How Average Returns and Tax Deferrals Affect Most 401(k) Plans

<div dir="auto">Average returns don’t mean actual returns. On the surface this doesn’t sound like it would be a huge issue. But it is. </div> <div dir="auto"> </div> <div dir="auto">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. </div> <div dir="auto"> </div> <div dir="auto">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). </div>