Practice

Although the Pension Protection Act permits 401(k) fund administrators to give advice to participants as long as fees collected from the advice remain constant, no matter what the investment choice, it doesn’t address the problems that arise when the advice steers investors into funds run by the 401(k) administrator itself, The Wall Street Journal reports.

A U.S. Supreme Court case of a 401(k) investor from Dallas who claimed his employer failed to execute an order, costing him $150,000, may pave the way for lawsuits by individual investors, rather than class-action suits.

Let's hope Social Security remains a fixture on the American scene. There are too many senior citizens dependent on it, and with $1 million seeming to be the magic retirement savings goal, a vast majority are going to fall far short of that. In fact, some experts have said that even wealthy investors will be at least partially dependent on Social Security.

Much as target-date funds are gaining traction in 401(k) plans, parents investing in 529 college savings plans are overwhelmingly preferring age-based funds that become more conservative as a child’s first year of college approaches, Investment News reports, citing speakers at the recent 529 Technical Conference.

Employers and employees at small businesses don't see eye to eye when it comes to 401(k)s, according to a Harris Interactive survey commissioned by ShareBuilder Advisors, a 401(k) administrator that specializes in serving small companies.

Chief compliance officers should make the valuation of distressed securities their No. 1 priority, Andrew J. Donohue, director of the division of investment management at the Securities and Exchange Commission advised at last week's national CCOutreach meeting, the agency's educational program for CCOs.

The Securities and Exchange Commission continues to recognize the growing influence of the Internet on the mutual fund industry by giving investors greater access to financial information online.

Let's hope Social Security remains a fixture on the American scene. There are too many senior citizens dependent on it, and with $1 million seeming to be the magic retirement savings goal, a vast majority are going to fall far short of that. In fact, some experts have said that even wealthy investors will be at least partially dependent on Social Security.

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