401k Plan Stabilizations
History of the 401k:
401k’s have not been around forever, they were an attempt by the government to create a plan for benefit to the employees of a company to replace the well known pension plans that your Grandfather may have benefited from. They were not designed to be the sole retirement plan for an employee, HOWEVER, it seems that society at large is dumping 100% of their retirement dollars into these types of plans. The Pros of a 401k are the ability for the employer to contribute a percentage of the employees paycheck that the employee wishes to contribute themselves. For example; if an employee works for a company and contributes 6% or more of his/her income into their 401k, that employer will MATCH that contribution up to 3% or perhaps even 6% if the company is Liberal to help the employee with their Retirement. The largest benefit for an employee is to take advantage of the free money that the employer is contributing through matching premium dollars. If you are an employee who has contributed to their 401k, you will understand more about how this process works. BUT you may NOT know….and most people don’t…is where ALL those dollars are being invested. Typically, in any investment portfolio, the Broker will place 25-30% of your contributions into very LOW RISK stocks, bonds or Mutual Funds. HOWEVER, even the lowest risk stocks bonds and mutual funds have an IMMENSE POSSIBILITY of loss; just like the rest of your portfolio.
Here at Anchor Financial Group (AFG), we specialize in strategies to help stabilize a company’s 401k. What if you could take your 401k and roll it into an investment strategy that could earn you up to 13% without the risk of loss due to Market crashes? AFG helps to structure the employers 401k plan documents in such a way that is is compliant with government laws and regulations and allows funds to grow MORE without the worry of market downturns.