Your 401(k) Could Be The Reason You Fail Financially In Retirement

Paul K. Dunn
May 8, 2017
3 min read

No one wants to open their 401(k) statements these days. We're not sure whether it's because of the fear of not understanding what it says or because you're sure it's not enough to be worth the effort of opening the envelope. Whichever reason you chose, none of them will be good enough to help you retire stress-free and financially secure. If you are contributing to ANY kind of work selected, retirement plan, it's time you understand what you have. This short video will shock you.

401(k) and 403(b) are the most popular next to the IRA plans available for retirement. The reality is that there's a chance it will fail to work as intended. These type of plans are governed by private firms that hire brokers to manage the accounts. The strict instruction is to act in the best interest of the SHAREHOLDERS, NOT the client. What's hidden beneath this style of investment is a bit deceitful but not enough to be classified illegal. Hidden fees that do not have to be reported, market exposure that puts your entire retirement savings at risk, pays you interest lower than inflation (this means you are losing money) & a tax deferred structure that penalizes you 50% if you don't need your money by age 70.

Why do we actually chose to put our money in these vehicles? I have found that 90% of clients with 401(k) or 403(b) plans only put their money in work issued plans because they think they have to or don't understand any other way of creating a retirement plan. Usually fear drives the wrong decision and then prevents us from making changes to avoid looking stupid. In the financial world you must get great at ASKING questions that get you specific answers. Like "How much money goes into MY pocket every year?" How much money am I losing by choosing this plan?" Is their risks and what are they? Can they be managed and understood by ME? These are the questions that I arm my clients with to help improve their financial information. The more financially intelligent I can help them become, the easier they are to work with. This approach will also cause more awareness to what is truly going on with their money.

There are many shiny objects, complicated investment strategies and even more complicated financial service providers that want you to remain ignorant or financially illiterate because it benefits their wallet. Let this be the case no longer. Become more financially intelligent and understand what you want to achieve, set a solid goal to achieve it and track it along the way to make sure you are going in the right direction.

If you have a 401(k) or 403(b) let us offer to help you point out the facts. We want you know these things about your current plan:

* How much interest you're receiving | Are you losing money here?

* Are there hidden fees you are not aware of?

* How much money has gone into your pocket since you started your plan

* How can we avoid losing 50% of your retirement due to market declines

* Can we make you more and protect your savings better in another vehicle

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