The basic Retirement Plan Designs professional advisors promote are poorly driven horse and buggy vehicles which ignore the opportunities for helping the average worker amass a large fortune by retirement day. Instead of contributing just 7% of wages to their 401k plan each year every worker can be contributing this year $19,500 – as provided for in IRS Rules.
Additionally every employer can be making a matching contribution to every employees 401k plan – as encouraged by IRS Rules. Which would then give every employee $39,000 each as total contributions to their 401k plans.
This is what IRS promote – yet professionally designed plans by licensed advisors set contributions at around 7% of wages. This appears to be a major disconnect and a serious mistake by advisor disgracefully limiting a worker’s retirement options.
There is no sanity in the recommendations being made by licenced 401k advisers – and reason fort workers to look elsewhere for help with there 401k programs. Likewise Employer contributions and far from the maximum advocated by IRS. If your adviser does not get with the program recommended by IRS they should be ditched – it is your financial future at stake.
A basic course in Economics, 8th grade Math and simple logic are all that is required for a financial planner to be able to work the numbers in order for the average worker to receive an additional $300,000 in their Retirement Day nest egg for zero outlay. Which would be a major improvement to the serious deficit workers are looking at in respect of a decent retirement.
You might question why financial planners are behind the 8 ball, accountants with them and also Life Agents. The apparent reason appears to be financial incompetence. A sad fact is this is industry wide – and little change of an improvement unless they learn 401klever principles and applications.
Training is available for all other than cretins. Ask your advisor if they are from Crete?