We all know the biggest risk to investment accounts is performance. If the market tanks, any stock-based mutual fund in your 401k account will decline sharply, too. If bond yields remain paltry, any bond funds you own will perform poorly, too. That’s the way investing works.
But retirement investing strategies that focus only on performance also can lose you a significant amount of money — even in Wall Street’s good times.
That’s because attention to fees and logistics of your 401k or IRA plan can be just as important as picking the right places to put your money. And investors who don’t read the fine print or perform regular portfolio maintenance can see their retirement account languish, even if they have the right funds picked out.
So how do you avoid this fate?
Start by avoiding these five hidden ways your 401k plan could be leaking cash.