12/10/2007

It's a Bird, It's a Plane, It's Super 401(k)!

Hello:

Next year, many companies and organizations will start to offer the Super 401(k)s. Like a traditional 401(k) retirement savings plan, the Super 401(k) will be based upon employee contributions with employers matching a portion of the contribution. What is "super" is that the employer contribution matches will be "Super-sized" with the caveat that the majority of the funds will be invested in investments with target dates that approximate the employees expected date of retirement.

Unlike a pension plan, if the investments with a target date do not perform, it is the employee's problem, not the employer's problem.

Guess there still is no free lunch!

Overwhelmed by your employer's benefits package? Unsure how the company benefits dovetail with your financial goals? Have us write a financial plan for you and your family, and let us help you understand your group plans.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager