The American Dream, Your 401(k), and Retirement Readiness

Investing in your future can be key to achieving the American Dream. A 401(k) plan can be a powerful tool that can allow you to save for retirement while benefiting from tax advantages and, often, employer matching contributions.

For many Americans, their retirement savings may largely be determined by the performance of their work-sponsored retirement plans, such as 401(k) plans. The average balance in a 401(k) plan fell 20.5% in 2022, which can undoubtedly create stress and anxiety for those who are relying on these funds for their retirement.1 It is also interesting to note that the performance of the S&P 500 index in 2022 was only slightly better than the average performance of 401(k) accounts.1 This highlights that market fluctuations can have a significant impact on retirement savings and underscores the importance of diversification and risk management strategies when it comes to investing for retirement.

According to the Department of Labor, only 51% of the workforce contributed to an employer-sponsored 401(k) in 2021.2 Of those participants, small mistakes could be made over time, contributing to a possible reduction of retirement wealth by as much as one-fifth over a 35-year work life3. This reduction could have significant impact on those planning for the future and their American Dream.

Unfortunately, not all Americans have access to a 401(k) plan, particularly those who work for small businesses or are self-employed. This means that many hardworking Americans are missing out on the opportunity to build a secure retirement and achieve their dreams. This highlights the importance of ensuring that all workers have access to retirement savings options, regardless of the size of their employer. With Matson Money’s continued commitment to the Fiduciary Standard and saving families from speculating and gambling with their money, we are giving more people access to their American Dream with training and education for their financial future.

Retirement Readiness

Retirement readiness is a critical consideration when it comes to investing. As we age, our financial needs and priorities change, and it’s essential to have a solid plan in place to ensure that we are prepared for retirement. Here are some key factors to consider when it comes to investing for retirement readiness:

1. Start early and stay consistent: The earlier you start investing for retirement, the more time your money has to grow. Consistency is also key – regularly contributing to your retirement accounts can help you build a solid foundation for your retirement savings.

2. Determine your risk tolerance: It’s important to understand your risk tolerance when investing for retirement. A higher risk tolerance may allow you to invest more aggressively for potentially higher returns, while a lower risk tolerance may lead you to invest more conservatively.

3. Diversify your investments: Diversification is a strategy that can help mitigate risk and maximize returns. Spreading your investments across different asset classes can help protect your portfolio from market fluctuations.

4. Seek professional guidance: Investing for retirement can be complex, and it’s important to seek professional guidance to help ensure that you are making informed decisions. Working with a financial coach can help you develop a customized retirement investment plan and stay on track towards achieving your retirement goals.

In conclusion, investing for retirement readiness is a critical consideration for everyone. Starting early, staying consistent, diversifying, and seeking professional guidance can help you build a solid foundation for your retirement savings and ensure that you are prepared for your golden years. It’s time to take a stand for you and your family to own and operate from academic investing principles; gaining access to recapturing, reclaiming, and realizing your American Dream. As an investor, engage in on-going education by attending investing seminars like Matson Money’s 2-day educational event, the American Dream Experience, where you and your family can learn about the science of investing and have an open conversation about what often goes undiscussed for families: their financial future.


1. Here’s how much Americans’ 401(k) plans fell last year.

2. Why 17% of employees don’t participate in 401(k) plans.,having%20access%20to%20a%20plan

3. 7 Demographic Disparities Impacting Retirement Readiness.



This content is based on the views of Matson Money, Inc.  This content is not to be considered investment advice and is not to be relied upon as the basis for entering into any transaction or advisory relationship or making any investment decision.  

This content includes the opinions, beliefs, or viewpoints of Matson Money.  All of Matson Money’s advisory services are marketed almost exclusively by either Solicitors or Co-Advisors.  Both Co-Advisors and Solicitors are independent contractors, not employees or agents of Matson.  

Other financial organizations may analyze investments and take a different approach to investing than that of Matson Money. All investing involves risks and costs. No investment strategy (including asset allocation and diversification strategies) can ensure peace of mind, guarantee profit, or protect against loss.