Something is very wrong with the way many retirement plans have been structured.
Basically, you want two things from your retirement account:
- Grow, baby, grow!
- Support me with steady income in retirement
But, have you ever stopped to think…
“Am I invested in the things that will get me where I want to be?”
“Am I putting enough money away to reach my goal?”
“What would happen to my account if the market takes another big hit?”
“Can anyone tell me how to use this account to get what I want?”
These are common questions. And the trouble is, for most people, they go unanswered.
No one from Human Resources can give answers at all. And, the Retirement Plan company is usually not allowed to give these answers.
This might sound crazy, but you see this kind of information is far more detailed and complex than simple education.
Retirement Plan providers (companies like Fidelity, Vanguard, T.Rowe Price, Lincoln, etc.) are only allowed to educate the Participants of a Plan on basic investment information.
If all you want is data like average returns, standard deviation, asset class, expense ratios, and stuff like that, then you’re golden.
But, if you want actual answers about:
- what you should be invested in
- how much you should be putting away
- how much your account will grow over time, and
- how much income you can expect during retirement…
…that’s investment advice, which your Plan provider is not allowed to give you.
They might (rarely) have an investment advisory option available through a partner firm or through one of their subsidiaries, but it might be expensive.
(Anything more than 0.50% per year is too expensive, even if their returns look good.)
This is why I created the 401k Toolkit.
Investment advice is what I do.
You choose what kind of advice you want and how often you want it. I do the rest.
It’s also why I:
- write blog posts
- gather research reports
- make videos
- host webinars
- educate workers about these options
Almost no one’s telling you, and I think you deserve to know.
So, if you haven’t done it already, take a second and subscribe to my email list.
That’s the best way to get my new material. I only do it about 15-20 times a year.
I’ll only send the kind of material you find interesting and valuable, and if you ever want to stop, you just Unsubscribe and it’s over.
So, what are you going to do now? If this post got you thinking about your retirement account, (maybe for the first time in a long time), please comment below with what concerns or questions came to your mind.
If you know someone who is still saving for retirement, share this post with them. People need to see this!
If there’s something I missed or if you want more detail on something, tell me in the comments.
I don’t always have time to reply to all comments, but I read every one of them. I know others will too.
Until next time, stay Confident!