Working With Over 4,000 Plans, Here's The Biggest & Most Consistent Miss

I've been fortunate to be involved in supporting over 4,000 retirement plans, across six very different parts of the country, from the major metro area of Chicago to the most beautiful and rural parts of the country of Idaho, Montana, and Wyoming. Even though these parts of the country are very different, the biggest miss was consistent, whether downtown Chicago or off the beaten path in Idaho, and it's not what most people would expect.  

I found that the biggest miss in 401(k)s to be viewing the plan in a very narrow-minded and limited one-dimensional way, both from the employee and employer perspective. 

Is a 401(k) just a retirement program that will impact employees for decades down the road at age 65? Is it just another benefit that employers need to offer? 

No!!! It's not just that.  It's so much more.  

We need to change the narrative, change the perception and change the entire experience of the 401k.  It's the job of the advisor, with the employer's support, to promote & elevate a plan to its highest level so that it becomes both the Employees' & Employer’s most valued benefit.

For Participants

In addition to the obvious tax benefits & one of the most effective ways to accumulate assets & build wealth, 401k enables employees to Build Confidence in their Future and Retire on time with Dignity. It’s a benefit that will CHANGE LIVES!

For the Sponsor & Participants

If we accomplish this for participants on an institutional scale, the 401k is one of the most effective business productivity tools available. It’s hard to quantify, but upgrading the Retirement Program can change the culture of an organization, increase productivity and benefit in multiple ways below:

• Improve Quality of Life - Promote happier, healthier, more confident & optimistic employees
• Inspire Employee Loyalty & Reduce turnover. Improve Employee retention & relations
• Attract top talent.
• Help employees feel empowered, independent & in control of their future, achieve a sense of accomplishment, peace of mind, reduced stress improved health vs. fear, dependency, uncertainty & denial. 
• PR - Promote the Sponsor thru positive word of mouth in the community.
• Help EEs strengthen their families, have happier marriages & even reduce divorce rates
• Reduce health insurance costs thru a healthier work force with less stress and enabling older EEs to retire.
• Create a healthy & dynamic business model where older Employees can afford to retire & younger Employees can join the firm.
• Boost Morale & Productivity… create BUZZ & ENTHUSIASM at the work place!!!

I could go on but you get the idea

For America

The impact a high-functioning Retirement Plan has on Participants & Plan Sponsors has a cascading effect on the local community, region, state, and our country. High-functioning 401k plans help maintain America’s strength as the leader of freedom and independence and secure our position as the envy of the world.

One Plan Sponsor joked after I shared this and said “It sounds like 401k is the Secret to Life!” Maybe not, but we need to help people reframe & experience their 401k differently. It’s our responsibility & opportunity as advisers to help others understand. We are in a perfect business environment to review and upgrade your retirement program. You may need to fix it and beef it up with additional employer contributions and other key changes, but the impact will far exceed your expectations if done right.

Matt Ward - June 19, 2023