831-W144 Investing for Retirement
“The Retirement Gamble” discusses the retirement problem inAmerica, which has been intensifying for years. It focuses on thechallenge millions of employed individuals’ face, whose retirementaspirations are tied to defined 401(k) accounts (Smith, 2013). Thedocumentary states that half the working population is incapable ofaffording to save in retirement accounts, whereas a larger populationdoes not save for retirement. The documentary accesses critically theinherent disagreements amid the financial services industry, as wellas savers. It outlines how investment-associated fees cause harm toinvestment returns.
I agree that there are many terrible 401(k) plans, which results inpoor investment alternatives. It is also agreeable that mostretirement savers experience confusion, as well as frustration.
The lesson learnt is that as an employer or worker investing in the401(k) accounts, it is necessary to select a provider who takes afiduciary accountability. This refers to selecting a provider whoconsents in writing to acting according to the organization’s401(k) programs interest. This avoids bias and a plan that lacks thebest saving options (Smith, 2013).
Using index funds is an effective strategy presented in thedocumentary, which is applicable to prospect retirement needs. It isan effective strategy because it tracks a specific target like the“S&P 500”, as well as “Dow Jones Industrial Average”. Hotfunds from a year frequently drop below average in prospect years.Steady and correct indexes are an effective strategy towards gettingmarket proceeds. Steps to achieve this involve choosing a retirementsavings program that necessitates minimal management and obtaining ofa range of index funds.
Many group comments focus on the disadvantages of 401(k) plan. Fewhave focused on strategies towards dealing with the investment issuesmany Americans face, which is more important in ensuring individualsmake appropriate retirement investment choices.
Smith, M. (2013). The Retirement Gamble. PBS