Options, options, options… not usually the problem with a 401(k). This creates the complicated task of getting appropriately diversified with few options. Here are some things to review in the process:

• Most 401(k)s will offer an online assessment. This will allow you to understand what your diversification should look like by asset class.
• Review the number of asset classes offered in your individual investment options. You will need at least six to be diversified.
• If your retirement plan does not provide enough options to get fully diversified, then utilize an offered allocation fund offering to align with your risk tolerance.
• If there is more than one option per asset class, review more than performance:  Check the expenses, holdings, manager tenure (to provide relevance to performance) and standard deviation for the fund to make a good long term decision.

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Always remember that while this is an investor education piece, this does not trigger or relate to trading activity on your account with Financial Future Services. This article is for informational purposes only and not intended as a recommendation. Each investors circumstances are different and a full review of you situation is necessary for a recommendation.

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