Switch To Advisor and Institutional Site  |   Contact Us

Invest Now
,

Shelton 401(k) Pro-Tip #8: Understand the Risks in Your 401(k) Investments

401(k) Professional tips to help you save for your future – 8 of 20

It is probably fair to say that most folks know that a company-sponsored retirement plan is one of the most powerful weapons they can have in their investment arsenal. Yet we know that many are stressed out about their 401(k) plan. Why? Because while a company might provide a way for you to save for retirement, its job is not to help you manage the investment risk in your account.

No one will argue how important and necessary a 401(k) plan is for retirement, but with such a beneficial investment opportunity comes inherent risks — from choosing appropriate funds to understanding hidden fees. So, what can you do to ensure your 401(k) is working hard for your financial future and is not carrying too much risk?

Here are a few potential 401(k) risks and ways you can avoid them:

  • Improper Allocation: 401(k) values can rise and fall with the markets, meaning they offer no protection from loss — no matter how soon you need the money. The key to avoiding this risk is to maintain the proper asset allocation for your risk tolerance level. Examine the investment options offered by your company and be sure diversify your choices consistent with your risk tolerance.
  • Turning on Autopilot: Because of the many decisions that come with starting a 401(k) account, many people employ a “set it and forget it” method with their plan. In a matter of a few years, those who neglect their 401(k) may realize that their account no longer reflects their risk tolerance. Take the time to create a 401(k) strategy and check in with your account to rebalance on a regular basis.
  • Lack of Investment Guidance: While a robust lineup of investment options is good, too many can easily confuse and overwhelm investors. Without sufficient investment knowledge, employees may choose a little of each and end up with a portfolio that is not diversified or appropriately aligned with individual needs.

So, are you on track toward your retirement goals or do your strategies need adjusting? We encourage you to check with your advisor to make sure your retirement strategy can get you where you want to go when you want to get there. Check out Shelton Capital’s library of 401(k) Educational Videos to help you make good choices and stay on a good retirement track.

Here’s to your success!

Author

  • Josh Fudge joined Shelton Capital Management in 2019.  He is a member of the Advisory Services Team with a focused responsibility on sales and marketing initiatives.

    Prior to joining Shelton Capital Management, Josh held various roles in the investment industry most recently with RBC Wealth Management where he was responsible for investment analysis and client growth. The majority of Josh’s career has been focused on sales and distribution as a Director with WHV Investments, a VP at SteelPath/OppenheimerFunds, and various positions at Janus Capital Group. Away from work he enjoys skiing, hiking, and spending time outdoors with his wife, three children, and their dog Bailey.

    Josh is a graduate of Miami University (Oxford, OH).

Published on

by

Josh Fudge
Categories: ,
Tags:

Newsletter signup

Available Sites

For Financial Professionals

The information contained in this section of Shelton Capital Management’s website is intended for use by Institutional Investors in the United States only. It is not intended for use by non-U.S. entities or retail investors. "Institutional Investor" means any:

  • person described in FINRA Rule 4512(c), regardless of whether that person has an account with a FINRA member, includes;
  • a bank, savings and loan association, insurance company or registered investment company;
  • an investment adviser registered either with the SEC under Section 203 of the Investment Advisers Act or with a state securities commission (or any agency or office performing like functions) or;
  • any other person (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million;
  • governmental entity or subdivision thereof; employee benefit plan that meets the requirements of Section 403(b) or Section 457 of the Internal Revenue Code and has at least 100 participants, but does not include any participant of such a plan;
  • qualified plan, as defined in Section 3(a)(12)(C) of the Act, that has at least 100 participants, but does not include any participant of such a plan; FINRA member or registered associated person of such a member; and, person acting solely on behalf of any institutional investor.

By closing this window and entering the website, you expressly acknowledge that you have checked and confirmed that you are accessing this site from the United States for purposes of acquiring information as an Institutional Investor as defined above.

For Institutions and Consultants

The information contained in this section of Shelton Capital Management’s website is intended for use by Institutional Investors in the United States only. It is not intended for use by non-U.S. entities or retail investors. "Institutional Investor" means any:

  • person described in FINRA Rule 4512(c), regardless of whether that person has an account with a FINRA member, includes;
  • a bank, savings and loan association, insurance company or registered investment company;
  • an investment adviser registered either with the SEC under Section 203 of the Investment Advisers Act or with a state securities commission (or any agency or office performing like functions) or;
  • any other person (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million;
  • governmental entity or subdivision thereof; employee benefit plan that meets the requirements of Section 403(b) or Section 457 of the Internal Revenue Code and has at least 100 participants, but does not include any participant of such a plan;
  • qualified plan, as defined in Section 3(a)(12)(C) of the Act, that has at least 100 participants, but does not include any participant of such a plan; FINRA member or registered associated person of such a member; and, person acting solely on behalf of any institutional investor.

By closing this window and entering the website, you expressly acknowledge that you have checked and confirmed that you are accessing this site from the United States for purposes of acquiring information as an Institutional Investor as defined above.

Important Terms And Conditions

The information contained in this section of Shelton Capital Management’s website is intended for use by individual investors in the United States only. It is not intended for use by any person or entity in any jurisdiction where such use would be contrary to applicable law or regulation. For purposes of this section, an "individual investor" means a retail investor. Under Shelton Capital Management’s retail/institutional guidance, retail investors include prospective investors who invest in Shelton funds directly and all current fund shareholders. Under FINRA’s retail communication framework, a retail investor includes any person other than an institutional investor, regardless of whether that person maintains an account with the firm.

By accessing this website you acknowledge and represent that:

  • you are located in the United States;
  • you are accessing this website for purposes of obtaining information as an individual investor as defined above; and
  • you are permitted under applicable laws and regulations to access the information contained herein.

Before investing, investors should carefully consider the investment objectives, risks, charges, and expenses of any fund. This and other important information can be found in the prospectus and summary prospectus, which should be read carefully before investing. To obtain a prospectus, visit sheltoncap.com/literature, or call (800) 955-9988.

All investments involve risk, including possible loss of principal. Past performance does not guarantee future results. Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management. Investments are not FDIC insured, are not bank guaranteed, and may lose value.

Please read through all of the Terms and Conditions of Use above to continue