401(k) Pre-Retirement Solutions

There is a fundamental flaw in the way that most Americans prepare for retirement.  The days of employer-provided pensions are all but gone in the private sector.  For most people, the vast majority of their retirement savings is in a 401(k), 403(b) or 457 plan, which allows them to direct their own investments among a menu of 15-20 diversified funds, hoping to convert those investments at retirement into a stream of income that will last them their entire lifetime.  The problem?  Every single employee is their own money manager, but they are not a professional money manager.  They know they have to save for retirement, and they know they need to put their money into something, but how much and into what evades most people.  To make it even harder, the employer sponsoring the plan is usually not allowed to give them any advice about how, specifically, to invest their money.  Out of frustration, many end up choosing a "target date" fund which is a very generic solution that has no consideration for the individual investor's risk tolerance.  Others try to build their own portfolios with little or no knowledge of investment strategies and often end up with a portfolio that is significantly more (or less) risky than what they believe it to be.  And too often, people just "chase returns" by reallocating to the prior year's best performing funds and end up dissatisfied with their results this year.  There is now a solution!