Why don’t most people know how much to save and how invest?

Most people don’t have the knowledge or tools to save and invest wisely, and don’t receive the necessary training in school or elsewhere. Some people learn the basics from their parents, but in many cases, their parents may not have significantly more knowledge than they do in these matters. This is a dilemma because many people are now part of what WealthStep calls “the first 401k generation”. Previously, if a company had any retirement plan at all (approximately only 1/3 of companies in the US offer a retirement plan to their employees), it was what was called a “Defined Benefit Plan” or traditional “Pension Plan” where did not make any saving or investment decisions. Now, with the rapid increase in the use of 401k plans, people are required to make their own saving and investing decisions. 401k providers that conduct education meetings can help fill that education gap, but may not sufficiently focus on helping people focus on what matters most in decision-making, and what pitfalls to avoid. WealthStep is designed to address those problems, by providing saving and investing advice, and education with a behavioral finance focus, to help people get on and stay on track.