This time of year you start seeing them everywhere!
“Tax Planning For Year End”
“Charitable Giving Planning”
“Harvesting Losses”, and on and on.
Well, I’d like to take this opportunity to talk about the Year End Planning that no one wants to talk about.
The kind I’m talking about is kind of like that spoonful of black-strap molasses that your mom gave you as a child – because it’s GOOD for you!
Man I hated that stuff.
I would hide for hours hoping she’d forget about it. Now, craziest thing – one of my favorite cookies is those Molasses Crinkles? You know the ones you make at Christmas? Go figure.
So the year-end planning that may not be on the top of everyone’s list but it SHOULD be because it’s GOOD FOR YOU!!
The 401(k).
I’ve mentioned before to many of my clients that I think the 401(k) was one of the most dangerous things ever introduced to Americans. Now don’t get me wrong, I loved my 401(k) and I managed it well and made lots of money. But I’m in the business! You aren’t – and my experience is that 95% of American workers in a 401(k) put money in, aren’t really sure what it’s invested in, and forget all about it until they change employers.
Did it make money? Lose money? They have absolutely no idea, because they never looked at it.
And this doesn’t even count the people that didn’t bother to enroll!
My husband mentioned a co-worker of his in his mid-40’s that never enrolled their company plan. He harasses him about this often (I’ve trained him well.) But last week, he did the math and had gotten $3,000 so far in 2013 in Employer Match Contributions. Boy did he let the other guy have it! Seriously? You just gave away $3,000! What’s wrong with you? What are you waiting for?”
But I digress…..So here’s your assignment for your molasses year-end planning. Your kids, nieces, nephews, even friends if you’re brave; ask them to review the investments in their 401(k) plans. They’ll tell you they don’t have any idea what to review. Tell them to put in a call to their plan administrator and ask for some year-end guidance. I PROMISE you, the help is there for them. They just have to ask. It’s actually the law now because of all the investors that got hosed in the 2007-2008 meltdown. If they haven’t re-balanced, they’re subject to far more risk than they were a year ago.
And if you are one of those people that hasn’t looked at your 401(k) in over a year, open wide! Here comes the spoon! Contact our team for a complimentary consultation and let us help you review the investments in your 401(k) plan.
