If you have a 401(k) through your employer you know that very commonly we actually have investment choices. Let's say you can choose between a bond fund, maybe another option is a stock fund that has some growth stocks or value stocks, and then you have an international stock fund. We usually get a variety of certain types of funds that you can choose from. This is very typical with your 401(k).
What we have been finding more and more is a lot of you actually have another option. Rather than choosing from the stock funds that are available. You may have something called a self-directed account, self-directed 401(k), or a self-directed brokerage account; it can be called different things.
Instead of choosing from this specific list of options and what percent you want you want to put in them. If this is what you have that is not the worst thing you just need to choose wisely. For those of you who have the self-directed brokerage option you can choose from anything that is on the market whether its a specific stock or ETF’s you are not just limited to this list. You can actually choose from anything you want to.
What's great about this is it is the best of tax planning. Because when you put money into your 401(k) or Roth 401(k) you are setting funds for the future to let them grow or if it's just a regular 401(k) you are decreasing your taxable income so you are getting the best of tax planning and also investment options that you have available to you. This is the best of the tax and investment choices that you have.
If this is something available to you and you need help deciding because you can decide from anything. Please reach out and we would be happy to help you choose these options and percentages.
