A 401(k) plan offers several benefits that can help you save for retirement effectively. Tax advantages, employer matching up to a certain percentage, compounding investment returns, just to name a few.
Your McKesson 401(k) plan offers a standard set of mutual funds which may be somewhat limited depending on your long-term needs as you save towards retirement. Opening a Fidelity BrokerageLink® account within your 401(k) plan provides you with the opportunity to select from thousands of mutual funds beyond those offered directly through the standard/core plan options.
Here are five reasons it is beneficial to do this now:
- Accessibility: Certain funds may have minimum investment requirements or restrictions that other funds do not. A larger number of options gives you more flexibility in how you invest your money.
- Diversification: A wider selection of mutual funds allows for greater diversification across different asset classes, sectors, and geographies. This can help reduce risk, as the performance of different investments can offset each other.
- Investment Strategies: A custom investment strategy tailored to your individual needs, such as age and investment horizon. It is important that your overall investment strategy not be limited to a small number of available mutual funds within your standard 401(k) plan. With the help of an advisor, it is easy to coordinate your overall investment strategy with the full complement of all the mutual funds within BrokerageLink®.
- Cost Efficiency: Some funds have lower expense ratios than others. A larger universe allows you to find cost-effective options that can enhance your returns over time, as lower fees mean more of your money is working for you.
- Market Adaptability: Having access to more funds means you can readily adjust your portfolio to changing market conditions, economic cycles, or personal circumstances.
Overall, a diverse selection of mutual funds can provide greater opportunities for growth while managing risk and tailoring your investment approach to better meet your individual financial objectives. It is not difficult to open a BrokerageLink® account within your 401k plan at Fidelity. The results achieved by utilizing the additional funds have only been beneficial to our client’s long-term investment results.
