Questions and Answers
Q. I am close to retirement and will probably roll my 401(k) account over to an IRA rollover soon. Can My401kPro continue to supply me with the same type assistance when I do? Also, can you offer any suggestions on rolling my account over?
A. As long as you will be investing in a fixed menu of options, we can assist you. The best place to roll a 401k account is probably into a mutual fund company - preferably a no-load fund company although there are good load funds around such as the American Funds group. We strongly suggest that you select a mutual fund family that offers a large selection of funds, e.g., 10 or more, that represents the various market groups, i.e. large cap, growth and income, small cap, mid cap, international, etc. We would add here also that we can assist anyone investing within a mutual fund family of funds whether or not they are in a retirement plan.
Q. Can you assist me if all I want is income from my investment portfolio?
A. No. We offer assistance to those who want some degree of growth to their portfolio. In fact, with greater life expectancy and the high cost of medical assistance, most people will probably need some degree of growth in their investments even as they approach and enter retirement.
Q. Does My401kPro or its advisor receive any income from other sources as compensation for using certain products (mutual funds, etc)?
A. No. My401kPro and its advisor, J. Lyons Fund Management, Inc. are totally independent and receive no income or other incentives from any entity for using any product or service.
Q. My 401k plan contains an option to invest in my company's stock. Can your analysis include it in the ranking of investment options available to me?
A. Our Fund Ranking process is best geared to mutual fund options. As such, we feel that including individual stocks in the ranking table is inappropriate. We would strongly suggest, however, that you refer to our comments regarding owning company stock within your retirement plan.
The 6 Most Common 401(k) Investing Mistakes
Q. Can you assist me in selecting the most appropriate funds to invest in if the mutual funds within my company's plan are generic funds whose prices are not published daily?
A. To optimize our accuracy in ranking your fund options, we must be able to find the exact price of your fund on a weekly basis. However, often, we can find a similar fund to use as a substitute for the type fund you describe. For example, if your fund is called the "Mid Cap Growth Fund", we can use the S&P Mid Cap Growth Index as a substitute for your fund. Most of the time, this will suffice in obtaining rankings that will be most adequate for practical application. We will tell you if we cannot effectively rank any or all of the assortment of mutual funds in your plan.
Q. Can My401kPro provide me with personalized advice such as financial planning?
A. No. My401kPro is not acting in the role of an Investment Advisor or a Financial Planner. Because My401kPro is set up to offer only general information about investing in your 401k plan, it can provide such information at a very low cost. To function beyond that role would be in violation of the regulations under which it is operating. It also would also be impossible to offer this service at such a low cost. As such, we can not and will not respond to any questions of a personal nature.
Q. How can I tailor the information you supply to apply to my personal situation?
A. Read the section on Risk Tolerance and/or consult with a Financial Planner to determine what risk level you feel applies to your situation. When selecting which mutual fund options to invest in from our Fund Rankings, select mainly those that fall within that risk level. Also, be disciplined about selling any of your options once they fall below the prescribed threshold. Adhering to such discipline plus following our guidance in the Equity Allocation Target will by themselves significantly reduce the risk of loss.
Q. How can My401kPro reduce the risk that might arise from a terrorist attack or other negative news event?
A. Unfortunately, it can't nor can any other investment approach do so. However, special "Alerts" will be issued when any significant change is warranted in your investment position. You will be notified by email that an "Alert" has been posted to the My401kPro website when our Market Indicator has changed or when other time-sensitive guidance of a general nature is warranted.