401(k) investments are a cornerstone of any effective retirement plan, and yet many American workers have a limited understanding of how they work. Many people just take the plan offered by their employer, but that can be a mistake that will cost them when it's time to retire. According to the financial planners at Legacy Financial Group, not all 401(k) plans offer the same level of performance and benefits.

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If your employer's retirement plan contains any of the following elements, Legacy Financial Group recommends looking elsewhere for a strong 401(k) investment plan:

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• Proprietary Funds: If your 401(k) is full of mutual funds owned and controlled by the same business that provides your company with its retirement plan, you can be relatively certain that the investments were chosen to benefit the brokerage firm and your employer, not the investor.

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• Homogeneous Fund Families: No single mutual fund family offers the best value in every situation, so if your 401(k)'s fund list is populated mostly by funds from a single company, your investment is probably not performing as well as it could be.

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• Group Annuities: These are investment contracts offered by insurance companies that are very expensive, complex, and don’t offer any serious benefits. In almost every instance, you'll be better off with your own 401(k) than with a group annuity.

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Whether you think your employer's 401(k) plan is effective or you’d like to explore another avenue, Legacy Financial Group's will help with all of your retirement and financial planning needs. They pride themselves on the depth of their expertise, which they use to provide highly individualized service to all of their clients.

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