Fad topics come and go be a certain set of 401k concerns remain the same. What are they and why do they motivate plan sponsors?
Education
Perhaps itâs time to cut the cord of âfinancial wellnessâ and take your tonic of financial reality. Accept the schoolmarm for the discipline she brings, because that remains the most honest way to the riches of a satisfying retirement.
Plan sponsors can benefit from motivated employees, and the 401k plan is a tool to achieve this motivation. What precisely can plan sponsors offer in addition to the usual company match to make their 401k plan more enticing, more attractive, more motivating?
Perhaps 401k plan sponsors should also focus plan participantsâ attention on these 5 overlooked factors the can thwart their ability to attain the freedom of financial independence.
Just because you donât have a fiduciary duty to other employees doesnât mean you shouldnât continue to think like a fiduciary.
Whatâs the Goal? Last I heard it was preparation for retirement via tax preferred savings ⊠but, looking around at what is typical industry practice, perhaps I have it all wrong.
This isnât to say younger employees should be left out of this type of education altogether. They shouldnât. Itâs important the message is drip, drip, dripped from the beginning of the onboarding sequence.
Before you scorn the use of badges, remember, the company match is the ultimate badge. If you meet a minimum savings goal, the company awards you a âbadgeâ of a matching contribution.
Learning to budget isnât a single lesson. Itâs a series of lessons that get more advanced as the student progresses.
Because things happened so fast, everyday folks could see in real time how long-term financial systems unfold. In the end, this may have been the greatest lesson of all, and it came courtesy of living in the real-world economic laboratory that was 2020.
