Dan Solin warns us of the huge problems involving 401K plans:

Here is the harsh reality: 401(k) plans are a false crutch for employees. They simply don't work, if you define "work" as providing funds that will permit retirement with dignity -- if at all. According to Fidelity Investments, average balances in 401(k) plans as of March 31, 2011 were $74,900. Those 55 and older had saved $233,800 on average. Given increased life expectancy, it is understandable that another study found that 61 percent of those surveyed said they were more scared of outliving their assets than they were of dying.

I have just finished reading Solin's new book, The Smartest Portfolio You'll Ever Own: A Do-It-Yourself Breakthrough Strategy. Lots of intriguing numbers that run counter to much of the hype you hear from "financial advisers" on TV. Most important part of his book is the Solin gives you the recipe for assembling your own portfolio based on passively managed funds with low fees. He is one of the relatively few well-known financial advisers who steers you wide of brokers who claim that they can pick stocks. Solin essentially calls these people frauds, based upon decades of numbers.