key role, many account holders blindly select an allocation of mutual funds based on past performance and then forget about it. Also, many holders view their 401k accounts in isolation, rather than holistically as part of their overall financial portfolio.

An experienced financial advisor can provide a 401k management plan with forward-looking financial analysis and professional advice. Having good information and taking timely actions can make the difference between major portfolio gains and substantial losses. And maybe even determine when one can retire or if at all. At San Mateo-based Gosho Financial Group, we work with our executive and managerial clients to actively manage their 401k investments as part of their overall financial portfolio. We also provide actionable information that can help them to make timely decisions, within current fund options or if allowed, with a self-directed investment account option.

And should a client change jobs or retire, we help them to roll over their 401k investments to an Individual Retirement Account (IRA) with a broader range of options to continue building their portfolio.

Why You Should Use an Independent Financial Advisor to Actively Manage Your 401k Funds

Even though recent returns may be extraordinarily high on the DJIA, S&P 500, and NASDAQ, longer-term returns have been inadequate for a sustainable retirement.

If you bought and held the three major market indexes from their peaks in 2000 through December 31, 2013, you might be surprised to see what the compound annual rate of return has been (unadjusted for inflation):

Mkt. Index Date Close Close
Annl. Compound
Rate of Return
DJIA 01/14/2000 11722.98 16576.66 2.51%
S&P 500 03/24/2000 1527.46 1848.36 1.39%
NASDAQ 03/10/2000 5048.62 4176.59 -1.36%

This is a strong reason why you need an experienced independent financial advisor who has a global viewpoint, who understands stock and bond markets, uses fundamental and technical analysis, and considers the totality of all your investments including your 401k to help you achieve your life goals with a 401k management plan.

5 Other Reasons to Use an Independent Financial Advisor

  1. Unbiased, professional analysis and active management of your 401k account. Your 401k account might be your main or only source of retirement income without income guarantee or principal protection. You might have 5 or 105 mutual fund choices. How do you know what to buy or sell and when?Here are just a few of many questions one needs to ask to determine fund selection, tactical allocation, risk mitigation and real return on investment:
    1. Are there many overlapping stocks in the funds that you hold?
    2. Was the long-term fund performance produced by the current fund manager or someone else?
    3. What is the annual portfolio turnover?
    4. If you were living on the dividends and not reinvesting, would you be receiving increasing income annually and still have principal appreciation?
    5. Can you lose money in a U.S. Government Bond Fund?
    6. If you buy and hold index funds in a long-term sideways trending market, you may be going nowhere fast.
  2. Planning, advice and reporting that integrates your 401k investments with the totality of your investments.There are often trading frequency and other restrictions that limit your freedom and flexibility to mitigate risk and maximize return. Appropriate and timely mutual fund selection and asset allocation should be integrated with your total investment portfolio holdings in light of possible 401k limitations.
  3. Economical – 1% of invested assets.A financial advisor’s management fee is minimal for 401k integration into your total investment portfolio and for financial planning investment return projections. Also, in a market that has basically gone sideways since 2000, a “buy and hold” strategy has probably produced less return than needed to meet long-term retirement goals or less income than needed to pay ever-increasing expenses.
  4. Self-directed 401k option.The ideal, but rare, plan would allow an employee to opt into a self-directed brokerage 401k account, which would open up the investment choices similar to investing outside the 401k plan. Check to see if it is available to you.
  5. Rollover convenience of your 401k to an actively-managed, self-directed IRA – workers will work for an average of ten companies in their lifetime. Each company 401k plan account could be rolled over to one self-directed IRA for consolidation of investment accounts and greater choice of investments.

Please contact us at our San Mateo office to discuss how we might help with 401k management.