TIME TO RETIRE THE 401k?

We recently interviewed a group of employees, age 45 to 55, to list their top criteria when selecting a retirement savings plan. We wanted to know what they considered the most important features. This is what they said:

  • Competitive Returns
  • Tax Free Distributions
  • Access to My Money
  • Protection Against Market Downturns
  • No Government Interference
  • Unlimited Contributions
  • Tax Deductible Contributions
  • Additional Protection for Unexpected Life Events such as Job Loss, Medical Emergencies or Premature Death

Interestingly, 70% of the members of this interview group were currently using a 401k as their primary retirement savings plan. Yet, the 401k only meets 2 of the 8 criteria they find important. After explaining this to the group, the feeling was unanimous…it is time to retire the 401k.

 

 

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