How to ask your employer for halal 401(K) investment options

One of the first decisions you’ll need to make after accepting a job offer is deciding how you’ll invest your employer plan. These plans are generally funded with pre-tax money and, in many cases, your employer will match your contributions. That’s essentially free money. But most plan providers will offer you a limited menu of investments. Some may have a few socially responsible options, but it’s highly unlikely you’ll find a halal mutual fund. So, what are your options? Ask your plan provider if your plan has a self-directed brokerage account. It’s essentially a sub-account within your 401(k). As employees demand more options from their employers, these types of accounts are becoming more common. A self-directed brokerage account can offer you access to investment choices beyond your plan’s investment menu. This includes access to halal mutual funds. You should, however, proceed with caution. Investments chosen through such an account are not monitored by your plan’s provider. It’s your responsibility to read a fund’s prospectus so you understand its investment strategy, fees, and risks before investing. Once your account is established, most plans require that you maintain a minimum investment in your 401(k) account. Also, make sure you understand your plan’s