Fourward Thinking: Your 401(k) Game Plan
By Nick Hemsted
Auto-enrollment is the starting line—not the finish line.
Defaulting employees into your 401(k) is great—but too many stay at 3%. Set higher default rates and automatic escalation to help them build real wealth. Most won’t opt out.
Match formulas send a message.
A good match encourages participation and builds goodwill. A bad match wastes budget and underwhelms employees. Align your match with your talent strategy.
Plan design affects morale.
A stingy match, slow vesting, or complex enrollment can feel like a disconnect. Align your benefits with your culture. Your people will notice.
Low participation? Don’t blame the employees.
Blame unclear communication, clunky enrollment, or a lack of education. A great plan is easy to understand and easier to join. Don’t blame the players; fix the playbook.
Planning doesn’t have to be about control.
It can be about freedom.
We work with people who want more intention - not more to-do lists.
Disclosures: This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Legacy Financial Group does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results.
Mutual funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing in Mutual Funds. The prospectus, which contains this and other information about the investment company, can be obtained directly from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.
