Investing money in a 401k can assist you in long-term wealth creation. Learn to manage your investments with Bloom University.

7/14/10 ~ New GM 401(k) recomendations just posted!

Check back soon -   specific 401(k) recomendations for Ford, Chrysler & DTE are currently being updated!

Current Employees

Employees who have access to a 401(k) plan at their employer have a great opportunity to save for retirement with the added benefit of lowering the participant's income tax while growing tax-free until employees withdraw them at retirement. In addition, many companies match a portion of the employee's contributions with either company stock or additional dollars, making these plans even more attractive.

However, even with all the advantages 401(k) plans offer, many plans have so many investment options that employees are not sure how to construct a portfolio that matches their objectives. As a result, employees often make inadequate investment decisions based upon emotion and lack of appropriate knowledge, thus potentially hindering their chance of accumulating a successful retirement portfolio.

Click on any of the company's listed on this page to access our specific recommendations.We plan to add more company 401(k) plans in the coming months, and will update our recommendations periodically.

To help employees of select Detroit-area companies make better 401(k) investment decisions, the Investment Committee at Bloom Asset Management has made available its proprietary investment allocations, based upon certain risk characteristics, using available choices within that company's 401(k) plan.

When looking at the various plans, we have designed our recommended portfolios based upon three distinct risk profiles: Conservative, Moderate and Aggressive.

Obviously, these are general recommendations, and do not take into account more specific details of an employee's financial situation, such as long-term goals and objectives other than retirement, the number of years before the employee plans to retire, and other investments outside of the 401(k) plan. In addition, these recommendations are meant for those who are currently employed by the respective employer, not for retirees or ex-employees.

Investments Outside Of Your 401(k) Plan

On the topic of investments outside of your 401(k) plan, these are really important because many times an investor can fill gaps that exist within the 401(k) plan. For example, we recommend a broad diversification strategy including several alternative asset classes, such as REITs, Energy/Commodity Funds, International Small Caps, International Bonds, etc. Most 401(k) plans do not have options offered in these areas, thus, those outside investments become very important in being able to implement a well-diversified asset allocation such as we recommend for our clients.

Lastly, we recommend that you consult an independent financial professional, such as the staff of Bloom Asset Management, if you need further clarification so you can ensure the investment portfolio you develop is in line with your goals and objectives, and risk tolerances.

If you have already retired, or moved to a different employer, you should handle your 401(k) differently!

If you are currently retired, or have gone to work for another employer, and still maintain a 401(k) plan with any of the company's listed on this page, then you have further flexibility in constructing a more diversified portfolio. In fact, our general recommendation is that you should rollover your 401(k) assets on a completely tax-free basis into an IRA rollover account with a company that offers a robust no-load, no-transaction-fee mutual fund marketplace, such as Charles Schwab & Co., Inc., Vanguard or T. Rowe Price. That way, you can invest into a much broader selection of no-load, no-transaction-fee funds and your investments will not be dictated by the whims of your ex-employer. Furthermore, you can better coordinate your other IRA and non-IRA investments through one low-cost company rather than spreading your investments across a number of different companies with different statements, websites and customer service contacts.

If you have not yet rolled over your 401(k) assets, this is where Bloom Asset Management can truly help you. For investors who want the help of a professional in rolling over their 401(k) or coordinating their overall investment plan, we offer Investment Management services as well as Financial Consulting services. For more information on our services, please review the "SERVICES" section of our website by clicking on this link. To make an appointment to meet with one of our professional staff for a no-strings-attached get-to-know-you meeting, please contact Delilah Caputo at (248) 932-5200 or via e-mail at Delilah@BloomAssetManagement.com.