If you’re stuck in stocks and bonds, are you really getting everything out of your 401(k) plan that you could be?
Unlike individual stocks or bonds, ETFs can be used to track entire market sectors, such as commodities or real estate. And they give investors greater flexibility than mutual funds, because they trade all day on exchanges. They’re less expensive than mutual funds, on average, because they don’t require a manager. Your cost savings over time will be significant. They also provide greater diversification – in one fund, you can get 25, 75, 200 or more stocks.
If you’re a small business owner, ING offers a 401(k) plan that’s easy to use.
So when you plan on your retirement investments, make sure to think outside of the box that you are handed, because there are plenty more options available.