One of the areas of an investors portfolio that sorely lacks proper attention is the 401(k) plan. According to Chip Workman, Lead Advisor with Cincinnati-based The Asset Advisory Group, a 401(k) is often the single largest asset an investor has for their retirement savings. These accounts are taken for granted or simply ignored far too often and investors have an obligation to themselves to take an active role in their retirement planning, Workman says. While investment options may be limited, there are seven steps that anyone with a qualified retirement plan can and should take to maximize efficiency and return.

Pay close attention to underlying mutual fund fees, the fund companies available and the asset classes (i.e. US Large and Small cap stocks, International stocks, Real Estate & Fixed Income) available.

Cincinnati, OH (PRWEB) August 27, 2009

One of the areas of an investors portfolio that sorely lacks proper attention is the 401(k) plan. According to Chip Workman, Lead Advisor with Cincinnati-based The Asset Advisory Group, a 401(k) is often the single largest asset an investor has for their retirement savings. These accounts are taken for granted or simply ignored far too often and investors have an obligation to themselves to take an active role in their retirement planning, Workman says.

Using many of these same tools, take an in depth look at the investment options available, advises Workman. Pay close attention to underlying mutual fund fees, the fund companies available and the asset classes (i.e. US Large and Small cap stocks, International stocks, Real Estate & Fixed Income) available.

ALLOCATE

Workman says investors should schedule a meeting with their personal financial advisor or plans administrator to discuss these items and develop the best percentage mix of stocks and fixed income funds based on time horizon and risk tolerance. Studies show that proper asset allocation is one of the key factors in meeting investment goals, he says.

INVEST

REBALANCE

Evaluate 401(k) statements quarterly to maintain desired allocation. As markets rise and fall, so do asset allocations which will shift from the original plan. When this occurs, rebalance your portfolio. Regularly check for new investment options that may come at a lower cost or offer better diversification.

ASK FOR HELP

Retirement planning can become overwhelming as rules, investment options and administrators change — and change often. Workman advises investors to seek an advisor that can help ensure that investors are making the best possible choices for a successful investment experience. Make sure you talk to someone who is held to a fiduciary standard, and thereby required to act in your best interests, says Workman. Failing that, there are a number of great resources on the internet to answer any questions you may have.

ROLLOVER

If you have one or more 401(k) plans from old jobs that are floating around out there, take the time now to move those into a rollover IRA, says Workman. If you are not working with an advisor, open a retail account at a discount broker where you will have a wide array of low cost investment options available to you. Go through the same steps mentioned above to determine how best to invest at the lowest cost possible.

The process can seem overwhelming at times, but taking an active role in your own retirement through this step- by-step process is one of the best investments in economy.

About Chip Workman and The Asset Advisory Group

www.taaginc.com for more information about Mr. Workman and the rest of The Asset Advisory Groups team of advisors and staff.

NOTE:

When you need a knowledgeable, professional to speak on complicated financial topics in an easy-to-understand and lively way, please call Chip Workman and the advisors of The Asset Advisory Group.