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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