Your company plan:
Structured to help you succeed
"Someone's sitting in the shade today, because someone planted a tree a long time ago." Warren Buffett
Retirement is so twentieth century. Before then, people worked until they no longer could. But the Great Depression and WWII led to the establishment of social security as a means of reducing unemployment and inducing older workers to step aside for returning vets. Somewhere along the way, Madison Avenue sold the idea of getting a gold watch at age 65 as part of the American Dream.
But the twenty-first century is bringing new economic realities and new ideas about retirement. People are living and staying active longer, which means their savings must last longer. At the same time, costs have skyrocketed, while responsibilities for saving and investing have shifted to our shoulders. Fewer people expect to retire at the traditional age, and a growing number of people wouldn't if they could. Instead, they think of this period in their lives as a chance to "downshift" and pursue personal and professional bucket lists. Instead of "retirement," more people think of "financial independence" -- the freedom to choose how we spend our time.
Open architecture. Why it's important to you.
The new century also is bringing new "open architecture" 401(k) plans, like your company's plan, centered around the needs of employees rather than the profit motives of the insurance, mutual fund and brokerage companies that sell plans. Open architecture plans separate out the functions of custodian, record-keeper, financial advisor, fund investment manager, and administrator; eliminate revenue sharing; and provide fee transparency. The movement is driven by new record keeping technology, innovative thinking among the nation's fee-only, fiduciary advisers, and concerted pressure from employers and employees who had long suspected they were getting mugged on Wall Street.
Read our article Rethinking 401(k) Plans: How Open Architecture Can Benefit You to learn how your plan is designed to maximize your retirement savings, provide unconflicted, professional guidance, and help optimize your investments by focusing on investment principles that truly matter.
Whatever your vision of retirement and whatever your situation, whether you are just starting out or preparing to downshift, TWM is committed to helping you succeed by design.
Read more here: How Open Architecture Can Benefit You