How does 401kToolworks generate its monthly investment recommendations?

Our model is based on dozens of papers and real world analysis on stock market returns. For long term investing like 401k’s – simple is better. It provides consistent returns with lower risk than just buying and holding. 

Who can benefit from subscribing to 401kToolworks? What about a 529 plan? A health savings account?

Our system keeps things simple. Besides a 401k plan, you can use the same insights in a 529 plan, or Health Savings account. All these plans have the funds required to follow our recommendations.

Why should I avoid target date funds?

Target date funds, the default choice nowadays for 401k plans simply move more of your portfolio to bonds over time. Bonds are higher risk than they used to be. Because we are not in a higher interest rate environment, bond funds inside a 401k can lose money. As people live longer, they need their money to work harder. Being in bonds will forfeit any growth in the market, while still exposing you to some risk. During periods of market turmoil, bonds may no longer be the risk buffer they once were, and they will dramatically limit your long term growth.

Is there a track record of your performance?

Yes – we have a historical performance summary that is updated regularly. You can view that here.

What are the risks? Will I lose money?

All investments have a certain level of risks and can lose money. Our system is designed to manage risk, and to minimize losses.  While zero losses are impossible, we manage risk so that losses are lower than just leaving your money exposed.

Is this considered financial advice?

No. We do not offer financial advice nor are we financial advisors. Everyone has their own risk profile. Our system is for educational and informational purposes only. We do not have access to your 401k accounts or your level of risk tolerance or financial situation.  You make the changes directly on your 401k’s website. All investments involve risk. We recommend speaking with a financial advisor before making any investment decisions.

Can I cancel my subscription at any time?

Yes, subscribers have full control and can cancel their membership effortlessly through the secure portal whenever they choose.