What Is Your 401k Invested In?

Do you have a 401k? If so, do you know what it is invested in? The standard investments inside of a 401k are stocks and bonds. Most likely you are invested in variation of stocks and bonds. Regardless of what you are invested in you should know what those investments are because you may come to find out that you are invested in some more risky options that you otherwise might not want to be invested in. One thing you may come to find out or may already know is that you are invested in your own companies stock. 

Only 12% of plans make matching contributions using company shares which is down 45% from 2001. Even though this number is down there are still many plans that let workers invest in employer share as an option. Those that have the option for company stock it typically represents around 14% of employees' portfolios. 

While 14% of a portfolio is nothing to be too worried about there is still a higher risk in holding company stock inside a 401k. The following are a few suggestions if you are investing in company stock with your 401k:

There are so many different investment opportunities available to retirement accounts and being able to take advantage of them can greatly improve your retirement and retirement portolio. 

If you are interested in a self directed 401k talk with your employer to see if this is something available to you. Feel free to contact us for any more information as well as help setting up a self directed 401k.