Do your 401(k) investments support your goals?

Key Points

  • As part of a financial planning relationship, your Ameriprise advisor will provide personalized recommendations for a mix of investments, including those in your 401(k) accounts.
  • Defining the time frames to achieve your goals helps you and your advisor prioritize them accordingly.
  • Consider using Total View to view and organize all your financial accounts in one secure place.

“Have I chosen the right 401(k) investments?”

It’s a common question. Given 401(k) accounts may represent a substantial portion of your total retirement savings, the answer depends on your unique financial goals. As part of a financial planning relationship, your advisor will provide you with goal-based advice that considers all your assets, including 401(k) accounts.

This includes personalized recommendations for a balanced, long-term investment portfolio that factors your risk tolerance, time horizon, tax situation and a range of market conditions. The following summary can help inform conversations with your advisor. 

Long-term goal

To achieve your long-term goals, your investments need to grow beyond your regular contributions. Higher returns help you stay on track. You also want to keep up with inflation — the annual increase in the price of goods and services. In general, contributing to growth investments requires:

  • A longer time horizon to enable the value of your contributions to increase
  • Tolerance for risk, to weather fluctuations in asset prices over the long-term

Within your 401(k) or other qualified retirement plan with your employer, consider growth-oriented mutual funds that seek capital appreciation by investing in stocks (equities).

Medium-term goal

For medium-term financial goals, focus on preserving capital and generating income (e.g., dividends) from your investments.

This investment time horizon is typically shorter than a complete market cycle. Opportunities to recover any large losses may be limited, but it’s enough time for investments to potentially outperform inflation. The allocation for medium-term goals seeks to limit volatility by using a diversified portfolio of both high-quality stocks and bonds.

Short-term goal

To fund short-term goals, consider investments that keep your principal stable, maintain liquidity and generate income. Conservative assets such as cash, high-quality bonds and stable value accounts are highlighted. This is due to the short timeframe to achieve the goal, and the lack of opportunity for the investments to earn back any large losses.

Make investment decisions with your Ameriprise advisor

Your 401(k) account is part of your larger financial picture. Your advisor will review options and offer recommendations from the investment lineup available in your 401(k) that are suitable for your needs and goals.  

Ongoing, your advisor will regularly review your goals, progress and investments and continue to help you maintain a diversified, balanced portfolio that reflects your goals. You can always track your accounts and progress — anytime, from any device. Talk to your advisor to get started.

Consider using Total View to view and organize all your financial accounts in one secure place. This can help make it easier for you and your advisor to maintain a diversified mix of investments across your entire financial picture.