Miss_Piggy
12-28-2007, 09:51 PM
I wanted to submit these following links for those interested as background information for us as Federal Employees to understand for comparison purposes what our TSP Board is, and is not, providing us in relation to National 401k Trends, Features, Rules and Regulations.
http://articles.moneycentral.msn.com/RetirementandWills/InvestForRetirement/7Hot401kTrends.aspx
Excerpts:
Many of the companies automating enrollment are putting their new hires into extremely conservative investment options, typically money markets and stable value funds. That's no way to earn the kinds of returns needed to beat inflation over time.
Although employers aren't necessarily disassembling their complicated plans, the average number of available options has leveled off at 14
Some of the target funds get a little too conservative at the end.
If your employer doesn't already have your 401(k) costs broken out on your statement, ask for that
Employers aren’t exactly falling over themselves to offer the new Roth 401(k)s, but that could change as workers begin to understand their value. Roth 401(k)s are a twist on the traditional 401(k) that allows workers to make after-tax contributions to their plans. Instead of getting a tax break on your contributions up front, you can get a potentially bigger one down the road: all the money withdrawn from a Roth 401(k) in retirement is tax-free. Some financial experts have opined that most workers, except those close to retirement, would be better off contributing to a Roth 401(k) than a traditional 401(k).http://www.blueoceanportfolios.com/401k/?gclid=CL_q5o7NypACFRuhFQodBTLrXA
Excerpts:
Social Security is a big question mark.
More than ever, the American worker’s hope for a comfortable retirement is squarely on the shoulders of the 401(k) Plan.
Employees are filing class-action lawsuits against employers who are not honoring their fiduciary responsibilities. Congressional hearings are looking into questionable practices in the 401(k) industry. And a steady stream of new rules and regulations are popping up faster than employers can keep track of.
A big part of the problem is the investment choices offered in most 401(k) plans.
Simple investment choices that encourage high participation rates. Employees only have to choose their risk tolerance - we do the rest!
http://www.infoplease.com/finance/commentary/feature/feature_010400.html
Excerpts:
Consequently, employers have been increasing the number of investment options offered. In 1995, 22.2% of companies offered five investment fund choices and 65% offered six or fewer investment choices. By 1998, 17% of companies offered between 11 and 15 funds, and 74% of companies offered six or more fund choices, according to the Profit Sharing/401(k) Council of America's (PSCA) 42nd Annual Survey of Profit Sharing and 401(k) Plans survey
"We see a continued increase in the number of funds offered," said Paul Yakoboski, senior research fellow at the Employee Benefit Research Institute (EBRI). "There's more diversity."
"Within the foreseeable future, there will be unlimited funds," said Trisha Brambley, president of Resources for Retirement Plans Inc., a retirement planning consulting firm.
Another investment option that's growing in popularity is lifestyle (or life-cycle) funds, said David Wray, PSCA president. These funds are targeted toward different age groups or different risk tolerance levels. They are ideally suited for people who don't have the interest or time to manage their retirement money, he added. About 20% of funds offered this option in 1998, the PSCA found. This one sounds interesting but is beyond my understanding. This one is for the Brainiacs!
http://www.etftrends.com/2007/10/etfs-in-401k-pl.html
This one has so many links to understanding the current state of 401k plans, it’s almost beyond absorption.
http://www.401khelpcenter.com/401k/topics_02-2007.html
http://articles.moneycentral.msn.com/RetirementandWills/InvestForRetirement/7Hot401kTrends.aspx
Excerpts:
Many of the companies automating enrollment are putting their new hires into extremely conservative investment options, typically money markets and stable value funds. That's no way to earn the kinds of returns needed to beat inflation over time.
Although employers aren't necessarily disassembling their complicated plans, the average number of available options has leveled off at 14
Some of the target funds get a little too conservative at the end.
If your employer doesn't already have your 401(k) costs broken out on your statement, ask for that
Employers aren’t exactly falling over themselves to offer the new Roth 401(k)s, but that could change as workers begin to understand their value. Roth 401(k)s are a twist on the traditional 401(k) that allows workers to make after-tax contributions to their plans. Instead of getting a tax break on your contributions up front, you can get a potentially bigger one down the road: all the money withdrawn from a Roth 401(k) in retirement is tax-free. Some financial experts have opined that most workers, except those close to retirement, would be better off contributing to a Roth 401(k) than a traditional 401(k).http://www.blueoceanportfolios.com/401k/?gclid=CL_q5o7NypACFRuhFQodBTLrXA
Excerpts:
Social Security is a big question mark.
More than ever, the American worker’s hope for a comfortable retirement is squarely on the shoulders of the 401(k) Plan.
Employees are filing class-action lawsuits against employers who are not honoring their fiduciary responsibilities. Congressional hearings are looking into questionable practices in the 401(k) industry. And a steady stream of new rules and regulations are popping up faster than employers can keep track of.
A big part of the problem is the investment choices offered in most 401(k) plans.
Simple investment choices that encourage high participation rates. Employees only have to choose their risk tolerance - we do the rest!
http://www.infoplease.com/finance/commentary/feature/feature_010400.html
Excerpts:
Consequently, employers have been increasing the number of investment options offered. In 1995, 22.2% of companies offered five investment fund choices and 65% offered six or fewer investment choices. By 1998, 17% of companies offered between 11 and 15 funds, and 74% of companies offered six or more fund choices, according to the Profit Sharing/401(k) Council of America's (PSCA) 42nd Annual Survey of Profit Sharing and 401(k) Plans survey
"We see a continued increase in the number of funds offered," said Paul Yakoboski, senior research fellow at the Employee Benefit Research Institute (EBRI). "There's more diversity."
"Within the foreseeable future, there will be unlimited funds," said Trisha Brambley, president of Resources for Retirement Plans Inc., a retirement planning consulting firm.
Another investment option that's growing in popularity is lifestyle (or life-cycle) funds, said David Wray, PSCA president. These funds are targeted toward different age groups or different risk tolerance levels. They are ideally suited for people who don't have the interest or time to manage their retirement money, he added. About 20% of funds offered this option in 1998, the PSCA found. This one sounds interesting but is beyond my understanding. This one is for the Brainiacs!
http://www.etftrends.com/2007/10/etfs-in-401k-pl.html
This one has so many links to understanding the current state of 401k plans, it’s almost beyond absorption.
http://www.401khelpcenter.com/401k/topics_02-2007.html