401k Investing for Newbies and Nerds
There are one hundred and thirty million American workers who collectively own $35 trillion in their 401k and related retirement accounts. The owners of these accounts face both challenges and opportunities. The largest opportunity is that their accounts are investment accounts, not savings accounts, and for the past three decades they have grown in the low double-digit range.
The main challenge 401k owners face is that there are required to make their own investment decisions by choosing from a limited menu of mutual funds.
These 130 million self-directed retirement account owners can be divided into 3 distinct categories. The first are those who could care less about their money and are willing to just let nature take its course. The second group, NEWBIES, are inexperienced in the investment process, but are willing to become engaged in the management of their hard earned dollars. The third group, NERDS, are those who have a modicum of investment expertise and are willing to devote the time and energy to expand their investments skills.
The mission of my podcast is to motivate and educate 401k NEWBIES and NERDS on how to optimize their 401k experience. I have a 62-year relationship with the stock market. I have been a stockbroker, finance professor and individual investor. Ten years ago, I appointed myself to the position of 401k guru extraordinaire. I have no investment products to sell. All I have to offer are the objective observations of one who has been there and done that.
401k Investing for Newbies and Nerds
Season 2 Episode 6 An Interview with a level 10 401k Nerd
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In this episode I spent time with Jake Olsen talking about his 401k experiences. Jake is a millennial and a Level 10 401k Nerd. I have known Jake for over 15 years. When we first met, Jake was a college student majoring in accounting & finance. Following graduation, he took a job in the finance department of a local Fortune 500 company. During his time there, Jake studied for and completed the Chartered Financial Analyst program.
8 years ago, Jake left the Fortune 500 world and became a co-director at a consulting firm whose mission is to help CEOs at small to mid-sized companies grow their businesses by tying together the key components of financial planning, budgeting, performance analytics, strategy management, and deal management.
Jake has 15 years’ experience in managing his own 401k. One with a large corporation and one where he was able to provide input. I found the time I spent with him constructive and informative. One issue in particular I found insightful was his perspective of the value of academic training when applied to the real world.
I am sure you will find his responses to my questions enlightening, and hopefully they will open some new doors in your world.