Seeking New Investment Options in a 401(k) Plan

Recently I wrote a piece on how a 401(k) plan can make lousy retirement plan. One of the reasons I cited is the lack of high quality investment options in the plan. The missing qualities can include low-cost, variety, and suitability to changing market conditions. Read more

Why 401(k) Can Spell “Lousy Retirement Plan”

Mr. ToughMoneyLove doesn’t have have a pension plan or a golden parachute.  When I leave my job for good, my employer will say thanks (by then, probably more like “thanks for finally leaving”) and cut me a small check for the book value of my stock in the business.  

Our retirement income will depend on other assets plus Social Security.  A large (but shrinking) part of those assets is my 401(k) plan.  Discounting 2008 and 2009, I’ve been happy with it.  But for many people, 401(k) plans can make lousy retirement plans.  That’s why I will continue to do a lot of investing outside my 401(k) plan.  I actually have reasons, starting with…. Read more

Will Your Retirement Nest Egg Be “Puny”?

Financial Planners are Not Happy with Retirement Planning by U.S. Workers

I don’t really enjoy starting the weekend with bad news but it seems that financial planning professionals are now openly complaining about their clients.  They are complaining about working adults of all ages.  They seem to be particularly upset with baby boomers, the bulk of whom are scheduled to start retiring in 2011.  Why?  Because we are all grossly unprepared for what is to come, as in too much life span left at the end of the retirement nest egg.  Mr. ToughMoneyLove wants to explore this a little further. Read more