An investment plan does not have to fit inside of someone else’s box; the traditional 401(k) plan that works for everyone else may not be quite what you had in mind, especially if you appreciate all that exchange traded funds (ETFs) have to offer.
John Spence for The Wall Street Journal reports that some financial advisors are recommending ETFs outside clients’ corporate retirement plans as a low-cost way to round out people’s investment portfolios. Many investors get caught up in whatever is being offered through their employment plans, and loking elsewhere for alternatives is a good choice.
The traditional 401(k) plan is made up of mutual funds that focus on U.S. stocks and bonds, and internatioanl stocks from developed nations. These catergories are limiting, not to mention expensive, and many advisors recommend 5%-10% of a portfolio being allocated to commodities, such as gold.