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What Every 401k Plan Sponsor and Fiduciary Should Disclose to Employees: How to Retire a Millionaire (Hint: It’s Easier Than You Think)
By Christopher Carosa, CTFA | February 25, 2014
I happened to stumble upon the answer to this age-old question while counseling a group of Boy Scouts for their Personal Management merit badge. The answer was so obvious – and so easy – that I have since worked it into almost every 401k employee education program I do. To discover the answer, I’ll refer back to a 2012 Wharton Study. That study discussed the four factors that lead to retirement success (defined as “saving enough to retire in comfort”). Furthermore, it revealed you can control three of those factors. Of those three, one is most critical and the easiest to achieve.
This is an article about that most significant component to retirement success.Are you ready? Here it is: Invest Early.
Anthony VanDyke, President of ALV Mortgage in Salt Lake City, Utah is an example of someone who started saving in an IRA as a teenager. “I started saving for retirement as a teenager,” says VanDyke. “The reason I started saving early is because of something my high school math teacher once told me, ‘There are two types of people in this world. Those who pay interest, and those who earn interest.’” Still, VanDyke believes it’s primarily the parents’ duty to lead by example. “I think it is hard for teenagers to save for retirement because they do not see their parents saving for retirement. Over 80% of my mortgage customers have no retirement savings. Either they have never saved. or they wiped it out over the last few years during the financial crisis.”Continue Reading at http://fiduciarynews.com/2014/02/what-every-401k-plan-sponsor-and-fiduciary-should-disclose-to-employees-how-to-retire-a-millionaire-hint-its-easier-than-you-think/