Portfolio Manager Michael Beck featured in the Dallas Morning News discussing the popularity of ETFs in 401(k) plans with Pamela Yip.

Here is what Michael had to say about Day Trading and EFTs:

Similarly, just because you can trade ETFs during the day doesn’t mean you should.

“We advise everybody that this is long-term money and they shouldn’t trade more than a couple of times a
year max,” said Michael R. Beck, executive vice president of Gerald L. Ray & Associates LTD in Dallas, an
investment advisory firm that offers businesses 401(k)s that use only ETFs. “It can’t be every month.”

Besides, there are limits to how much you can trade ETFs during the day in a retirement plan, he said.

“The option is there to trade intraday, but it’s a limited option,” Beck said. “Most plans bunch the trades,
meaning that if I rebalance a portfolio, they’ll do a trade like at 1 o’clock and at the end of the day, so they
have two trading windows. That’s the average 401(k).”

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