End of the Trail for 401(k)

23 November 2011 - Filed under Educational Information + IRA Real Estate + Real Estate Investment

Don’t be surprised to see news on the termination of your 401(k) plan next year. For a variety of reasons, employers large and small have decided to throw in the towel on this retirement planning vehicle which has been helping over 72 million Americans save for retirement since it was created in 1978.
New U.S. Department of Labor rules go into effect next year, that require disclosure of all the previously hidden fees being collected by Wall Street and the financial services industry. Many will discover why their saving have never grown beyond their annual contributions.
The regulatory burden on the employer moves to levels never seen before, while at the same time, employees are demanding access to their savings in order to gain better control over their investment results.

Even Mr.Ted Benna, the “Father of the 401(k)” has announced there has to be a better way to save for retirement. See the SmartMoney article at:  SmartMoney

Congress and the White House have their sights set on a “New Plan” you’ll begin to hear more about as they search for ways to fund government spending. It’s the GRA (Guaranteed Retirement Account) and all employers will be required to participate.

If you have yet to review the 2011 Year-End Tax Checklist, get a copy  HERE

Begin making plans now to take control of your Retirement Plans in 2012.

2011-11-23  »  Thom