401k Benefits are Getting Worse

Squeezed 401k

The word on the street from Bloomberg is that employers are holding back on the amount and the timing of 401k matching funds and they are also dragging out vesting schedules.  

The article states that this isn't just happening due to small companies making the change. We are talking about some of the biggest companies out there that are making these changes. What companies you ask? Whole Foods Market, Facebook, Oracle, JPMorgan Chase, are just a few of the companies following the trend to change how their 401k is structured. These changes affect employees and could mean loosing thousands of dollars in their 401k by the time they retire. To read in full check out Companies Squeeze 401k Plans From Facebook to JPMorgan

What Can You Do If This Is Happening To You?
There is no substitute for free money that comes from an employer match. You just have to face the facts here. There are still some other ways you can save for your retirement. First before anything get informed. Find out what this means for you. What changes have been made and what are still being implemented to your 401k program? Once you know the facts you can begin to make sure you are on track for your retirement.

One thing to note is that you can always invest in a IRA. If your company is going away from 401ks all together you will want to look into setting up your own IRA. If you want to be more involved with your retirement you can also open up your own self directed IRA or self directed 401k. These types of accounts are just like a normal IRA or 401k but they allow you to invest in things that aren't normally open to you. You can invest in real estate, gold and even other businesses.

It is a tragedy to see companies removing and changing great retirement benefits. Retirement is a big step in our lives. It is something we need to be ready for. Today far to many people are finding out that they are going to run short on their retirement and these little changes that companies are making could really make the difference. Be grateful if your company still offers a 401k as today those companies are fewer and fewer. Again, it is sad to see big companies making lots of money lower some of the benefits they give but you can still retire knowing you'll be ok as long as you plan accordingly and keep on track to save what you supposed too. If you don't know how much you should be saving to have enough money for your retirement figure it out.

Don't let companies ruin your retirement. Take control of it today. You can invest how you want with your retirement accounts with a self directed account whether it be a self directed IRA or 401k. Remember you have the ability to invest how you want with self directed accounts. It is quite amazing and many people don't realize this. Let us help you out.

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