Employee Benefits News has an article with the headline explaining why employees need investment advice. Here’s their reasoning:
While American employees appreciate having a 401(k) plan, the majority will likely spend more time planning for a new car purchase or vacation than researching their plan’s investment options.
This retirement disconnect is not surprising, according to Schwab Retirement Plan Services, which released a survey this week of more than 1,000 401(k) plan participants. “We often see that participants are hesitant to take action when they’re not completely comfortable with the matter at hand, and this is especially true when it comes to financial decisions,” says Steve Anderson, head of retirement plan services at Charles Schwab.
Aside from health coverage, the survey found nearly 90% of workers agreed that the 401(k) is a “must-have” benefit, more than extra vacation days or the ability to telecommute. However, employees said they spent more time researching options for a new car (about 4.3 hours) or vacations (about 3.8 hours) than researching their 401(k) investment choices (2.1 hours).
The article goes on to mention that more people get help having the oil in their car changed, mow their yard or prepare their taxes that planning how to invest their 401(k). This is a problem because changing your oil, mowing your yard, even doing your taxes, is easier than making wise investment decisions. For many people, their 401(k) is their biggest source of financial security for their retirement.
If you want to get the best out of your 401(k) think about getting the guidance of a professional. Contact an RIA.