What if I was to tell you that you may have MORE OPTIONS than you are aware of in your 401(k)/403(b). You would think I was kidding, right? Unfortunately, most employees are unaware of an important opportunity within some 401(k)/403(b) plans called a “self-directed brokerage account”

Why leaving your 401(k)/403(b) in AUTO PILOT may not be beneficial

Most people set up their 401(k)/403(b) and then every once in a while, they glance at how it is performing. What’s worse is that most employees never make any material changes to their 401(k)/403(b) plan and don’t even use the automatic rebalancing button that is offered within their 401(k) systems. What if there was an option to have your 401(k)/403(b) funds professionally managed. Three reasons you should consider using a self-directed brokerage account if your employer plan allows:

1. The ability to increase your investment choices. The investment fund options provided by most companies are limited to a select group of mutual funds. A self-directed brokerage account may permit you to invest in a broader array of investments and portfolios.
2. Control and Flexibility. Most investors have an interest in exercising more control over investment selection.
3. Fluctuations in the Market. The challenges of the market favor actively managing your 401(k) and 403(b).

There is no better time than the present to take control of your future!

Free No-Obligation Meeting - Contact us today to help you determine if your 401(k)/403(b) allows for a self directed option. 

This is both alarming and thought-provoking:

Individuals, as it stands, are drastically undersaved for retirement. Only a third of employees contribute to a 401(k) plan, and that’s if their employers even offer such an account (only 14% actually do, according to U.S. Census Bureau researchers). The typical working-age American couple only has $5,000 saved for retirement according to an analysis of the Federal Reserve’s 2013 Survey of Consumer Finances; and not many baby boomers are financially prepared for retirement.
 
The following milestones and recommendations are something I cannot personally affirm to, but it is a fascinating chart to inspect and make you think.   (Who could possibly have at 30 saved up half of their annual salary?) Regardless of the actual numbers, it’s a thought provoking exercise to look at the full arc of time of a saver by decade regardless:

If you one of the many individuals out there saying things like “Yeah, I need to start doing something” or “I will take a look at this next month” then you need to stop the anxiety and procrastination.  Find someone you trust and take a few minutes to get things on track.  A little pain today can help to avoid a lot of pain down the road.   We are here to help, with whatever questions you may have.  Contact us today to set up a brief conversation!

Let’s talk for a minute about the different approaches to your savings.  I would like you to think about how you came to the decision or if you haven’t yet put together a plan, where you go for advice?
 
I started thinking about this issue this morning after hearing about a client that passed away suddenly.  We had put together the outline of what he was going to do but had not yet completed all the initial steps.  This is not my first experience with this and I’m sure every financial person has a similar story.  The point is…. until you have your foundation and frame built, you are running the risk of leaving those you care about with limited options.
 
The foundation and frame of your house (savings plan) is the essential part and needs to be established so you can finish your house with all the bells and whistles you can imagine.  Think of it like this.  The frame is the risk products (insurance) and what you fill your house with are all the other investment choices available to you.  Yeah, the fun and sexy part of finance are the investments.  But without a solid and concrete foundation, what good are the furnishings?   If something were to throw you off, in other words, life happens, are you prepared?
 
This is part of our mission.  To plan around life today and prepare for what tomorrow might bring.  When we talk about lifestyle and financial planning, we are saying we need to look at the emotions and beliefs, some good and some bad.  But when you can see clearly and understand why you are doing the things you do; a lot can be accomplished! 
 
So, browse through our website, ask questions, and most importantly, take that first step – request a brief conversation.  Don’t let another day go by and say to yourself “Yeah, sounds good, I’ll look into this soon.”  Do it for yourself or more importantly, the loved ones around you!