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?
Tag "Tax-Deferred"
Never belittle the question or the person asking the question. These are sincere queries that represent commonly held beliefs. These beliefs live a Schrodinger Cat-like existence, being generally not quite true and not quite false. It’s critical, for the benefit of all retirement savers, that these questions be asked and that fiduciaries encourage their asking. This is the only way that allows the fiduciary to respond in the second noteworthy way: By using these questions to refute misconceptions and promote good retirement saving decision-making.
It’s like winning the lottery. In exchange for getting money you wouldn’t have otherwise received, you’ll have to give some of it to Uncle Sam. Uncle Sam gets more taxes. You get more money. It’s a win-win!
Tax-deferred compounding is the retirement saver’s silent partner on the journey to retirement success.
With the advent of the 401k plan, we added two more gears, changing our savings vehicle from a ’72 Pinto to a ’68 Mustang.
