More Options For One's Retirement Portfolio

There appears to be momentum gaining behind retirement portfolios adding exchange traded funds (ETFs) to their investing mix. As discussed in a recent article ETFs Make Inroads With 401(k) Investors, low cost ETFs are slowly making their way into many 401(k) plans. “ETFs’ appeal is that they offer investors low costs and extra flexibility. Unlike open-end mutual funds, ETFs can change hands throughout the trading day. Since they mostly track indexes, which don’t tend to turn over much, ETFs don’t tend to run up capital gains taxes that are passed along to their investors.” This is good for employees and good for America too! If you work for a big company, send management this article and demand ETFs in your plan. You will be on your way to creating a low-cost ETF portfolio with an asset allocation that provides diversification.