It’s no news that 401(k) plans have replaced traditional pensions as the main way for individuals to save for retirement. More than 35 years ago, 38% of private-sector workers had a pension and 19% a 401(k). By 2015, according to the U.S. Department of Labor, the numbers had more or less reversed — just 15% had a pension and 43% a 401(k).

Where the problem lies is among workers with different levels of education. All things being fairly equal as far as job type and pay, a college graduate tends to save 26% more than a worker with just a high school diploma, the study concluded. One big reason is that the lower paying jobs aren’t likely to offer a retirement plan.

This makes a good case for a financial advisor. And as any credible advisor will tell you, you don’t have to be rich to set up a comprehensive retirement strategy.

Wealth accumulation is built over time.
Mitigating risks around a wealth accumulation strategy means looking at the big picture and making sure you work to minimize risks associated with the forces (taxes, inflation, and market volatility) that take their toll on investments over time. A well-diversified portfolio that builds up wealth is based on a long-term approach, which means that you aren’t going to get rich at a young age.

Building on your investment strategy with various investments and asset classes is a nice way to round out your portfolio. ¬ Consider the role taxes play in 401k investing. While it is true that you will not need the annual income you did when working, and your tax bracket will likely be much lower in retirement, it’s always good to be prepared for fluctuating tax rates. Having a well-rounded portfolio that includes a 401k and other investments is a solid plan for the future.

If you have questions about what you need to plan for regarding retirement savings, visit us at And for more information on Keith Mooney or any particular advisor you would like to learn more, go to the Financial Industry Regulatory Authority’s website at

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Steverman, Ben. The 401(k) is wreaking havoc on retirement. ebn. 24, Aug. 2016