The Retirement Plan Rule You May Not Know About

July 21, 2011 - PRLog -- For many people investing in a company sponsored retirement plan makes sense. If your employer offers a retirement plan(401k or 403b) it's usually advantageous for you to participate in it, and if they match a portion of what you contribute then it's well worth it. The challenge most people have with their employer sponsored retirement plan is not necessarily saving in it. The challenge for investors is often to decide how to invest their money within the plan. I always advise my clients to invest in funds that are consistent with their risk tolerance. So as an example, if your risk tolerance is low, you may consider investing in a short term bond fund, a general/fixed account or even a moderate allocation fund. However, the problem that many 401k's and 403b's have is a lack of sufficient investment options to allow for full diversification or opportunity to capture investment gains.

Frequently, an employee with a 401k or 403b may miss out on an investment opportunity simply because his plan doesn't offer a particular investment as an option. Take for an example the recent rise in the price of gold. Over the years, the price of gold bullion has increased substantially. Many employer sponsored plans do not have an option to invest in this commodity. As a result an investor would have missed out on gold's appreciation and an opportunity to see the retirement plan grow faster.

So what's the solution? How can you take advantage of investment opportunities while still employed and participating in your plan?

Want the answers to these and many more important investment questions?
Come visit me at http://www.chrisnicholsadvisor.com or call 954-418-7307 for help now!

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Chris Nichols has been in the financial services industry for over a decade. He has enjoyed a long tradition of providing clients with a high level of financial advice and trust. He specializes in the areas of investment management and retirement planning.

Chris holds the FINRA Series 7 (General Securities Registered Representative), Series 6 (Limited Representative Investment Company Variable Contracts), NASAA Series 66 (Uniformed Combined State Law) and Series 63 (Uniform Securities Agent State Law). Chris also holds a Life, Health and Variable Annuities License.

Chris specializes in assisting those nearing retirement and in their retirement years. He has written numerous publications designed to help people avoid making common mistakes with their everyday financial decisions. In addition, Chris has held hundreds of public and private investment planning workshops that are designed to inform and educate individuals about investing and retirement planning.