06/11/2026
3 THINGS THEY DON'T TELL YOU ABOUT 401(k)s:
1. Investing in your 401(k) means you'll be set for retirement...WRONG! 401(k)s were not designed to make you wealthy; they were designed to make Wall Street $$$$. 401(k)s were originally intended to supplement PENSIONS but companies started getting rid of pensions in the 1980s with the introduction of 401(k)s and other defined contribution plans. Also, depending on market fluctuations, you could see your 401(k) dwindle significantly or even expire - It is NOT a Lifetime Guaranteed Income!! You probably know people who used all their 401(k) or had to go back to work to make ends meet!
2. You Should Contribute MORE than your Employer to your 401(k)...WRONG!! If your employer is offering a match, by all means, take that free extra money - BUT KNOW if they are matching you dollar for dollar or a percentage to your dollar! By contributing more than your employer, you are literally putting more of your own money into a risk-based taxable retirement account, when you could be putting it into self-funded pension type strategy that would provide you Tax-Advantaged income when you withdraw it in retirement. Doesn't it make sense to create more guaranteed lifetime and tax-free income where you can? By the way, your employer is not obligated to contribute to your 401(k) and not all of them do!
3. Your 401(k) has FEES and probably more than you think! So many people I meet with think that their 401(k) has low or no fees and that simply is not correct. Over time, these fees can eat tens of thousands of dollars or more from your account! Be in the Know!
If you'd like to learn more about your 401(k), how it works, what other options you have, and how you can create more security in retirement, comment MORE below and we can schedule a call.
