Soul wrote:JudasIscariotTheBird wrote:Soul wrote:
You have a point. I don't have a ton of options on the 401k front. I think they give us 20, 30 funds to choose from (guessing). Without the options available, it kind of makes managing it easier.
I'm not going to pretend I'm all over this though. I make periodic decisions, usually call them up (whether it's their accounts or others), and ask their advice before I do it.
In my humble opinion, 20-30 options (assuming at least some of them are ultra-low-fee index funds) are more than enough options, and probally actually a few too many. And while there are certain to be a lot of little decisions here and there, your investments should be something you can largely forget about. News is much more likely to cause you to make a bad decision than a good one. Buy it, sit on it, and only change course if something in your life changes and it makes sense to adjust for it. Again, if you don't mind my asking, what are the periodic decisions you make that you ask their advice about?
It's a lot to bring up here, but basically my company offered us some vesting stock options, and we have a house, then investments with them, etc. I have a look at the 401ks once per year and typically ask them advice on if I should re-balance, what fund mix do they recommend if I do re-balance. So I'll ask them things like, hey does it make sense to put more principle towards the house or more towards investments, adjust the 401k allocation or withholding (which we are maxxed out now anyway, but you get the idea). I like that the answer is not always, give us your money. And sometimes I flat out don't follow advice. I want my home paid off, call me old school and stupid, but that's what I want and I put my foot down on that.JudasIscariotTheBird wrote:News is much more likely to cause you to make a bad decision than a good one.
So true. I follow a long term strategy which provides some protection against the news. But I'm getting closer to retirement and I worry about what happens when I don't have enough runway left to say that I'm following a long term strategy.
Well, if they are giving you advice (it sounds like they suggested you invest your money instead of paying off your mortgage...which was probably the right advice depending on your mortgage rate and how financially stable you are...but that's really just a matter of how much leverage you are willing to take on) and you aren't even using it, you aren't really losing too much by ditching them, right? For your stock options, you might not have a choice for where they are held, so obviously this "ditch the brokers" advice can only go so far. They are pretty good at getting their hands on money that comes directly from employers.
But as far as your concerns about rebalancing and shorter-term investing, Vanguard and Fidelity have lots of information and fun little surveys and charts that can suggest how someone with your goals should allocate between stocks and bonds, and how to reblanance. Rebalancing is, imo, largely an over-rated if slightly favorable thing that you don't HAVE to waste too much mind power over.