What if you were told the best way to calm your nerves was to be worried? Here are 7 reasons why this might be true.
Plan Sponsors
If it is true the fear of loss motivates people more than the offer of a gain, then the traditional 401k company match framework is designed improperly. Currently, employees are promised a reward for contributing in their 401k plan. Think of this as the carrot urging people to save for their retirement. What if, instead of using a carrot, plan sponsors reframe the âmatchâ in terms of a stick?
With the introduction of the concept of anchoring, Tversky and Kahneman opened the door to a new way of thinking about and addressing the financial decision-making process. For more than four decades, subsequent research has expanded upon their idea. Yet, plan sponsors and participants continue to remain uninformed of the dangers of anchoring.
Itâs understandable, given the many hats plan sponsors wear, that mistakes will be made. The challenge is to not dwell on them, but to have a reasoned and determined process to address and correct them.
âSmall business owners really need to have a clear understanding of all the retirement plans… Finding the right strategy will help you grow your business and save for your retirement.â
If you’re a plan sponsor, it’s time to review how your plan measures up against these design elements. If you’re looking to become a plan sponsor for a new plan, consider whether or not you should include these design elements.
The best strategy is to live in moderation – both today and when you retire.
Now that you’ve determined your Goal-Oriented Target, discover what it means.
What if the choice between what’s behind the curtain and what’s in the box led to exactly the same outcome?
Who wants to be a millionaire? It’s easier than you think – especially if you’re in your twenties.
