Today, the general tendency for the typical wage earner is to allocate a specific portion of his or her salary into long term investment plans. Specifically, 401k’s have been most reliable for long term asset security and equity growth. However, with increasing volatility in financial markets and fluctuations in world economies, maintaining a balanced portfolio of mutual funds in 401k’s becomes often arduous to handle. As a result, businesses and wage earners find themselves indecisive in choosing the best financial agency to manage their assets. In this project, I will analyze the 401k sales of AXA financial services and inquire into the possible reasons why AXA has obtained a possible preference over other competing investment firms. Major areas of my analysis will include: comparing and contrasting AXA 401k management strategies, analyzing various services and plans offered by AXA and competitors, and mutual fund diversification. By doing this, I will be able to answer two leading questions for this project: “Why are 401k sales particularly varying when it comes to investment management compared to other retirement plans?” and “What are the prime reasons that explain such differences in 401k sales?” I will conduct my research by using the online access to AXA’s 401k portal, subsequently using this data as the basis for much of my results. Online data may include actual portfolios of mutual funds, list of AXA 401k holders, and potentially different plans chosen by advisors and clients. By concentrating my studies into these categories, I will then be able gain a cohesive understanding of 401k management and investment services.
In addition to the concentration on 401k’s, I will also study other investment platforms in comparison to retirement funds. Particularly, I will study the performances of standard portfolios of individual stocks and ETF’s and their profitability against 401k’s. As result, I will be able to analyze the more efficient investment strategy for investors and clients alike considering today’s volatile markets.
I'm curious to hear your thoughts on the relationship between one's 401K and the upcoming elections. We have some interesting candidates for president and I'm inclined to believe the markets will behave differently depending on the person voted in to the White House. Could certain candidates have profound and lasting results on one's 401K?
ReplyDeleteAbsolutely. Not only 401k's but investment portfolios as a whole. Already, the average 401k is down $8000, and will only continue to follow the same pattern as the country continues to experience economic shifts. As far as the presidency and the election, some candidates are going to enforce legislation that will impact Wall Street, positively and negatively. Candidates like Bernie Sanders will tax Wall Street by enforcing a 0.5% tax on every trade or transaction, in order to generate money for his free education plan. Analytically, a tax on trades and financial transactions are suppose to create more volatility in the markets. I believe that the behavior of the markets will last unless the economy is strengthened, which most candidates are striving for.
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