In one of my favorite superhero series, Spiderman, Peter Parker’s Uncle Ben once said “With great power comes great responsibility.” Something similar can be said for being a plan fiduciary for a 401(k) plan.
Imagine you’re at the hospital and your wife has just given birth to your first child – a girl. Friends and family are coming to visit. They all want to hold your baby, shower her with gifts, and perhaps some of your more practical family members give you money to set up her college fund.
With the small college fund now set up, the difficult questions follow. How will we continue to fund for college? What about retirement? What’s the next step? What’s the priority?
As a responsible plan sponsor, you may occasionally wonder if there’s a different retirement plan provider that’s more beneficial to your employees and your organization. Before you do any legwork, and certainly before you make any decisions, it’s important to formulate a game plan because no two plan providers are exactly alike, and there are no “cookie cutter” solutions.
By properly aligning fiduciary and non-fiduciary roles and responsibilities, a plan sponsor should be able to determine where the holes are in the service model and take the necessary steps to fill them. Here’s a summary of some of the most common gaps between the service model and plan sponsor perceptions.
Despite its sandy beaches and beautiful ocean sunsets Hawaii is one of the worst places to retire! Based on the cost of living—the highest in the U.S.—and low Medicare spending, this tropical paradise can’t outshine the strain it will put on your wallet. Check out the top five best and worst states. Does your state make the list?
81% of Americans say they don't know how much money they will need for retirement. Tailoring a retirement plan balance with the right Social Security strategy can boost the chances of not outliving your money. What if you live to be 90? See if your retirement goals and your Social Security benefits are aligned: Calculate my retirement.
Before you settle for a state compliant “free” Roth IRA, you should understand the differences between all of the options at your disposal and select the plan that will best enable you and your employees to meet their retirement goals. Taxation and contribution limits are just the tip of the iceberg.
Imagine it’s Wednesday afternoon and you’re on the downside of your work week. You’re looking forward to working in the yard, taking in a ballgame or perhaps a round of golf on the coming weekend. Off in the Atlantic there is a tropical storm but the forecasters predict it will spin harmlessly off the coast, trailing back into the mid-Atlantic.
“When I retire, I’m going to __________.”
Do you already have this blank filled in, possibly with more than one answer? At what age will your official retirement begin? Depending on where you live the average age of retirement could be vastly different. Check out the five highest and lowest retirement ages around the globe.
Experts agree, the way Boomers will live out their retirement years will look very different from the historical, stereotypical image of “senior citizens.” So, rather than retiring into the background of our society, more will remain vibrant and active throughout their retirement years than was the case of previous generations.
As of June this year there were over 160,000,000 Americans in the workforce. We’ve come a long way since the days of child labor, unsafe working conditions and the 12-hour work day – all part of the labor landscape at the turn of the 19th century. We now have an official day off every year, 40-hour work weeks, vacation, sick days and so much more. And with the establishment of company pensions and 401(k) savings plans, we have the ability to prepare for our retirement in the workplace. As a nation, we have a lot to celebrate!