401(k)

In addition to helping employees save for retirement, a solid 401(k) plan can help companies to attract, motivate and retain good workers, enhance a company's corporate reputation and contribute to the long-term financial success of the business, according to a new study by Charles Schwab.

Expanding beyond its customer base of small and micro defined benefit and defined contribution retirement plans that invest in separately managed accounts, Zacks Investment Management is now offering the same service to mid-size plans, also using the FOLIOfn platform.

Analyzing the savings patterns of 11.5 million participants in the 16,723 defined contribution plans it serves, Fidelity found that Americans are holding steady when it comes to balancing their concerns over the economy and the declining market, and saving for their retirement.

Despite efforts by financial services firms to better reach and serve Hispanics and African-Americans, only 32% of Hispanics and 54% of African-Americans are invested in an IRA or 401(k) plan, whereas 72% of “general market” consumers are, according to research by Synovate.

The Securities and Exchange Commission could mandate the use of eXtensible Business Reporting Language (XBRL) in mutual fund risk return summaries by as early as the first quarter of next year, according to industry experts, putting many fund companies on the data-tagging fast track.

The days of 401(k) plans being managed by human resources executives inexperienced in orchestrating investment decisions may soon be over. Ninety-four percent of senior executives at 125 companies surveyed by Cowden Associates said they are involved in selecting and monitoring fund companies, administrators and options in their company’s 401(k) plan, and scrutinizing fees. That’s up significantly from only 30% in 2007.

MassMutual’s retirement services division is offering a customized 401(k) tool for plan sponsors and retirement plan advisers, based on asset allocation tools from Morningstar.

The United Services Automobile Association (USAA) has created five new target retirement funds to simplify investing for retirement and to provide investors greater value by offering lower costs that are 47% below the latest similar Lipper category expense ratio average.

U.S. Rep. George Miller of California is probably the best friend 401(k) investors have on Capitol Hill.

Securities and Exchange Commission Chairman Christopher Cox and US Secretary of Labor Elaine L Choa have signed a Memorandum of Understanding (MOU) to formalize and strengthen the cooperation and relationship between their two agencies. The purpose of the MOU is to share information, related to investments and retirement, to help protect Americans’ $5.8 trillion in retirement assets.

Fund management firm Philam Asset Management Inc. (PAMI), a division of American International Group, is now offering investors a Personal Investment Program (PIP), aimed at offering investors an affordable savings plan for their future.

TIAA-CREF’s ads for its Individual Retirement Accounts inferred that government and military employees who contributed to their Thrift Savings Plan were up against a time clock because the TSPs “retire.” Fidelity’s ads simply call the TSP “old.” TIAA-CREF has pulled its ads, but Fidelity, claiming all of its communications go through legal review, is still running them.

Despite difficult market conditions, Americans continued to save more for retirement last year, according to the Investment Company Institute.

The Department of Labor on Tuesday proposed requiring 401(k) plan fiduciaries to supply investors with standard account summaries that will clearly state fees, expenses and any administrative costs such as legal, accounting and recordkeeping charges-in actual dollars. Plans will also have to provide performance figures and comparable benchmark returns, information on investment options and how to obtain more detailed information, including education and/or advice.

BOSTON - Excessive fees in some 401(k) plans are hurting the reputation of all 401(k) plans and shaking investor confidence in what most financial experts agree is a great way for the majority of Americans to save for retirement.

BOSTON - Workers love pension plans, but providing 20 to 30 years of benefits to a huge retired workforce can cripple most companies' profits.

It's bad enough that 40% of workers in their 20s and 30s cash out their 401(k)s when they switch jobs, even though taxes and penalties decimate the balances to almost half, according to a CMI survey of 1,200 people in January commissioned by Fidelity.

Investors alleging wrongdoing by their stockbrokers can choose to go to court or face an arbitration panel of three people, including one person from the brokerage industry and two from the public.

Despite difficult market conditions, Americans continued to save more for retirement last year, according to the Investment Company Institute.

In his last public appearance as a member of the Securities and Exchange Commission, Commissioner Paul Atkins said that, with regards to shareholder rights, the agency “would be wise to continue to respect the principles of federalism and avoid the temptation to exceed the limitations on its authority delegated by the Congress.”