How Should Plan Assets Be Invested?
Plan assets should be invested within the context of the owner’s overall financial plan. Mutual funds and/or individual stocks are frequently chosen. If mutual funds are selected, the employer must decide on whether he/she prefers a single fund family or funds from different fund families. Certain investments are prohibited; for example, any investment that involves self-dealing. Investment fees should be thoroughly evaluated; special scrutiny should be given to a provider that claims to offer a low-cost solo 401(k) plan.
