The 401(k) plan is now the primary retirement plan for employees in the private sector and Ted Benna isn’t happy. Benna is regarded as the “father” of the 401(k) plan but now he calls his child a “monster.”
There are several problems modern with 401(k) type plans.
What’s the answer? Until there are major revisions to 401(k) plans, it’s up to the employee to get help. One answer is to meet with a financial advisor – an RIA – who is able and willing to accept the responsibility of providing advice and creating an appropriate portfolio using the options available in the plan. There will probably be a fee associated with this advice, but the result should be a portfolio that reflects the employee’s financial goals and risk tolerance.
Arie J. Korving, a CERTIFIED FINANCIAL PLANNER™ professional, has been delivering customized wealth management solutions to his clients for more than three decades. Prior to co-founding Korving & Company, he was First Vice President with UBS Wealth Management and held management positions with General Electric.