401(k) & IRA Review

Is Your 401(k) or IRA Actually Working for You?

Most retirement savings sit in a 401(k). It’s a familiar default, and for good reason, it’s what most employers offer. But it’s worth understanding where that default came from: the 401(k) was originally adopted as a cheaper substitute for the employer-funded pensions companies could no longer afford, with some employer matching added as an incentive to accept the shift.

The Gap Most People Don’t See Until It Matters

A standard 401(k) or IRA offers no built-in protection if the market drops. In 2008 the S&P 500 fell about 38%, and it took years to climb back. A drop like that is simply yours to absorb, and the arithmetic afterward is worse than most people expect: $100,000 becomes roughly $62,000, and a later 20% gain is calculated on the $62,000, not on what you started with. On top of that, every dollar you eventually withdraw, principal and growth alike, gets taxed as income.

When that drop lands matters as much as its size. At 35, a bad year is something you have decades to wait out. At 65, when you’re drawing on that money, the same drop means a smaller monthly check from then on, with less left to recover with. People hear about 2008 and nod, until it happens to them, or to their parents.

This page describes general considerations about 401(k) and IRA accounts, not advice specific to your plan. We don't manage securities or investment accounts; this review looks at where insurance-based protection strategies may fit alongside what you already have.

What a Review Actually Covers

We’ll look at what you currently have, where the real gaps are, and what insurance-based options exist to add protection without starting over from scratch.