I have been an investment advisor for over 30 years. I see really smart people do really dumb things in their company 401(k) retirement plan account. Here are the top five biggest mistakes that I have seen Minnesota investors make.

First, individual company 401(k) retirement plan participants think more than they do. They have good intentions to review or make changes in their company 401(k) retirement plan account, but life gets in the way every time.

You can make meaningful changes to the way that you manage your company 401(k) retirement plan account. Think less and do more.

Second, individual company 401(k) retirement plan participants invest in the most popular mutual funds on their company 401(k) retirement plan menu. They invest the same way everyone else does. These individual investors get the same poor investment results that everyone else gets. The annual investment returns of mutual fund investors are terrible. Don’t fall into the same category.

Third, individual company 401(k) retirement plan participants give up too easily. They think that they can never become good investment managers of their company 401(k) retirement plan money.

This is not true. Most individual investors just need gentle reminders from a knowledgeable investor professional in order to be successful investors over the long term.

Fourth, individual company 401(k) retirement plan participants never ask questions. They are afraid of sounding or looking like they don’t understand stock and bond market investing.

Do you ask a salesperson in your favorite store questions? That is why you have a favorite store in the first place. Ask questions of every investment advisor that you work with.

Fifth, individual company 401(k) retirement plan participants hang on to long-held investment management beliefs.

The most common investment management strategies are buy-and-hold, rebalancing, diversification, and asset allocation. The chances are that you are investing with one or more of those investment management strategies right now.

Not all of these investment management strategies can be applied successfully by every individual investor. You are a different investor; even different than your spouse. Your company 401(k) retirement plan account investment strategy should reflect those differences.

Ric Lager

Lager & Company, Inc.