When the 401(k) was introduced in the late 1970s, it wasn’t meant to replace pensions—it was meant to supplement them. Born out of a little-noticed section of the Revenue Act of 1978 (Section 401(k)), it allowed employees to defer compensation tax-free into a retirement account. The idea was simple: give workers a tax break for saving, and employers a lower-cost benefit option.
For millions of American investors, retirement planning begins with a visit to a household-name advisory firm. Slick marketing, polished brochures, and the promise of institutional experience lure investors in. But beneath the glossy exterior lies a troubling reality: many of these firms deliver “cookie-cutter” plans that look nearly identical from client to client—regardless of individual needs, goals, or risks.
When the classic 60/40 portfolio sank in 2022—its worst year since the 1930s—it exposed a simple truth: relying on two assets that sometimes fall together is not diversification; it’s hope. Alternatives aren’t a fad or a billionaire’s hobby. They’re how serious allocators reduce sequence-of-returns risk, add inflation defenses, and create more durable income streams across cycles.
For high-net-worth retirees, required minimum distributions (RMDs) and Roth IRA conversions often feel like unavoidable tax burdens—yet smart strategies exist to substantially minimize the financial impact.
Every dollar counts in retirement, especially when you're paying someone else to manage your money. For retirees scrutinizing their spending, the standard 1% advisory fee charged by fiduciary financial advisors is often met with skepticism. However, nuanced data and expert analysis indicate this fee might not only be justified—but could significantly enhance your retirement outcomes.