Protect Your 401k Liability Like Never Before
Strategies for Protecting Your 401(k)
1. **Diversification**: One of the most effective ways to protect your 401(k) from market volatility is through diversification. By spreading investments across various asset classes, you can mitigate the risk of significant losses. This strategy is supported by numerous financial advisors who emphasize the importance of a balanced portfolio1.
2. **Regular Plan Reviews**: Conducting regular reviews of your 401(k) plan can help identify any administrative errors or compliance issues. These reviews should include an assessment of investment performance, fee structures, and compliance with regulatory requirements2.
3. **Fiduciary Insurance**: Employers and plan sponsors can protect themselves from fiduciary liability by purchasing fiduciary insurance. This coverage can shield against legal costs and damages resulting from alleged breaches of fiduciary duty3.