Ep 57: The Weaknesses in 401(k) Accounts

The 401(k) and other employer-sponsored retirement plans can be a great tool to save for retirement but they aren’t perfect. Identifying the weaknesses within these accounts will help you better invest for your future.



Saving for retirement comes in many different forms but the most popular for many years has been the use of an employer-sponsored retirement account like the 401(k). As soon as we begin our working career, we’re told to contribute money into these accounts and we’ll be on track for retirement.

But with the pension disappearing all across America, retirement success is falling more and more on individuals to provide for their selves. With less room for error, it’s important to know exactly what you’re invested in and whether it aligns with your financial needs for retirement.

On this episode of the podcast, we’ll point out a few of the weaknesses you’ll find in a 401(k) account and why you might not be getting as much out of your investment as you might think. If you aren’t working with a financial advisor who is helping you understand everything in your plan, it’s not uncommon to be unaware of these shortcomings.

As always, we’re happy to sit down with you to evaluate your investment allocations to make sure you’re properly diversified and maximizing the money your contributing to your retirement accounts.

Listen to the full episode or use the timestamps to jump to a specific section. Thanks for listening! We’ll be back for another show every other Thursday.

Today’s Rundown:

1:12 – Administrative costs

3:16 – Mainly mutual funds

5:24 – Limited asset classes

6:14 – Subpar conservative investments

8:45 – Withdrawals aren’t easy



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