It’s Time to Abolish 401(k) Plans

There is a solution to offering a 401(k) plan designed by the Wall Street bullies. The Wall Street bullies only concern is how to increase the revenues received from the mutual funds in your 401(k) plan. They pride actively managed mutual funds knowing that the top performers will not repeat. They tyhen replace the poor performers in your plan with the new top performers. And the cycle repeats over and over again. Now is the time to stop this cycle of destruction for your plan participants and yourself.
The Wall Street bullies want you to continue to trade because they make money on every trade whether you do or not.

English: Wall Street sign on Wall Street
English: Wall Street sign on Wall Street (Photo credit: Wikipedia)

I know it sounds radical, but I believe it’s time to abolish 401(k) plans. Why? Because they are not working for those they are intended to benefit: employees saving for retirement.

They are working great for brokers, advisors, recordkeepers and others who “serve” these plans. By some estimates, over their lifetime, the average household will pay a shocking $155,000 in fees to have their money “managed” in these plans.

According to the Employee Benefit Research Institute, at the end of 2011, approximately $4.5 trillion was invested in 401(k) plans. That’s enough money to bring out the best sharks Wall Street can muster.

What are employees receiving for these huge fees? Lousy investment choices. Little or no investment advice and terrible returns.

Plan sponsors need to realize that the 401(k) plan they offer is their employees only vehicle for retirement savings. By trusting your broker or agent without an independent analysis is both dangerous and foolish.

Please comment or call to discuss how this affects you and your company sponsored retirement plan.

Posted via email from Curated 401k Plan Content

  • Gap Between Employer and Employee Views on Retirement Preparedness Through 401(k) Plans – MarketWatch(

  • Why Low Employee Fees Are So Important to the Success of Your 401(k)(

  • Choosing The Right 401k Retirement Plan(

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