4 reasons to be thankful for 401(k) plans

There are many things we can be thankful for this Thanksgiving week – our families, our friends, our jobs, our country. When I think of Thanksgiving I always picture Norman Rockwell's Four Freedoms paintings: Freedom from Want, Freedom from Fear, Freedom of Speech and Freedom of Worship.

While 401(k) plans may not be the perfect retirement plan vehicle, they do have a number of important attributes that most of us probably take for granted:  

1. Freedom to direct your investments. Isn't it wonderful to know that you have control over your 401(k) plan account and if you manage it correctly you can end up with a fantastic retirement?

Also see: Reasons to be thankful this holiday season

2. Freedom and ability to accumulate retirement savings. We live in a country and at a time when most of us are able to earn more than enough to live on. We can actually save some of our earnings for our retirement! Our economic system, entrepreneurial spirit and work ethic make this possible and are unique in the world.

3. Freedom of fear from loss. Our 401(k) plan savings are tucked safely away in trust accounts, free from interference from our employers and the government. Laws exist to preserve our 401(k) accounts in the event of our bankruptcy and protect them from seizure by creditors. These, and a number of other features, give us solid reasons to believe in the possibility of retirement.

4. Freedom to get smarter and obtain help. Many tools are available to help participants become better investors. Nearly all plan participants have the option of receiving investment advice from a professional. And all these services are available at no charge! Nothing stands in the way of a motivated saver who wishes to create the retirement of his/her dreams.

Also see: 6 ways to show gratitude to employees

Thank you for reading and commenting on my posts throughout the year. I hope that you and your family enjoy a wonderful Thanksgiving.

Robert C. Lawton, AIF, CRPS is president of Lawton Retirement Plan Consultants, LLC, an RIA firm helping retirement plan sponsors with their investment, fiduciary, employee education and compliance responsibilities. He may be contacted at bob@lawtonrpc.com or 414.828.4015.