Pensions are fading fast. If you work for a private company the chances are good that your retirement plan is a 401(k), not a pension plan. Even if you work for the government, the chances are that the entity you work for will resemble Illinois eventually.
That leaves you with the responsibility for your retirement. There are two problems with the 401(k).
The first is that too many people do not participate. Even when employers match their employee’s contribution, not everyone takes advantage of this “free money.”
The second problem is that most people don’t have enough information on the investment choices they are given in their 401(k). Investing is complicated. Most plans offer dozens of choices and few people know enough about investing to use them to create an appropriate portfolio.
Employers are not equipped to provide the information. Most do not want to assume the liability that giving investment advice exposes them to. An RIA (Registered Investment Advisor) who is also a CFP™ can provide the guidance people need to make sense of the investment option in a 401(k). Find a CFP™ in your area.