Tips to Keep Your 401(k) Plan on Track - 5/19/2009 - insurancenewsnet.com: "Main article
401(k) plans took a beating in 2008, and 2009 is proving that the bad times aren't over yet. Looking forward, there are several issues plan sponsors need to address in reviewing their plans, from the plan's governance to the choices of a low-risk investment option.
'Plan sponsors face many challenges in developing a well-structured DC plan to help meet the retirement requirements of their participants, while minimizing the fiduciary risk of managing the plan and its investment lineup,' said Barbara Marder, global leader of Mercer's defined contribution consulting business. 'The significant decline in the capital markets has ramifications for recordkeepers, trustees, and investment managers.'
10 Issues to Investigate
To keep their plans on sound footing, Mercer suggests that plan sponsors investigate 10 key issues:"
Tuesday, May 19, 2009
Monday, May 18, 2009
The SPARK Institute Defends 401(k) Plans, Recommends Changes to Increase Coverage and Participation
The SPARK Institute Defends 401(k) Plans, Recommends Changes to Increase Coverage and Participation: "The SPARK Institute today issued a white paper, 'The Case for Employer-Sponsored Retirement Plans - Coverage, Participation and Retirement Security,' that defends 401(k) and similar workplace retirement plans that have been criticized recently based on misunderstandings and misconceptions. '401(k) plans are the best vehicles for saving for retirement, however, improvements can be made and our paper makes a number of recommendations,' said Larry Goldbrum, General Counsel of The SPARK Institute. The white paper is available at www.sparkinstitute.org/comments-and-materials.php."
Friday, May 15, 2009
401k - IRA Rollover - IRA Rollover Rules, Forms, and Solutions
401k - IRA Rollover - IRA Rollover Rules, Forms, and Solutions: "www.cakefinancial.com So you’re interested in an overview of 401(k) plans. A 401(k) plan is a special type of investment account, offered by employers and designed to help you save for retirement. You contribute money to your 401(k) plan through pre-tax payroll deductions. In other words, the money comes straight from your paycheck. Once the money is in the 401(k) plan, you can then allocate it to different investments, depending on your plan. Usually, you can choose from a number of …"
Thursday, May 14, 2009
Commentary: Social Security healthier than your 401(k) - CNN.com
We are almost at the top of the roller coaster. Hold on tight because the drop is coming soon. So they are saying 401(k) is no longer the way to go. Hmmmmm....
Commentary: Social Security healthier than your 401(k) - CNN.com: "The 2009 Social Security Trustees report released Tuesday provides a basis for assessing how each held up. On the one hand, assets in 401(k) accounts -- which are predominantly in stocks -- have declined in value by about a third, employers are suspending matching contributions, and millions of unemployed workers have seen their retirement savings efforts disrupted.
On the other hand, the Social Security Administration continues to send out monthly checks to 35 million retirees and their spouses, 9 million disabled workers and their families, and 6 million families whose breadwinner has died. In other words, the government system has proved to be much less fragile than the private system of retirement savings."
Commentary: Social Security healthier than your 401(k) - CNN.com: "The 2009 Social Security Trustees report released Tuesday provides a basis for assessing how each held up. On the one hand, assets in 401(k) accounts -- which are predominantly in stocks -- have declined in value by about a third, employers are suspending matching contributions, and millions of unemployed workers have seen their retirement savings efforts disrupted.
On the other hand, the Social Security Administration continues to send out monthly checks to 35 million retirees and their spouses, 9 million disabled workers and their families, and 6 million families whose breadwinner has died. In other words, the government system has proved to be much less fragile than the private system of retirement savings."
So Now They Tell Me -- or Whatever Happened to My 401(k)? | The Jewish Exponent
So Now They Tell Me -- or Whatever Happened to My 401(k)? | The Jewish Exponent: "Recent stock-market declines have affected virtually every sector of the economy, but the impact on retirement accounts has been the most worrisome for many people.
Retirement accounts have lost about $2 trillion over the past two years due to market declines, according to Congressional Budget Office estimates.
But don't despair!"
Retirement accounts have lost about $2 trillion over the past two years due to market declines, according to Congressional Budget Office estimates.
But don't despair!"
Wednesday, May 13, 2009
Demand For Green, Social 401(k) Plans Grows - WSJ.com
Demand For Green, Social 401(k) Plans Grows - WSJ.com: "More workers are trying to align their values and their retirement savings by opting for socially responsible investments in their 401(k) plans.
Many of those initially in SRI were in academia or nonprofit sectors who wanted their investments to have a positive social impact. Today, younger workers and mainstream investors are demanding them as options in their retirement accounts - especially so-called green funds.
'I think a lot has to do with a shift in the perception of investing,' says Joe Keefe, chief executive of PAX World Mutual Funds, saw the number of companies utilizing Pax World Funds through one of the major platforms jump in the last year to 44 from 15.
Investors were turned off by bloated CEO salaries and other questionable business practices that made headlines in the financial crisis. Keefe says they 'see sustainability and good governance as better for their portfolios.'"
Many of those initially in SRI were in academia or nonprofit sectors who wanted their investments to have a positive social impact. Today, younger workers and mainstream investors are demanding them as options in their retirement accounts - especially so-called green funds.
'I think a lot has to do with a shift in the perception of investing,' says Joe Keefe, chief executive of PAX World Mutual Funds, saw the number of companies utilizing Pax World Funds through one of the major platforms jump in the last year to 44 from 15.
Investors were turned off by bloated CEO salaries and other questionable business practices that made headlines in the financial crisis. Keefe says they 'see sustainability and good governance as better for their portfolios.'"
PersonalFinance: A plan for your 401(k) | Special Coverage | Reuters
PersonalFinance: A plan for your 401(k) | Special Coverage | Reuters: "WASHINGTON (Reuters) - There's a lot about 401(k) accounts in the news lately, and much of it is unsettling.
There are reports of workers finding their 401(k) contributions locked into investments they can't sell, and of hidden fees skimming value off the top of retirement funds. Big-name employers are doing away with matching contributions, so the only money going into employees' accounts comes out of their own paychecks. Finally, too many employees had no choice but to watch their hard-earned retirement savings evaporate in the great market meltdown of 2008/9.
What's an employee to do? Stop saving at work? Some in the 401(k) industry are a little bit smug about this. They point out that even if your plan isn't very good, and even if your employer has stopped matching your contributions, you can't beat the tax advantages of putting money into an employer-sponsored tax-deferred retirement plan.
That's not exactly true. You may have other tax-favored options."
There are reports of workers finding their 401(k) contributions locked into investments they can't sell, and of hidden fees skimming value off the top of retirement funds. Big-name employers are doing away with matching contributions, so the only money going into employees' accounts comes out of their own paychecks. Finally, too many employees had no choice but to watch their hard-earned retirement savings evaporate in the great market meltdown of 2008/9.
What's an employee to do? Stop saving at work? Some in the 401(k) industry are a little bit smug about this. They point out that even if your plan isn't very good, and even if your employer has stopped matching your contributions, you can't beat the tax advantages of putting money into an employer-sponsored tax-deferred retirement plan.
That's not exactly true. You may have other tax-favored options."
Tuesday, May 12, 2009
Article - WSJ.com
Article - WSJ.com: "Demand For Green, Social 401(K) Plans Growing,' published at 10:49 a.m. EDT, misstated in the third paragraph that PAX World Mutual Funds has seen the number of major investment platforms carrying its funds jump this year to 44 from 15 in 2008. Rather, the number of companies utilizing Pax World Funds through one of the major platforms jumped in the last year to 44 from 15. The correct version follows.)
NEW YORK (Dow Jones)--More workers are trying to align their values and their retirement savings by opting for socially responsible investments in their 401(k) plans."
NEW YORK (Dow Jones)--More workers are trying to align their values and their retirement savings by opting for socially responsible investments in their 401(k) plans."
Monday, May 11, 2009
401(k) auto enrollment not in Obama budget - Pensions & Investments
401(k) auto enrollment not in Obama budget - Pensions & Investments: "A proposal that would require automatic enrollment of participants in existing 401(k) plans was not included in President Barack Obama’s fiscal 2010 budget, said Ed Ferrigno, vice president, Profit Sharing/401(k) Council of America.
As recently as May 7, Thomas E. Gavin, spokesman for the White House’s Office of Management and Budget, had insisted that the proposal would be included in the detailed analysis of the budget that OMB released today."
As recently as May 7, Thomas E. Gavin, spokesman for the White House’s Office of Management and Budget, had insisted that the proposal would be included in the detailed analysis of the budget that OMB released today."
Friday, May 8, 2009
Will Obama Seize Americans’ 401k and IRA Funds?
Will Obama Seize Americans’ 401k and IRA Funds?: "There is a rumor floating around that Obama will seize Americans’ retirement funds, like Argentina and some other countries have done.
Two investment newsletters - Green Chip Review and The Mining Speculator - have recently claimed that the 401k seizure is a sure thing.
Is this just crazy talk, or is there something to it?
And in October of 2008, the idea of confiscating private 401k and IRA accounts and replacing them with government accounts gained wide traction. See this, this, this, and this.
But are those plans still in the works, or has the idea been abandoned?"
Two investment newsletters - Green Chip Review and The Mining Speculator - have recently claimed that the 401k seizure is a sure thing.
Is this just crazy talk, or is there something to it?
And in October of 2008, the idea of confiscating private 401k and IRA accounts and replacing them with government accounts gained wide traction. See this, this, this, and this.
But are those plans still in the works, or has the idea been abandoned?"
Wednesday, May 6, 2009
Changes Coming for the 401(k) Plan - WSJ.com
Changes Coming for the 401(k) Plan - WSJ.com: "Policy makers and some industry representatives say major changes to retirement investing and 401(k) plans are becoming increasingly likely under the Democratic Party's control of Congress.
Proposed legislation gaining momentum in the House and Senate would require the industry to break out 401(k) fees on investors' statements, and would essentially repeal Bush administration regulations allowing mutual-fund companies to offer personalized advice to 401(k) participants in the plans the companies manage.
In another proposed change, President Obama's 2010 budget calls for the future establishment of a program in which all workers would be automatically enrolled in employers' retirement plans. Now, in most cases, they must opt in to participate. Also under the administration's plan, employers that don't offer a retirement plan would be required to enroll their employees in a direct-deposit individual retirement account. Employees would be able to opt out of either approach."
Proposed legislation gaining momentum in the House and Senate would require the industry to break out 401(k) fees on investors' statements, and would essentially repeal Bush administration regulations allowing mutual-fund companies to offer personalized advice to 401(k) participants in the plans the companies manage.
In another proposed change, President Obama's 2010 budget calls for the future establishment of a program in which all workers would be automatically enrolled in employers' retirement plans. Now, in most cases, they must opt in to participate. Also under the administration's plan, employers that don't offer a retirement plan would be required to enroll their employees in a direct-deposit individual retirement account. Employees would be able to opt out of either approach."
Tuesday, May 5, 2009
LewRockwell.com Blog: More 401k Concerns
LewRockwell.com Blog: More 401k Concerns: "Some investors in 401(k) retirement funds who are moving to grab their money are finding they can't.
Even with recent gains in stocks such as Monday's, the months of market turmoil have delivered a blow to some 401(k) participants: freezing their investments in certain plans. In some cases, individual investors can't withdraw money from certain retirement-plan options. In other cases, employers are having trouble getting rid of risky investments in 401(k) plans."
Even with recent gains in stocks such as Monday's, the months of market turmoil have delivered a blow to some 401(k) participants: freezing their investments in certain plans. In some cases, individual investors can't withdraw money from certain retirement-plan options. In other cases, employers are having trouble getting rid of risky investments in 401(k) plans."
Does America need a new retirement system? - Personal finance- msnbc.com
Does America need a new retirement system? - Personal finance- msnbc.com: "Should we be rethinking our retirement savings system?
“It’s time to have a campaign like we’ve had in health care in this country,” says Karen Friedman, policy director of the consumer advocacy group the Pension Rights Center, “We need to recognize a basic American ideal that everybody should be able to retire and make ends meet.”
Here are some ideas circulating from those who hope to strengthen — or completely rebuild — the way we approach retirement:"
“It’s time to have a campaign like we’ve had in health care in this country,” says Karen Friedman, policy director of the consumer advocacy group the Pension Rights Center, “We need to recognize a basic American ideal that everybody should be able to retire and make ends meet.”
Here are some ideas circulating from those who hope to strengthen — or completely rebuild — the way we approach retirement:"
How ETFs Can Fix the 401(k) Industry-05/04/2009
How ETFs Can Fix the 401(k) Industry-05/04/2009: "The defined contribution retirement plan as we know it could soon be going the way of the dinosaur. This leaves a gaping hole open for exchange traded funds (ETFs) to seize the opportunity and help out the future of America’s workers.
Not only have many workers suffered major losses within their 401(k) plans, many employers have ceased to contribute to their employees plans, giving the future of working America a desperate outlook. David P. Loeper for Investment News reports that even many target date mutual funds, designed to protect participants’ plan balances as they approach retirement, have lost more than 30% of their value.
In Congress, various plans are starting to go in motion. Ideas range from nationalization to complete fee disclosure to try and fix this broken system."
Not only have many workers suffered major losses within their 401(k) plans, many employers have ceased to contribute to their employees plans, giving the future of working America a desperate outlook. David P. Loeper for Investment News reports that even many target date mutual funds, designed to protect participants’ plan balances as they approach retirement, have lost more than 30% of their value.
In Congress, various plans are starting to go in motion. Ideas range from nationalization to complete fee disclosure to try and fix this broken system."
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