We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • How to Fix Your 401(k) Plan

    December 4, 2011 by Dan Kadlec

    By Dan Kadlec | @dankadlec | November 28, 2011

    As the traditional pension disappears, the 401(k) plan is evolving into something that one day might actually be just as good. That’s saying a lot. The certainty of monthly income for life, which traditional pensions promise, is a high bar. Meanwhile, 401(k) plans have taken their licks.

    Collectively, 401(k) plans lost $1 trillion during the recession, ruining any shot of retiring soon for many in their late 50s and 60s. These retirement plans also require ordinary people to make decisions about confusing investment options, and when you retire there is no guaranteed income.

    So the venerable 401(k) needs some fixing, or we need another kind of national savings plan. But before we dis the 401(k) further, consider that it was never meant to be a primary source of retirement security; it was conceived as a savings program to augment traditional pensions and Social Security benefits.

    The real problem is that companies began dropping their traditional pensions three decades ago and Social Security benefits also have been eroding. Now the 401(k) is being asked to fill every gap. It’s like expecting your car to float and fly, too.

    And yet maybe that day will come. Some plan sponsors are making strides in this regard. The TIAA-CREF Institute has been advocating for the kind of 401(k) plan that would fill most voids left by fading (or failing) pension plans and the crumbling Social Security safety net. The key tenets of a 21st Century 401(k) plan, says TIAA-CREF, include:

    Automatic enrollment. Employees should be automatically entered into the company 401(k) plan upon becoming eligible, unless they sign paperwork to opt out. This is the only way to get nearly all workers into a plan. When TIAA-CREF made this change, enrollment went from 63% to 95% of employees and the average salary deferral rate more than doubled to 7%.

    Generous match. Many plans match 50 cents for each $1 an employee contributes up to 6% of salary. TIAA-CREF matches dollar for dollar up to 3% of salary. This makes it easier for workers to capture the full match and save enough to produce an adequate retirement income.

    Appropriate investment options. To manage risk and properly diversify, employees should have sufficient but not overwhelming investment options. These options should be clearly labeled as growth, aggressive growth or income and as either domestic or international.

    Annuities for lifetime income. The investment menu should include annuities for older workers who want to lock up guaranteed income for life even before they retire. Workers should also have the option of easily converting a portion of their 401(k) savings to an annuitized payout plan to enable them to cover, at a minimum, their core living expenses in retirement. This is a critical tenet because it allows a plan participant with enough assets to replace the guaranteed income that a traditional pension offers.

    Healthcare savings. Healthcare expenses are routinely cited as retirees’ biggest worry. A modern 401(k) plan should include a healthcare savings vehicle with a separate company match.

    Financial education. Without personalized, one-on-one portfolio advice, many employees just won’t get it right. Annual expert consultations, with incentives to attend, solve a lot of problems flowing from lack of investment know-how.

    How does your 401(k) stack up? Don’t be afraid to ask for change. Companies have dropped more than just their traditional pension plans over the years. Profit sharing numbers are down. So are the number of companies that match 401(k) contributions (though those have been trending higher the past two years). Some broad-based stock option plans have been eliminated, too. Meanwhile, corporations are sitting on tons of cash and after layoffs may even have fewer employees. They’ve got the resources to fix their 401(k).

     

    Originally Posted at Time on November 28, 2011 by Dan Kadlec.

    Categories: Positive Media
    currency