How Average Returns and Tax Deferrals Affect Most 401(k) Plans
Average returns don\u2019t mean actual returns. On the surface this doesn\u2019t sound like it would be a huge issue. But it is.\xa0 \xa0 In addition, the benefit of a 401(k) tax deferral used to be estimated about 9%, but not anymore. And fees continue taking a steady told each year which erodes your compounding base.\xa0 \xa0 These factors, as well as liquidity issues and insufficient accumulation of funds in most plans are prompting people to save in other vehicles even if they continue to use a 401(k).\xa0