Julius Caesar once said "Experience is the teacher of all things." For 401(k) investors, experience is often the sole teacher. We've seen quite a few 401(k) investors experience the fine fruits of a lifetime of investing discipline. For too many investors, though, it's only when they're older and "experienced" do they finally understand the missed opportunity of taking correct action in their younger years. If lack of experience is the disease, then a good 401(k) education program is the cure.
Alas, we regrettably see 401(k) education losing the priority battle to investment style arguments, day-to-day business needs and the goings-on of everyday life. Worse, when naïve 401(k) plan sponsors finally agree to support an education program, they frequently cede its design to a conflicted service provider with an aptitude better suited to sales than teaching.
By definition, plan sponsors are expert in their business, not in behavioral finance. Notice what I just said: "behavioral finance." Notice what I didn't say: "investments." Even many financial professionals confuse a good 401(k) education program with a good investment seminar. Nothing can be further from the truth.
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Christopher Carosa
Chris Carosa has been writing a weekly article and monthly column for BenefitsPRO online and BenefitsPRO Magazine since 2011 and is a nationally recognized award-winning writer, researcher and speaker. He’s written seven books, including From Cradle to Retire: The Child IRA; Hey! What’s My Number? – How to Increase the Odds You Will Retire in Comfort; A Pizza The Action: Everything I Ever Learned About Business I Learned By Working in a Pizza Stand at the Erie County Fair; and the widely acclaimed 401(k) Fiduciary Solutions. Carosa is also Chief Contributing Editor of the authoritative trade journal FiduciaryNews.com and publisher of the Mendon-Honeoye Falls-Lima Sentinel, a weekly community newspaper he founded in 1989. Currently serving as President of the National Society of Newspaper Columnists and with more than 1,000 articles published in various publications, he appears regularly in the national media. A “parallel” entrepreneur, he actively runs a handful of businesses, including a small boutique investment adviser, providing hands-on experience for his writing. A trained astrophysicist, he also holds an MBA and has been designated a Certified Trust and Financial Advisor. Share your thoughts and story ideas with him through Facebook (https://www.facebook.com/christophercarosa/)and Twitter (https://twitter.com/ChrisCarosa).
