401(k) savers who get advice get higher returns …
Good advice is worth the price. This article points out that 401k participants who used financial advisors to help select the investments in their 401(k) get higher returns than those who choose their investments on their own. Good food for thought. Part of the improvement in performance was a result of better fund selection and part was due to improved investor behaviors.
SAN FRANCISCO (MarketWatch) — Retirement savers who sought investing advice through their 401(k) plan enjoyed a median annual return almost 3% higher than those who didn’t — even after the fees they paid for that advice, according to a new study.
Investors who looked for help online at their 401(k) plan website, enrolled in a managed account, or had at least 95% of their savings invested in a target-date fund were categorized as “seeking help,” according to the study of eight large 401(k) plans with more than 425,000 participants and $25 billion in assets, by Aon Hewitt, a consulting firm, and Financial Engines, an investment advisory firm.
Read the complete article here …