401k Plans Open Up


The U.S. Department of Labor is trying to make costs more transparent for 401(k) particpants, and new rules to shine a light on fees goes into affect tomorrow. What does this mean for investors? Not much, in our view. Although fees are a very important component to a portfolio's overall return, it should not be the main focus of your selection process. Make it a data point to consider, but by all means, successful investing never centers around the expense ratio of an investment, but rather, the value the investment offers.

Is and iPad expensive at $800, for example? Many would say, "yes;" however, Apple will sell a projected 40+ million iPads in 2012 making it the clear leader in the tablet category. Why? Consumers may in fact believe they are getting a great deal in paying $800 for the device given the amount of value they derive from an iPad.

So focus on the benefit to owning your investments - it adds diversification or it has the potential for above average gains, etc. -  and let the fee analysis come later.

401k Rule Changes


Mark S. Starosciak, Managing Partner & Financial Advisor

Infinium Investment Advisors


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