How you can tell if you have a good 401k plan

Does Your Company Have A Good 401(k)? A recent study done by The Pew Charitable Trust found that 35 percent of private sector workers over the age of 22 don’t work for a company that offers a 401(k) plan.  What’s scary is that the 65% that do have a retirement plan offered through the workplace today, still don’t even understand how the plans work and how to maximize the plan for their personal benefit.  Terms including matching, profit sharing, vesting, Roth 401(k), target funds, and many more can be overwhelming.   In a recent sample I did with my own clients, 10 out of 10 people did not know what a summary plan description was or where to find it on their company intranet. Having a 401(k) at work is going to be an important savings element for your financial future.  Far too often, employees don’t realize they can go to their owner, CEO, Benefits or HR department, and tell them ...

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You Should Get To Know The Self Directed Brokerage 401(k)

You would think that because I’ve been doing financial planning for 25 years that I would be a flat out 100% advocate for 401(k) plans.    With the ability today to put away money on a pre-tax basis in your 401(k) or now the use of a Roth 401(k) there are many different ways to save for your future.    Many employers even offer a ‘match’ of some of the funds that you put away into your plan as an incentive and some companies even give a year end profit sharing contribution if the company has done well.    The 401(k) has now become the Gibraltar Rock for most people in their 30’s and 40’s as the main driving force for their future retirement.    In most 401(k) plans, the problem is that you are generally limited to choices of five or six target date/retirement date funds and with limited index fund choices you could be left in an absolute mess in retirement if ...

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Why The 401(k) Needs To Be Replaced

You would think because I’ve been doing financial planning for 21 years that I would be a flat out 100% advocate for 401(k) plans.    With the ability today to put away money on a pre-tax basis in your 401(k) or now the use of a Roth 401(k) there are many different ways to save for your future.    Many employers even offer a ‘match’ of some of the funds that you put away into your plan as an incentive and some companies even give a year end profit sharing contribution if the company has done well.    The 401(k) has now become the Gibraltar Rock for most people in the 30’s and 40’s as the main driving force for their future retirement.    In most 401(k) plans there are even more options including a multitude of mutual funds and in some cases a self directed brokerage account if you are savvy enough to manage the 401(k) on your own.     With all of this ...

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