There is a perception among some people that retirement planning and investments are only for those who are very wealthy and this couldn’t be further from the truth. While you might not want to put a lot of money into investing if you can barely make ends meet, you do not have to be among the mega-rich to invest money. If your retirement planning consists of relying solely on a 401(k) from your employer, you may want to think about other streams of retirement income and a Fee-Only financial advisor can help.
In “Fee Disclosure Won’t Fix Your 401(k),” Mark R. Folgmann, AIF® writes that the Labor Department’s decision to give the public more information about the fees connected to 401(k) plans won’t necessarily change the nature o the plans or improve how they are managed:
“Simply put, a 401(k) provider maximizes its revenue by managing as many employer- sponsored plans as possible, not by ensuring that any given plan is run well. This is problematic because the 401(k) has become the primary retirement vehicle for most of the U.S. population.”
Contrast this with the individualized financial planning expertise you can get from a Fee-Only financial planner, and you will see why you may not want to count on an employer-sponsored plan to meet all of your retirement needs. Bringing clarity to your finances requires an advisor who pays attention to all aspects of your financial life, has excellent communication skills, and has the commitment to be available when you need advice and support.
However, Folgmann does not say that all is lost with 401(k) plans since he adds, “Most plans have the basic structure to be successful.” And being more knowledgeable can help you ask the right questions about retirement plans at work. If you want to take charge of your financial future, you can consult with an expert Fee-Only financial planner to make sure you are on the right track.