Welcome to RightPath 401k


PARTICIPANTS, we've made 401(k) as easy as 1, 2, 3!




 

Welcome IFA 401k Plan Participants

Today, most of the time we are focused on meeting our current financial needs. But more and more each of us must pay attention to the other purpose for which we work -- to fund whatever it is that we’d like to do during our retirement. Social security will not be enough, nor is the notion of becoming a financial burden to our family in our golden years particularly attractive. This 401(k) retirement plan is designed to help you attain greater control of the quality of your life after you stop working.

 

A 401(k) is one of the best ways for you to save for your retirement. Now you also have access to optimal academic investment strategy to supplement your savings thanks to this significant benefit provided by your employer. This site explains the many virtues of the index funds investing strategy as well as the steps for you to implement it.

 

We have provided an overview of IFA’s 12-Step Program for Active Investors.. If we can assist you further in your understanding of this material please feel free to call toll-free at 888-643-3133.



In their own words:

 

"If we could choose only one family of funds for the ideal 401(k) plan, it would be Dimensional Fund Advisors. We believe DFA's institutional index funds are the best, and employees whose plans include them are fortunate...In 2001, a portfolio of DFA funds weighted equally among the asset classes we listed above would have appreciated by 1 percent. Doesn't seem like much but it's much better than the 12 percent loss in the Standard & Poor's 500 Index and the 23 percent decline by the average large-company growth fund."
- Paul Merriman, CBS Marketwatch, A world-class menu of 401(k) choices
Jan 16, 2002

 

 

[In the article,] he continues to advocate ending the current brand recognition contest and replacing competing fund choices with pre-built portfolios at different levels of risk. Those portfolios, in turn, would be constructed with large doses of index and enhanced index funds combined with smaller doses of proven active managers. The combination would result in a dramatic cost and risk reduction -- and make our largest and most successful savings vehicle less of a lottery.

- by Scott Burns, "What Your 401(k) May Look Like." Both referring to a paper by M. Barton Waring, "It is 11pm, Do You Know Where Your Employees Assets Are?" Call us toll free at 888-643-3133 to obtain a copy.

 

 

"Low-cost indexing is the magic ingredient to creating a model 401(k) program."
- Lynn O'Shaunessy, What’s wrong with your 401(k) -- and how to fix it. www.msn.com, 4/1/02

 

 

"The typical fund company services [401k plan] participants in the same way that Baby Face Nelson serviced banks."
- William Bernstein, Riding for a Fall, The 401(k) is likely to turn out to be a defined-chaos retirement plan.

 

 

An examination of plans sponsored by five leading financial services firms reveals that from 1995 through 1998, none had returns that matched a simple index of 60 percent stocks and 40 percent bonds. Although these companies offer investment advice to the public, the investment choices of their own employees underperformed the market index by 3.2 to 10.5 percentage points.

Recommendation: Premixed Portfolios and Professionally Directed Investments. Since index funds and the managers of defined benefit pension plans have historically produced higher yields on investments, companies adopting the American Freedom 401(k) plan would have to agree to include in participants' options premixed efficient portfolios - ones that give the maximum rate of return at different risk levels - or a professionally directed investment option or both.

Source: NCPA Policy Report No. 248, December 2001, Brooks Hamilton and Scott Burns



QUESTIONS AND ANSWERS

When do you want to quit working? 

Imagine your ideal day. You can sleep in late, have a long lunch and relax in the sunshine all afternoon. In the evening time, you can visit with your family and friends. By saving for retirement with a 401(k) plan, you can have enough money to stop working and enjoy each day doing the things you want to do. In the United States, it's normal for people to live for 75 or 85 years and after a life time of hard work, you'll want time to relax.

You may think that it would be impossible for you to save part of your paycheck for your retirement. You probably have bills to pay, a family member to take care of and other financial responsibilities. But, there is a way that you can save, and it will barely cost you anything. With just a few dollars each week, you can easily save and begin looking forward to the day you can stop working. Your company's 401(k) plan may be the easiest way for you to save for retirement.

What is a 401(k)?

A 401(k) is a retirement savings account your employer provides. Every paycheck, a small percentage of your pay will go into this special savings plan before taxes. You can decide how much money you want to put into your account. At any point in time, you can decide to put in more or less of your savings or stop altogether. The decision is always yours.

 

Aren't I just giving my money back to my company?

No, when you save money in a 401(k) account, that money is yours. You are not giving your money back to your company and most companies actually give money to these accounts! Through matching programs, employees with accounts receive a set amount of money from their employers. This is like free money! Check with your company to see if they offer this program.

 

Why should I put my money away, what if I need it?

Most plans offer loan programs that will allow you to take money from your account if you need it for an emergency. With hardship withdrawals, you can withdrawal your money for financial hardships like medical bills, buying a house, or funeral expenses for immediate family members.

 

I thought the government was going to give me money when I retire. Why do I need a 401(k)?

Social Security was never intended to provide all the money you will need for retirement. People will have to depend on their own savings during retirement.


But I have family at home that I need to send money to each pay period. If I save in a 401(k), what will happen to the money I send them?

Even if you put a small amount of money into a 401(k) plan, you will still be able to send money to your family. Since 401(k) is tax deferred, it will not affect the way you are used to supporting your family. For as little as $10 dollars a week, you can have an account that will grow for your retirement years.


What happens to my money if I die?

Keep in mind that you people are living longer. You will probably be around long enough to enjoy your savings and your retirement. An employee who has a 401(k) is able to select who would receive their money if they were to die. When that person dies, the person they have chose will receive the money in their 401(k) account.


What happens to my money if I switch jobs?

Your money is always yours. There are several options you have when you switch jobs and you can transfer it to your new employer plan, leave it where it is or put it into a IRA. Keep in mind that no one is ever going to take your money away from you.