By Yvonne Marsh, CFP®, CPA
Did you know that 6 in 10 people think their 401(k) will be their biggest source of income in retirement? Which makes sense when we consider that more than 73% of the employer pension plans that existed 20 years ago are now closed, frozen, or terminated. We’re on our own when it comes to creating retirement income using our employer-sponsored retirement plans.
Your employer chooses which investment funds to offer within the plan, but they are prohibited by law from giving you investment advice. It can feel overwhelming when it comes to knowing which funds to pick and how often to rebalance. And who has the time or energy to research investment options after a long day at work? That’s where our new service, Plan Confidence, can help.
A recent Schwab 401(k) participant survey found that more than 77% of people said they would be “extremely confident” or “very confident” in their investment choices if they had the help of a professional. And in fact, a study published by the Vanguard Group in 2014 finds that using a professional investment advisor boosts your average return by 3% over time. The increase comes from improved portfolio diversification, regular rebalancing, and behavioral coaching.
Using specialized software tools, we can provide customized 401(k) investment advice. And it’s easy! There is no need to roll your account over to an IRA. Your money stays right where it is – in your 401(k) plan, and we help you choose from within the options offered.
Step 1: We assess your risk tolerance with an easy-to-use questionnaire.
Step 2: Within your password-protected Plan Confidence account, we create personalized investment recommendations using your existing 401(k) options.
Step 3: We give you step-by-step instructions on how to implement our suggestions.
Step 4: We send you friendly quarterly reminders with rebalancing instructions and any updates.
With 24/7 access to your Plan Confidence account, you can review your recommendations and change your risk tolerance at any time. It’s easy to try because there is no long-term contract. And it’s economical: Monthly fees range from $35 to $95, depending on account size.
If you’re one of the 6 in 10 people who think your 401(k) will be the biggest source of income in retirement, don’t guess at your investment choices. Get started building your Plan Confidence today.
Sources: Charles Schwab 2016 401k Participant Survey. Retirement Offerings in the Fortune 500: A Retropective, WillisTowersWatson, Feb 2018.
Financial Planning & Investment Advisory Services are offered through Marsh Wealth Management, LLC (“MWM”), an independent investment advisor registered with the state of Tennessee. Yvonne Marsh is an Investment Advisor Representative of MWM in the state of Tennessee. Marsh Professional Group, LLC, is a TN registered public accounting firm and a separate legal entity from MWM. For a detailed discussion of MWM and their investment advisory fees, see the firm’s Form ADV on file with the SEC at www.adviserinfo.sec.gov.