Can’t: Invest Beyond the Parameters of the Plan
One of the main disadvantages of a 401(k) is that your investment options are restricted to what your plan administrator can offer. In most circumstances, this means a range of mutual funds. Some plans are better than others, however.
The best programs provide a wide variety of investing options. But some might only have a few stock or bond funds to choose from, usually to reduce employer costs.
Even though a 401(k) plan can be a tremendous tax-deferred investment option, especially if your employer offers matching funds, you can’t pick your own stocks, cryptocurrency, or other investments in most cases.
