Insights | 01.20.21
How Advisors Can Educate 401(k) Plan Investors
Critics contend the 401(k) retirement plan system has become too fee-heavy and may no longer be the ticket for workers not fortunate enough to be offered the best plans or good employer matches. But Renée Pastor, founder and wealth manager at the Pastor Financial Group, believes it is still the best retirement savings vehicle, given what is available. She acknowledges that hidden fees are an issue, but that investors should weigh that against the net-net result 401(k)s can provide. She said people need and want help in managing their account, and that is borne out in surveys from companies like Charles Schwab showing participants want personalized advice. “If you work for XYZ company, you don’t have a choice as an employee as to what 401(k) plan your employer picks, nor do you have a choice of which investment options they give you,” Pastor said. As a result, she added, the burden falls on the employee to select from those investment options. And because many participants do not have the time or savvy to choose investments, they could hurt themselves financially.
Read the full article on Financial Advisor.