In the corporate world, the “defined benefit” pension plan is dying. This is the old pension plan that promised you a specific dollar amount each month for as long as you lived. Even in local and state government, the cost of pension obligations has exploded to the extent that retiree benefits are threatening the solvency of cities and states across the nation. “Defined contribution” plans like 401(k)s, 403(b)s and TSPs have already begun to be incorporated there, and it probably won’t be long until they are the only retirement plan option offered by municipalities.
401(k) plans often represent the biggest financial asset that an individual has. Yet, often very little guidance is given to workers who make contributions to these plans. Most employees simply get a list of mutual funds that are available in the plan and are asked to select one or more of these funds. Further, due to liability concerns, corporate benefits departments are not equipped or allowed to advise employees on an appropriate mix of investments.
However, these employees do have a source of information and advice available to them. RIAs (Registered Investment Advisors) can provide investment guidance on retirement plans. If you or someone you know would like advice on how to invest the money in your 401(k), 403(b), TSP or other retirement plan, simply click on this link and send us a message. We’ll get back to you within one business day.