As a retirement planning specialist, I guide clients in preparing for life after work. This includes
helping them anticipate living costs, healthcare expenses, and potential market fluctuations. My
ultimate goal is to ensure that my clients have saved enough money to live comfortably for the
rest of their lives. To achieve this, I encourage clients to invest in asset classes that can
generate retirement income streams that they can outlive. I also review clients' retirement plans
periodically, taking into account market changes and life events that could impact their
retirement planning. With my expertise, clients can rest assured that their retirement plans are
well-managed and optimized to meet their long-term financial goals.
Investing in a 401(k) is often promoted as a wise retirement strategy, but there are some hidden
drawbacks that you should consider before investing. For example:
Tax-Deferral - With a 401(k), you'll only pay taxes on your investment when you
withdraw it. However, taxes are likely to increase in the future, so you may end up
paying more than you bargained for.
Employer Match, aka Free Money - While it may seem like a great deal to get an
employer match, research shows that employers may be using this as a way to reduce
your salary. And, some employers require you to stay with the company for a certain
number of years before you're fully vested.
401(k)Fees - Fees can eat into your retirement savings, particularly in smaller plans.
Over time, these fees can add up to a significant amount, potentially costing you
hundreds of thousands of dollars.
Unattainable Vault - You won't be able to access your 401(k) funds until you're 59 and a
half years old, which can be a problem if you need the money before then.
Market Returns Scam - Despite efforts to grow your investments, the average earnings
for mutual funds in 401(k) plans are only around 4.25% per year, and inflation reduces
that return to only 2.1% per year. This means you may not see the growth you hoped for.