Practice

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.

GAMCO Investors announced today its appointment of Jeffrey M. Farber as executive vice president of finance/corporate development and chief financial officer.

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.”

To show workers the long-term impact of cashing out their 401(k) savings when they change jobs or retire, a firm that provides rollover services for plan sponsors now offers a free “Cash-Out Calculator.”

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; performance and comparable benchmark returns; investment options; and how to obtain more detailed information, including education and/or advice.

After AARP pared down its more than 33 funds at one point during its 21-year relationship with Scudder Investments to a mere five in 2005, sub-advised by State Street Global Advisors, the new chief of its funds unit now wants to expand those offerings, with a new focus on retirement income.