I haven't paid a dime towards any management of my 401k thus far. This was a service offered to me by Voya through my company. From what I could understand the company would manage my 401k for me and make moves depending on the market. Im guessing from both of your responses that it isn't a good idea. I just won't accept the service and will educate myself on what is best for my 401k and continue to manage myself. Thanks for the input I really do appreciate it.
I want to be clear. Unlike Another Reader, for some people at some stages in their life with some nominal balance, this service could make sense. I'm thinking of cases like:
-With a larger nominal amount like you (e.g. it would cost you 4 basis points, and fall over time so I don't think it's that egregious)
-Where the employee never touches their 401k and leaves it to a default, such as a money market fund. Some folks can't handle or don't want to handle investment decisions. That's where Voya's target is.*
But if you are on this forum, I think we can give you more credit and assume you're up to the task of figuring out how to set up your investments. If you aren't sure, list the choices, your investment goal, and we can give suggestions for you to consider**. I had used Blooom for one month out of curiosity; in case you aren't familiar, they gauge your risk tolerance, years before retirement, and then set up an allocation with rebalancing. You could be 100% hands off still, but their fee is much less. Honestly though, it isn't that difficult to set up a good-enough investment plan and stick to it on your own.
*I'm assuming in these two cases that Voya just sets up allocations and rebalances. If they're actively moving your money in and out of funds then eek! You don't want to hand over the keys to your retirement to an active manager.
**Course most of us can't claim to be financial professionals and it's ultimately all your decision.
