Guest Article Remembering the Virtues of 401k SavingsBy Michael J. Francis, CIMA®, JD, President & Chief Investment Officer at Francis Investment Counsel. Saving for retirement is a lot more enjoyable when the market goes up. This year, checking your 401k account balance has evoked feelings similar to finding a lump of coal in your stocking. If this feeling strikes you as all too familiar, it's not your imagination. According to data from Morningstar, 2015 enjoys the dubious distinction of marking the lowest rolling 15-year average annual rate of return (3.96%) for the U.S. stock market in the last 80 years. Given the recent lack of support from the markets, it's no wonder that some are feeling frustrated with their progress toward their retirement saving goals. Let's take a minute to remember why a 401k program is such a powerful tool to help you overcome challenging markets and accumulate wealth for retirement. Here are my top 10 reasons to participate in your employer's 401k plan.
As difficult as recent market results have made building wealth for retirement, your employer's 401k plan offers numerous advantages that will help you achieve your goals. Now is good a time to investigate if you are taking full advantage of all the benefits your plan has to offer. You might also be interested to know that after the two other previous lows in the 15-year rolling period average annual rate of return, 1942 and 1974, the average annual rate of return from the stock market in the subsequent 15 years was well above 10% per year. It is too easy to assume what has transpired recently will continue. History has often proved that assumption wrong. Francis Investment Counsel is a fee-only Registered Investment Advisor dedicated to providing independent investment consulting and employee education services to the qualified plan marketplace. The company delivers conflict-free investment advisory services to plan sponsors and also offers extensive education and individualized advice services to plan participants. Neither the information nor any opinion expressed in this article constitutes a solicitation for the purchase or sale of any security. Francis Investment Counsel does not offer personal tax or legal advice. The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company's benefits representative for rules specific to your plan. ### 401khelpcenter.com is not affiliated with the author of this article nor responsible for its content. The opinions expressed here are those of the author and do not necessarily reflect the positions of 401khelpcenter.com. This article is for informational and educational purposes only and doesn't constitute legal, tax or investment advise. | ||||
About
| Glossary
| Privacy Policy
| Terms of Use
| Contact Us
|