The Money Ladder 401(K) Optimizer©

A 401(k) plan is a retirement savings plan offered by most employers to their employees. A portion of your paycheck is deposited into your 401(K) plan along with any contributions your employer makes to the plan. The major attraction of these plans is that the contributions are taken from pre-tax salary, and the funds grow tax-free until withdrawn. A 401(K) plan is easily the most important tool you have for building your retirement nest egg. Moreover, a 401(K) is your first true asset that you can depend upon in financial hardships.

However, only two-thirds of Americans who have access to a 401(K) plan actually end up taking advantage of them. Out of these, only 10% actively monitor their 401(K) accounts and rebalance them each year. Younger people, who are farther from retirement, are even more guilty of “401(k)-phobia”, the fear of looking at 401(K) statements and making changes to it.

If this sounds familiar to you, The Money Ladder’s 401(K) Optimizer© is for you.

How Does It Work?

To optimize your 401(K), our advisor will start off with an information gathering session. The most important part of designing an effective 401(K) is learning about you. Your goals, plans, lifestyle, constraints, and appetite for risk, family obligations and many other things that determine what you want from your 401(K). Our advisor will also collect information about all the investment options available to you through your employer.

Next, our advisor gets to work using our proprietary optimization methods to redesign your 401(K). Combining thorough research on all investment options with in-depth knowledge of your short-term needs and long-term goals, the advisor will come up with an optimized 401(K) plan and a detailed report that explains it to you.

Some of the key technical aspects that go into designing your optimized 401(K) are shown below.

Asset allocation

Sector/Asset Type/Geographic diversification

Monthly return analysis for your 401K Portfolio

How Does This Help Me?

A 401(K) is like any other investment and if managed well, it can make a difference of several hundred thousands of dollars at retirement. This can empower your other financial decisions throughout life. It is also important that a 401(K) is based on your goals and lifestyle. For example, if as a young investor you are most concerned about growing your portfolio, but the funds in your 401(K) are conservative, slow-growing investments then there is a mismatch between your goals and your 401(K). Our optimization process finds and corrects such mismatches.

The final report you receive provides you with not just the technical aspects of an optimized 401(K), but also a detailed explanation of how it impacts your finances. Our ultimate goal is to empower you to approach retirement planning in an informed and confident manner.