If you don't participate in a 401(k) plan at work because one isn't offered, why should you read this column? I'll admit I have a prejudiced view. I believe you can help others in your circle of friends and family who may not realize why they should participate.

Let's go through a few basic points together.

For some motivation, consider this: 401(k)s help create millionaires.

Fidelity Investments reported 537,000 401(k) participants with more than $1 million 401(k) accounts at the end of 2024 (Fidelity's 2024 fourth-quarter retirement analysis -- tinyurl.com/mcdfx33k). Overall, there were 24.5 million 401(k) participants in the study.

More motivation: Not saving enough is a common concern.

A 2024 Global Retirement Survey of 724 retirement plan participants by MFS Investment Management, a U.S.-based global investment manager, found that 59% were very or extremely concerned about saving enough money for retirement (tinyurl.com/yc4jb8x6).

And the challenges are real. When asked what, if any, competing financial priorities prevent them from adequately saving for retirement, 31% of the respondents said saving for an emergency, 28% indicated they live paycheck to paycheck and cannot save for retirement, and 19% said they are setting money aside for child education.

401(k)s offer the answer.

There is no better way to save for retirement, especially if the plan offers an employer match. A match compresses the time it takes to double an investment. If it takes roughly 10 years to double an investment with an annual return of 7.2% (rule of 72), what if you could double your investment overnight? Wouldn't that appeal to you?

That's what a 401(k) with a dollar-for-dollar match gives you -- double your investment without the need to wait 10 years. Most 401(k)s do have matches. The dollar amount varies.

Good enough. But what if someone "can't afford" to participate?

Even though a payroll contribution is usually necessary to participate in a 401(k), that does not mean that the dollar amount of your paycheck will necessarily drop.

In your circle of friends, do you know anyone who receives tax refunds? If they don't participate in the 401(k) because they "can't afford to," tell them get some advice on tax management. IRS Form W-4 is the key.

If someone is getting a refund, they are lending money to the federal government. Why do that if you can use that money to pay for your 401(k) contribution? (If you would like more information on how to do that, I'll send you some columns I've written on the subject. Write to readers@juliejason.com.)

Another motivating factor: People need a vehicle to create retirement security for themselves.

When asked in the MFS survey, 48% somewhat or strongly agreed that they could financially support themselves during a 30-year retirement. Also surveyed by MFS were 310 retirees, most of whom (76%) said they somewhat or strongly agreed they could financially support themselves over a 30-year retirement period.

To use a 401(k) effectively, you will want to do some homework to make sure your financial decisions are sound. While 42% in the survey cited a financial adviser or planner as a resource, 39% indicated they used a plan provider, and 35% cited their employer.

Interestingly, 30% indicated a family member as a resource, and 18% named a friend, peer or co-worker. The latter group provides the basis for the 401(k) Champion Award, which honors those who not only use their 401(k)s wisely to save for retirement but also encourage those around them to do the same. Full disclosure: In my role as an advocate of financial literacy education, I founded and sponsor the award (401kchampion.com), as well as National 401(k) Champion Day, which will be celebrated for the first time on June 15 (tinyurl.com/58e78zjy).

Company retirement plans such as 401(k)s need your attention, even if you aren't working for a company that offers them. Why? It's simple. People you know, your circle of friends and family, are likely participants or eligible to be participants. And you want them to participate -- for their own financial futures.

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Do you have a favorite cause or a favorite charity you support, either through volunteering or donating funds? Or, perhaps you have a vision for more than you see being done, a vision for more than the work that you see charities taking on?

My personal cause is financial literacy education, which I support through donations to educational institutions and through my writing and lecturing. But, because of my business running an investment counsel practice for high-net-worth clients, I notice a gap that I don't see being addressed, and I'm itching to solve that problem.

My vision is to transform 401(k) education for those who believe they cannot afford to contribute. I want to see everyone, no matter their financial circumstances, retire securely. And, I'm exploring the idea of setting up a nonprofit to do just that.

I'm guessing that a few of you may have the same urge to fill a perceived gap in your own way. And if that's you, I know there are hundreds of thousands more of you. According to the National Center for Charitable Statistics (NCCS), there are more than 1.85 million nonprofits, based on 2024 data (tinyurl.com/4mwu83yz).

However, anyone who is considering setting up a nonprofit has to be ready to approach the exercise as if he were setting up a business, with a well-thought-out "business plan," starting with a clear mission and an answer to the "why" questions. Why do we need a new nonprofit? Why is the mission desirable? Why will the vision encourage people to join the effort? Why should this cause succeed? Why do other nonprofits with similar missions fail?

Add to that list questions suggested by Greg McRay, founder and CEO of The Foundation Group: "Who is the target or beneficiary group that my organization will impact?" and "How will I accomplish my mission?" The Foundation Group provides startup, compliance and consulting services to nonprofit 501(c)(3) organizations. "Why?" is not enough. In "11 Must-Dos for Starting a Nonprofit" (tinyurl.com/yc4b8mad), McRay writes that you also need to address who, what, where, when and how.

Once you've identified the mission, the work begins. Among the 12 steps Sharon Cody, JD, lists in the Kindful article "How to Start a Nonprofit: Complete 12-Step Guide for Success" (tinyurl.com/5xc73ssn) are:

-- Research federal and state legal requirements for nonprofit registration

-- Incorporate your nonprofit

-- Create your bylaws (a necessary step for a 501(c)(3) application to the IRS)

-- Develop a conflict-of-interest policy

-- Apply for federal tax-exempt status and state tax exemptions

Cody adds that you will want to seek out local expertise (an attorney, accountant or someone else familiar with how charitable organizations work) to make sure you comply with all the laws related to a nonprofit organization.

One resource provided by the National Council of Nonprofits is a list of state nonprofit associations (tinyurl.com/yc4rywdw). For example, in my home state of Connecticut, there is the CT Community Nonprofit Alliance (tinyurl.com/yru6nx2s). Another resource is Legal Zoom's "How to Start a Nonprofit" (tinyurl.com/32t5d3zf).

Once you decide to go ahead, be aware that it will take some time before you are recognized as a nonprofit. The IRS provides details on getting federal tax-exempt status, including processing times for the various forms of nonprofits, on its website (tinyurl.com/bevwyfpu).

Beyond the tax-exempt approval, there are other issues, as highlighted by the National Council of Nonprofits article "How to Start a Nonprofit" (tinyurl.com/y8yena7m): "Will you need office space or a facility? What will the program costs be, including labor (which may include payroll taxes and benefits)? In some cases, special licenses, permits, or certifications will be necessary to provide certain services."

It's obvious that creating a nonprofit is a big decision, not to be thought of lightly. There are other avenues to pursuing your vision. For one, as suggested by the National Council of Nonprofits: "If there is an organization in your community that you admire, consider approaching that organization to explore establishing a new or expanded program to reach the people you are hoping to serve."

In the end, what's important is delivering on the promised eleemosynary outcome that drives your vision.

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When it comes to retirement, there may be many plans for your future: traveling, spending more time with family, and pursuing new hobbies or devoting more time to current ones.

What might not be in your plans, but does deserve consideration, is the possibility of cognitive impairment -- including dementia. There are no guarantees one way or another, of course, when it comes to health.

According to the Alzheimer's Association: "An estimated 7.2 million Americans age 65 and older are living with Alzheimer's dementia in 2025," adding that "74 percent are age 75 or older." You can see the 2025 Alzheimer's Disease Facts and Figures report at tinyurl.com/mvkt4t9s.

There are two forms of preparation that should be considered: medical and financial. And the time to prepare is when you are in good health.

If you or a family member is having memory issues, you first need to see your primary care physician, according to Jason Karlawish, M.D., professor of medicine at the University of Pennsylvania and author of "The Problem of Alzheimer's." The physician, in turn, can decide whether a referral to a specialist is needed, and will likely need to talk to the spouse and other family members or friends who have seen changes over time.

"Patients with memory disorders are often poor historians; thus, having other sources of history is critical," according to Matthew McConnell, M.D, a board-certified neurologist and epileptologist with the Neurology and Headache Center of Greenwich, Connecticut. "When focusing on memory symptoms, it is important to establish what the patient and family mean by 'memory,' what kinds of information is the patient forgetting, and over what period of time."

Observation is key.

"Functionality with daily activities can differentiate between mild cognitive impairment and dementia, and an assessment of the time course over which the patient lost independence with activities of daily living provides insights about progression," McConnell adds.

Guidelines can be helpful. The Alzheimer's Association provides a list of "10 Early Signs and Symptoms of Alzheimer's and Dementia" as well as a chart comparing signs of Alzheimer's and dementia with typical age-related changes (tinyurl.com/3rzvmkws). Among the early signs are challenges in planning or solving problems, difficulty in completing familiar tasks, decreased or poor judgment and changes in mood and personality.

From a financial point of view, dementia could require constant care for many years. The Alzheimer's Association points out that the "total lifetime cost of care for someone with dementia is estimated at $405,262 in 2024 dollars." Seventy percent of that cost is "borne by family caregivers in the forms of unpaid caregiving and out-of-pocket expenses."

How will those costs be paid if you have to fund care? Timing will be an issue, as fewer options exist after the discovery of dementia. Long-term care insurance likely will not be an option, leaving only self-funding, unless you qualify for Medicaid.

The AARP's "Long-Term Care Worksheet" can be helpful in considering costs -- see tinyurl.com/4sasxj2y.

A discussion of finances also leads to incapacity planning and estate planning conversations. Family members will need to be involved at some point -- the earlier the better -- not only to discuss the person affected, but also to discuss how family members' lives might change.

Guides are available. For example, the Conversation Project, which encourages people to talk about their wishes for care through the end of life, offers a guide for caregivers of people who have Alzheimer's or another form of dementia (tinyurl.com/3j735avz).

Probably the most important point to remember is this: Dementia is not a solo affair. It's a family affair.

On a related note, if you are involved in fundraising for nonprofits focused on dementia, you may want to attend a presentation I'm giving in Greenwich on Tuesday, May 27. Please email me for more information at readers@juliejason.com.

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