“To live is to choose,” writes Kofi Annan adding that “to choose well, you must know who you are and what you stand for, where you want to go and why you want to get there”. No, Mr. Annan wasn’t trying to offer suggestions on how to run a 401(k) plan for his employees or even what to do when faced with a plan that suggests you can be somewhere it has no intentions of taking you to in retirement. Yet we repeat this thought when we approach our retirement options: choice is good, regardless.
We all understand the importance of preparing for retirement and using the tools at our disposal in our 401(k) is often placing at our efforts at risk in the markets. What we don’t understand is the cost of that risk. More here.