Principle no. 6: Manage Risk By Outsourcing
No matter how smart people are, they cannot be experts at everything or do it all alone. By outsourcing the management of their investments and opting into a target-date fund or managed account based on their age of retirement, the average 401(k) participant can access the skill, knowledge and expertise of investment professionals better suited to managing their long -term investments.

Principle no. 7: Control Fees And Expenses
Like all good entrepreneurs, participants must learn to keep down costs associated with their Paycheck Manufacturing Companies in order to maximize their returns. Plan participants should learn about the types of fees that are associated with their plans and the reasonableness of those fees for the services they are getting.

Principle no. 8: Guarantee Paychecks For Life With Annuities
More companies are offering "lifetime income alternatives" within 401(k) plans. These alternatives behave similarly to annuities, which have many benefits and can offer participants peace of mind. However, they are not right for all investors. Participants should be educated about annuities and then decide about using them.

Principle no. 9: Take Advantage Of Tax Benefits With A Roth
The truth is that people don't know what tax bracket they will be in when they retire. For this reason, some people prefer contributing to their retirement with post-tax dollars into Roth accounts. When they reach retirement, all the money they've accumulated in their accounts will be theirs to use, without the worry of taxation.

The job of every financial advisor is simple. Educate participants to help them create a paycheck for life, so they are financially secure during their retirement years. Anything less is failure.

Charlie Epstein, CLU, ChFC, AIF® is the founder of The 401k Coach Program, which offers training for financial professionals to develop the skills, systems and processes necessary to excel in the 401(k) industry and facilitate successful retirement outcomes for plan sponsors and participants. He is the author of the book, Paychecks for Life. He has frequently been named to 401kWire's Top 100 Most Influential People in the 401(k) Industry List and Top 300 Most Influential DC Advisor List. He is a member of the Legg Mason Retirement Advisory Council. He can be reached at [email protected]. For more information regarding his Paychecks for Life program, please visit www.paychecksforlife.org.

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