Just today, TIME Magazine hit newsstands with the cover story Why It’s Time to Retire the 401(k). This article hits on several points about why clients close to retirement, those between 55-65, should roll their 401(k) to something safer, and something with an insurance guarantee.
Here is a small sample from the featured article:
“The ugly truth, though, is that the 401(k) is a lousy idea, a financial flop, a rotten repository for our retirement reserves… In what must seem like a cruel joke to many, the accounts proved the most dangerous for those closest to retirement. During the market downturn, the 401(k)s of 55-to-65-year-olds lost a quarter more than those of their 35-to-45-year-old colleagues. That’s because in your early years, your 401(k)’s growth is driven mostly by contributions. You control your own destiny. But the longer you hold a 401(k), the more market-exposed it becomes. It’s a twist that breaks the most basic rule of financial planning.’’ The article then goes on to say that those near retiring need to have an insurance plan for their funds, or else 44% of Americans are in danger of going broke during their retirement years.
What a powerful statistic to use in client appointments and meetings! For a complete copy of the TIME article, please contact me today. the goal is you can always use my materials to help clients make better decisions.
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