Employee 401K Plan: Education and Communication

Many of us with an employee 401K plan are not experts on stocks, mutual funds, interest rates, and long range retirement planning. When your business or organization develops or enhances your employee 401K plan, it needs to be focused on your needs as an employee and hopefully will include strong communication and education commitment from the investment advisors. This is often a key to your successful retirement plan.

You should identify goals, based on several key variables before you can make investment plan decisions. These key factors are time, rate of return, and money, and are individual for each person.


Your age and the amount of time left before your retirement should be considered before choosing investments for your employee 401K plan.

Rate of Return

Determining which investments’ rate of return potential are most effective for your retirement financial goals is an important step to customizing your personal retirement strategy.


It’s important to determine the amount of money available to be invested in your employee 401K plan. This not only includes current salary, but also your personal expenses, and future financial needs.

In addition, you should carefully consider things like insurance, whether your home is paid off, and how much money you will need to live a secure life.

With these pieces of your retirement investment factors decided, you can now begin to make some decisions on how to invest your money.

Next you will need your employee 401K plan advisors to explain your choices for investment instruments and how each one works, in order to determine the benefits for you and your retirement goals.

This process of the financial advisors listening and educating you is a vital part of determining what is best for your personal retirement plan.

Your employee 401K plan advisors are responsible for providing educational resources, answering questions, listening to your needs, offering suggestions, and explaining how to determine the best way to work towards your goals, and create a customized retirement plan that will serve your future needs.

Your employee retirement plan administrators should provide education meetings, personal consultations, analysis to compare investment options, and worksheets to help you make decision based on what fits your personal needs, taking in to consideration, time, rate of return, and available money to invest.

With education and direct communication from your employee 401K plan advisors, you will be able to make confident and intelligent decisions for your financial retirement future, choosing the appropriate investments that will fit your lifestyle and financial goals.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.