“We offer guidance to people of any age who want to confidently invest their retirement account on their own.”
RetirementInvestor.com contributes a tragic real life client story to this Forbes.com article in Section 6 entitled “The Devastated Non-Diversifier”.
Wayne Connors from RetirementInvestor.com builds portfolios and teaches investors how to use investing tools for a living. How do you avoid some common mistakes people make in volatile, 2016-style markets? What’s important to know (and NOT know) in today’s markets. How do you keep fees low while still making the right moves? Wayne will cover that and more.
An Interview By ETF.com’s Cinthia Murphy – Wayne Connors is an Air Force veteran who went on to become a registered fiduciary and work in private wealth management before he set out to create a new business model centered on helping do-it-yourself investors go it alone.
The 401(k) plan has long been one of the most useful and advantageous cornerstones of any investor’s retirement plan. Taking advantage of it used to be as simple as parking your weekly contributions in the plan and watching as they — and your company’s matching contribution — added up to a modest nest egg from which you could start drawing as soon as you retired.
Well, times have changed and so have some of the basic rules of 401(k) saving, which has led some investors to make costly mistakes with the plans.
• Who is paying the cost of running the 401k plan – you or your employer.
• What percentage of your 401k balance is going to fees or expenses.
• If your employer offers a self-directed option.
• Do you pay more in fees the bigger your account gets.
• How you can make the best of a bad plan.
Several recent research studies have suggested that women are more likely to make money in the stock market than men. A study by Barclays Wealth and Ledbury Research showed that female investors have the tendency to “buy and hold” their investments because they tend to focus more on the longer-term, rather than attempt to “time the market”. This gives them a huge advantage over many male investors, since trying to time the market has been shown to lower your investment performance over the long run. For example, had you invested $1,000 forty years ago in the stock market and just stayed in during all the ups and downs it would have grown to $58,000. Had you missed just the best 25 days in the market your $1,000 would have grown to only $14,000.
Exchange-traded funds, or ETFs, are becoming more popular as investors are drawn to their lower fees and as more options are being offered. ETFs have been around since 1993, but their popularity has soared in the past few years as more company 401(k) plans are offering them as an option.
The total amount of funds in ETFs totaled $200 billion about ten years ago and investors could only chose from a few dozen options, said Wayne Connors, chief portfolio manager of 401k Investor, a Hartford, Conn. company which allows investors to build their own portfolio using ETFs within their existing retirement accounts. Assets in ETFs now exceed $1.7 trillion, and there are over 1,500 ETFs for investors to choose from.