Smart401k Blog

An article in the May 23, 2011, edition of MarketWatch digs into the root causes of the problems retirees are facing.

SAN FRANCISCO (MarketWatch) — The idyllic, play-golf-and-travel vision of retirement may well be a thing of the past. Most new retirees are either nervous or downright frightened about their golden years, according to a new study.

Uncertainty about the future, fear of poverty, lack of confidence in their investing abilities, and distrust of the financial-services industry were four of the most common feelings expressed by 300 recent or soon-to-be retirees in interviews conducted between 2008 and 2011 …    (more…)

We’ve heard from an increasing number of people who are asking ‘what’s the deal with target-date funds?’

This newer category of mutual funds has popped up as a popular topic in the news and the blogosphere during the past couple years. (They’re also called lifecycle funds and retirement date funds.)

Are you wondering whether target-date funds are right for you? (more…)

If you’re thinking about using advice or an advisory service to help you invest in your retirement plan, you have lots to consider.

Where do people find investment advice for employer-sponsored plans? Some people use an independent, unaffiliated advice service. Some companies offer investment advice for plan participants as an employee benefit. Some 401(k) plan advisers – who have helped your employer to establish a retirement plan – also provide participant advice. Or you might have a financial adviser who handles other elements of your personal finances and also provides advice for your employer-sponsored plan investments.

So how do you decide which option fits you best? (more…)

There was some hubbub recently in the world of retirement planning when Fidelity released some statistics from its 401(k) provider practice. Have you ever wondered how your employer retirement plan account balance compares with other people’s? Read on to see some of the Fidelity statistics, and read further to see why they don’t really matter. (more…)

I recently received a call from John Smith (I changed his name to protect his privacy). John had stopped contributing to his 401(k) about five years ago, and he called us while researching whether he should resume contributions. John wanted me to sell him on the idea that he should contribute again to his retirement plan – so I did. I want to share our conversation because I know there are many other people out there in John’s shoes who have settled for inappropriate funds or given up investing out of frustration.

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First a quick history lesson: Congress’ changes to line 401(k) of the IRS code took effect January 1, 1980. On that day, 401(k) plans started on a path toward being the primary means for employers to provide retirement plans. As 401(k) plan popularity grew, individuals became more and more responsible for saving for their own retirement. The stock market saw a long-term bull run through the 1980s and 1990s, so people accepted and embraced 401(k) plans.

Fast forward to 2008: With the worst bear market since the Great Depression, investors around the country saw their balances lose 30%, 40%, even 50%. Lots of people hadn’t understood that 401(k) investment performance would dictate retirement income rather than the predictable set income that company pensions had provided.

A few talking heads in the media and some political extremists called for the death of the 401(k) plan, and those people began throwing out ideas (more…)

Happy New Year! I’m energized by the thought of a fresh start and a new year to accomplish the goals I’ve set for myself.  I hope you have similar sentiments as you kick off 2011. My mantra for the year will be take control, and you’ll hear it over and over from me because controlling your own financial future is one of the best ways you can help yourself. (more…)

The market decline of 2008 and the following recovery in 2009 have, without a doubt, taken investors on an emotional roller coaster ride. Now those who’ve seen their accounts recover nicely during the past two years are wondering what to do with recently realized gains. Over the past few months, our advisers have received calls from clients asking whether they should take the gains from their portfolios and place them in an ultra-low-risk or fixed-investment option. The fact is that gains are the same as any other money that you have invested. As such, you should apply the same plan to gains that you use to manage the bulk of your account.

With the nerve-wracking market events and tumultuous economy of the past few years, many investors feel more like they’re gambling than investing. The negative sentiment surrounding Wall Street firms only adds to the feeling that investors are like casino patrons and the fate of (more…)

Everyone is in a hurry this time of year. There are people to see, parties to attend, gifts to buy, cards to send, and packages to deliver. We know your calendar is filling up quickly, but it’s important to set aside some time to take a look at your retirement plan. The end of the year is a great time to take a look back at your 401(k) and to plan ahead for the coming year. Last week, our president and CEO, Scott Holsopple, appeared live on FOX Business to discuss sound retirement planning practices ahead of the New Year. Click here to see his appearance!

In the midst of the hustle and bustle, here are five quick reminders for your retirement planning efforts (and possibly small-talk for your next holiday party): (more…)

What does Financial Adviser mean to you?

For most people it’ll be someone who makes recommendations and, in some cases, invests your retirement savings and other assets.  They may concentrate solely on your investments or they may handle your financial life (investments, taxes, estate planning, etc), but at the end of the day you’ve place your trust in this person to make decisions that are in your best financial interest.

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