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Tesla layoffs: Elon Musk says job cuts required to fuel profits

June 18th, 2018 | Leave a comment.

DETROIT – Electric car maker Tesla is laying off about 3,600 white-collar workers as it slashes costs in an effort to become profitable.

CEO Elon Musk said in an e-mail to workers that the cuts amount to about 9 percent of the company’s workforce of 40,000.

Source – CBS News

Tesla Motors, Inc. 401k Plan is a defined contribution plan with a profit-sharing component and 401k feature. This plan has a BrightScope Rating of 65.

For the average 401k participant, the 23 point difference between this plan’s BrightScope Rating (65) and the top rated plan (88) could equate to:  13 years of additional work and/or $113, 174 in lost savings.
The plans administrator is Eryn Bergquist and is handled in Palo Alto, CA.  The recordkeeper is Fidelity.

One of the key concerns is that the plan only has 28 investment options which is common for most 401k type plans.

Most 401k, Profit Sharing or ESOP plans do not have active management so there really is no one guiding the plan investments. What this means is that like most traditional investment companies, in the event of an economic downturn there is no method for automatically moving your portfolio to a lower risk profile.

With the WealthSentry system we participate in, accounts are automatically re-balanced to lower risk portfolios in the event of a severe economic downturn. Learn more in our guide, 6 Critical Steps You Must Take Now.

For an in-depth analysis of your options feel free to make an appointment, read one of our guides or participate in one of our workshops.

Wishing you the best.

Doug Reed, CRPC, AAMS

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