I have reviewed many retirement accounts for others and I normally see a hodge-podge of default selections, long-forgotten transfers, and unopened statements. This is partly because most people have no interest in investing and fewer still have the motivation to pay much attention to their accounts. While this is understandable, your investing success will have a dramatic impact on your lifestyle in any potential retirement future. The financially literate have some way to manage their accounts. New online services make it easier and cheaper than ever before.
Traditional money managers are expensive in two ways. First, in the fees and commissions that they charge you, and second, corralling your investments into their firm’s poor-performing funds with high expenses. Online services typically charge less than half of the fees and have no vested interest in which funds that they select for you.
There are several online money management services that you could consider, but I just came across a new one that you can use for free – plus it has 401(k) plan recommendations. This company, FutureAdvisor.com has a fee-based option where they manage your money for you but they also have a free version for anyone who is willing to make the transaction changes for themselves.
For those of you who not interested in becoming investing experts, you must hire some kind of money manager to make the most of your hard-earned money. There are many low-cost options that are online today and now you even have a free one to consider.