The problem: Many folks don’t join their 401(k) at the earliest opportunity, they don’t save enough, and they fail to diversify and manage their accounts. That can cost workers tens of thousands of dollars, or more, in reduced savings for retirement.Are Your 401(k) funds money losers?
401(k) advice for Gen-Xers
Watch: What you should know about your 401(k)
The good news is that more employers have made changes to their 401(k) plans to help employees. A big change for many 401(k) plans is the “opt-out 401(k),” where enrollment in the plan is automatic as soon as an employee becomes eligible to join. This simple change takes advantage of the power of inertia. New employees are automatically enrolled in a company’s 401(k) plan, and they must officially ask to discontinue contributions if they do not want to enroll. The “automatic enrollment 401(k) plan” has proven to increase the number of employees who participate in plans with this feature.
The addition of managed allocation services to your plan is like adding a pension fund like plan to your company sponsored retirement plan. It reduces fiduciary risk and improve results for all plan participants involved.
Please comment or call to discuss how this would improve your 401(k) plan.