New research shows 401k plan participants would be well-served to receive the services of a fee-only independent financial advisor. A Charles Schwab study revealed that 401k participants who sought professional assistance in allocating their assets earned a significantly greater rate of return than those who did not. The data examines 2006 returns and is broken down by age group.
The study reveals the significant value-added benefits 401k plan participants receive when they are educated regarding the impact of risk, return, time and diversification. Additional value was found to be added by financial advisors who persistently rebalanced a globally diversified portfolio.