Let 2019 be the Year Your 401(k) Loses the Dead Weight

The ups and downs of the stock market are less of a retirement worry than the year-after-year drain of excessive fees. January 6, 2019 5 min read Opinions expressed by Entrepreneur contributors are their own. Running a marathon is tough! Running a marathon with a 50-pound backpack is darn near impossible. The vast majority of American’s are unknowingly running their retirement race with an unbearable load. The dead weight dragging us down are the excessive and unnecessary fees that plagues most retirement plans. The fees in most 401(k) plans, especially those with small companies, can exceed more than 1.5 percent annually and some are north of 2 percent. While those percentages sound small at first, consider their impact over the course of your life…. Let’s assume you get a 7 percent annual return over your lifetime. This is less than the market has averaged but on par with a typical […]

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Why Educating Employees About Retirement Plans Is Critical

Encouraging retirement savings is a leader’s responsibility. April 16, 2018 1 min read A Note From The Editor Think your company has what it takes to make our Top Company Cultures list? Apply now. Apply now » Opinions expressed by Entrepreneur contributors are their own. When it comes to 401(k)s and retirement plans, it’s important to help your employees out as much as possible. Make sure they take the time to learn how the plans can have a positive and outsized impact on their lives down the road. But, don’t make it too easy. Don’t just hand them brochures and paperwork and walk away. Seminars and classes can be very helpful, but make sure they are relevant to younger workers in both content and delivery. Think about how technology can help these employees learn how money grows. It will become one of the most important lessons they ever learn. Related: Think […]

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Younger Team Members Often Don’t Enroll in Retirement Plans — But That Can Hurt Your Company

February 21, 2018 1 min read A Note From The Editor Think your company has what it takes to make our Top Company Cultures list? Apply now. Apply now » Opinions expressed by Entrepreneur contributors are their own. It’s important for companies that offer retirement plans to get everyone to participate. Not just to help the employees, but to help the plan meet its compliance requirements. Unfortunately, all too often younger workers, especially those new to the job, don’t sign up. They’re too busy. They don’t see themselves retiring anytime soon. They need the money for rent, a car, paying off college loans, a trip to Bali, etc. We all know the excuses. This is particularly relevant to entrepreneurs, given that startups, in particular, tend to hire armies of younger workers.  One solution is to enroll employees automatically and then make sure they’re increasing their contributions each year.  Ideally, employees should […]

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