The WorryFree Retirement® Blog

Is Your 401(k) Over-the-Hill?

By December 13, 2018 June 19th, 2019 No Comments

Back in 1978, three very important events occurred: 1) Yours truly graduated from high school; 2) My granddad retired after 43 years of faithful service to his employer, Bell South and 3) a bunch of politicians got together and enacted into law what we now know as “The 401(k) Plan”. Since the 401(k) is now celebrating 40 years on earth, does that mean it’s over the hill?
Forget my graduation from high school – nobody cares. So let’s look at the difference between my Granddad’s guaranteed monthly pension (he called it Mailbox Money®) and the risk and uncertainty ushered on the scene as a result of the 401(k) plan (the 401(k) does not provide Mailbox Money). The chart below speaks for itself…over the years, Mailbox Money is on the way out – risk and uncertainty (as noted by the growth of the mutual fund industry) is on the way up.

As a fiduciary, I’m personally responsible to let my clients and prospective know if there are any conflicts of interest in my advice. Apparently, this isn’t the case when it comes to the trillions of dollars Wall Street is willing to retain and charge recurring fees (remember – once your money goes into the 401(k) plan, it’s really hard to get it back out). The same folks who now control your money within the 401(k) – Wall Street – happen to be the same folks who keep telling you to “max-it-out”! Well no wonder; they get all the fees and you take all the risk.

Now don’t get me wrong, by all means, the 401(k) plan is one heck of a retirement savings vehicle – especially with an employer match attached to it.  The problem is, it’s a LOUSY planning tool! That’s because the of Tax Tumor® buried inside of it. But the folks on Wall Street aren’t all that worried about your retirement income plan and the taxes you’ll have to pay one day; that’s your problem and that’s where we can help. You see, a trained Retirement Specialist is someone who understands that saving for retirement and “planning” for retirement are two entirely different levels of expertise. This is why I created The WorryFree Retirement Process®, the only process in the country dedicated to helping savers worry less about money. So if you’re tired of locking up your hard-earned money with no game plan in site to use, enjoy and protect it, let’s meet to see how we might help.

Let’s Get Started!