2011Oct17 Who is watching your 401k?
If you would be wealthy, think of saving as well as getting. 401(k):
In a recent article in Financial Planning magazine a very interesting bit of research was highlighted. Investors who relied on professional help in the form of target-date funds, managed accounts and advice earned nearly three percentage points more than those that did not, according to an analysis of eight large defined contribution plans between 2006 and 2010 by Aon Hewitt and Financial Engines. The plans covered 400,000 participants with $25 billion in assets.
The study found that in those five years, workers who received some form of professional advice experienced higher returns averaging 2.92 percentage points, net of fees, than those individuals who managed their 401(k) on their own.
"Exacerbated by continued market volatility, workers not using help are clearly making significant investment mistakes," said Christopher Jones, chief investment officer at Financial Engines Jones . "Their inefficient portfolios and skewed risk-taking is hurting results-and as the numbers show, the cost is very high."
We track over 30 401(k) plans on our web site. They are updated each quarter and the available funds are ranked by relative strength. If you would like your companies plan listed, send us a list of the available choices. If there have been any fund changes in any of the plans on our site please let us know what they are and we will make the adjustment. Economy: We mentioned on our radio show on Saturday morning that retail sales had increased across the board. Here is a look at what people are spending on.
Greece:
If anyone has any questions about why Greece has become such an intractable problem for the EU, take a look at the following strike schedule. The fact that there is a strike schedule should tell you all you need to know;
MONDAY State media are to continue strike action until Thursday. The Panhellenic Seafarers Association's strike until Tuesday will affect all ferry services. Lawyers are continuing to strike until Wednesday. Customs employees walk off the job for 24 hours. Tax office, Social Security Foundation (IKA) and local authority employees continue rolling 48-hour strikes.
TUESDAY Railway workers start a three-day strike, until Thursday, affecting the Proastiakos suburban rail and the metro service to Athens Airport. Journalists hold a 24-hour strike. Port workers start a 48-hour strike.
WEDNESDAY The country's main labor unions, GSEE and ADEDY, begin a 48-hour strike. There will be no flights or taxis. Retail stores and banks will remain closed too.
THURSDAY No flights or taxis, with public transport also likely to be disrupted as industrial action by GSEE and ADEDY continues.
This does not leave much time for getting anything productive done.
Greece is bankrupt. European leaders are simply buying time to reduce the impact of Greek default on major banks. Last week's market rally of hope met reality Monday morning. Expect more of the same. |
