401Ks are enormously important tools in wealth building, but...
Most businesses make the same 3 mistakes in their 401K.
401Ks are enormously important tools in wealth building, but... Most businesses make the same 3 mistakes in their 401K.
The way most founders, CEOs and execs pick their 401K is simply by checking a box inside their payroll app out of sheer convenience. As a result…
they never explain to their employees why the use of the after-tax contribution option is so important over time (and many employees aren't even aware it exists)
they offer horribly bland and often overpriced funds inside their 401K
they pre-set the investments to default to Target Date Funds which sound great in theory but in practice put you at more risk the older you get due to their increasing allocations to bonds
The result? A luke-warm benefit that doesn't help or excite your employees as much as it should. And that means a missed opportunity to build loyalty and to strengthen your Firm culture.
We can help you set up a modern 401K and will also take the time to educate your employees about their choices in the 401K and how it can be used as an important wealth building tool. In addition, our 401Ks offer a wider range of modern investment choices.
If you REALLY care about your employees, do it right.