Easy 401K Management

The Principle:

Is easy savings a good thing or a bad thing? Brian talks through what to consider about the ease of a 401(k) as well as what you need to be aware of when it comes to your overall retirement plan.

Honest Takes:

USA Today recently published an article talking about how to manage your 401(k) without lifting a finger. What does Brian agree with when it comes to managing your 401(k) with ease? How should your financial advisor help?

Consider this: where should you put your 401(k) into? Brian says a lot of people don’t realize that they have a Roth 401(k) available. A 401(k) is easy to set up, which is why so many people have the majority of their savings there. Having an automatic savings program is easy to set and forget. While some parts of that article are accurate, just keep in mind that the 401(k) is a small part of your overall financial plan.

For instance, consider inflation. The Fed says the inflation rate is temporary, but is it? Everything from the cost of milk to buying a new car feels more expensive right now. Where is that cost going? If you keep too much money in the bank, you are losing money “safely” because it can’t keep up with inflation.

If you should have more money in investments but you need to withdraw money in retirement, where should you take it out of? Brian shares a story with a client who wanted money now. Remember though that you should invest differently in the money you plan to use sooner than the money for decades down the line. Work with your advisor to find the right funds for you and your situation.

Listen to the entire episode or skip ahead using the timestamps below.

[0:12] – How can you manage your 401(k) easily?

[3:58] – What else goes into a retirement plan?

[5:22] – Is the current inflation temporary?

[8:07] – Are you losing money “safely”?

Today’s Truth:

“The 401(k) is such a small part of your retirement plan.”

Brian Bowen


The Host:

Brian Bowen – Contact