Even if plan participants read the vast amount of details plan providers have published on fees they will continue to be underserved. Most plans provide a high number of fund choices with little direction and guidance. 401(k) plans need to be designed to look more like a pension plan to be effective in reaching their goal fo a successful retirement.

Arranging the right mix of investments in the right amount and adjusting for your personal risk tolerance requires basic knowledge of modern portfolio theory — a set of market maxims and principles that must be carefully applied. And to get the best results, the investments that you buy as a result must be carefully monitored and tweaked, or fundamentally shifted, as you go along.Ask the advisor about the calculation for your retirement resources. Basically, here’s how that works: If you invest x amount a year for x number of years and receive an average return of x and inflation is x, then as of x date you’ll likely have about x dollars a year that you can take out of your investment accounts.

How much money you’ll have and need henceforth depends on a number of market and personal factors, including how long you’ll live. Look at your current plan contributions to see whether you’re on track. Chances are, you’re not. This calculation is no easy business, but with the right advice, you can make a stab at it.

Plan sponsors need to require their plan adviser to educate their employees individually or in groups. The 401(k) plan must become more of a pension fund like plan in order for employees to succeed in reaching their retirement goals.

Please comment or call to discuss how this affects you and your 401(k) plan.