Some Retirement Advice Is Terrible, Short-Term, and Treats You Like A Yo-Yo

If you received the September 7th copy of The Wall Street Journal, you would have encountered Jason Zweig’s article on the bottom of the first page titled: “Trading Your 401(k) Account: How Bright Can It Be?”

The article discusses the rise of services that encourage you to think short-term within the confines of your 401(k) account, offering advice that is designed to shift strategies every month. Here are the money quotes form Zweig’s article:

“Your 401(k) retirement plan is supposed to be the ultimate long-term holding, with a horizon that for many investors extends for decades. Even so, advisory services are springing up to help you manage your 401(k) over the short term, urging trades every few weeks…

“We think buy and rotate is better than buy and hold,” Mr. DiBerardino says. “We don’t think it’s prudent for T. Rowe Price to suspend people from trading their funds”…

An

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