Fourward Thinking: Your 401(k) Game Plan
By Nick Hemsted
Fourward Thinking is about breaking things down into four manageable steps. Each set of tips is designed to help you approach your 401(k) decisions with clarity.
1. 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.
2. 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.
3. 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.
4. 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: The material presented by Nick Hemsted is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Actual economic or market events may turn out differently than as presented. Nick Hemsted is a Financial Advisor with Legacy Financial Group. Advisory services are provided by Legacy Financial Group, a registered investment advisor with the Securities and Exchange Commission. Materials posted to this site are from external sources and are provided for your convenience in locating related information and services. Legacy expressly disclaims any responsibility for and does not maintain, control, recommend, or endorse third-party sites, organizations, products, or services, and make no representation as to the completeness, suitability, or quality thereof.
