Smart 401(k)

By Allan Henriques, CEO Smart Investor | Curated by Smart Investor for plan sponsors and administrators. http://www.smart-investor.cc/

Same but Different

How epigenetics can blur the line between nature and nurture.<p>On October 6, 1942, my mother was born twice in Delhi. Bulu, her identical twin, came first, placid and beautiful. My mother, Tulu, emerged several minutes later, squirming and squalling. The midwife must have known enough about infants …

Biology

The Very Big Thing That's Missing from the President's New 401(K) Proposals

It's not the cost of 401(K) that are the real problem.<p>Carl's company (a real client of mine with names changed) designs custom furniture. He has about 25 employees. It's a family business that he took over from his dad more than twenty years ago. Carl has a 401(K) retirement plan for his employees. …

Retirement

Forbes Welcome

Obama Wants to Help More Small Businesses Offer 401(k) Plans

He also wants to make them more portable.<p>On Tuesday, the Obama administration announced plans to make it easier for small businesses to provide …

Retirement

Can 401(k) Plans Be Improved?

In other countries, similar plans are more restrictive—and that may mean retirees are better prepared for life after work.<p>401(k) plans—the primary retirement vehicle for most Americans—sets people up for financial failure. It’s not just that Americans often don’t save enough, but that they use the …

Retirement

Supreme Court: Employers can be sued over high fees in retirement plans

The Supreme Court put employers on notice Monday that they can be sued if their retirement plans offer employees mutual funds with unnecessarily high fees.<p>In a 9-0 decision, the justices revived a lawsuit against Edison International and said the company had a "continuing duty to monitor" the …

Lockheed Martin to pay $62 million to settle 401k lawsuit

Feb 20 (Reuters) - Lockheed Martin Corp agreed to pay $62 million to settle a lawsuit in which employees accused the defense contractor of …

401(k)

Average 401(k) balance hits record $91,300

401(k) balances reached a record high last year, thanks to a soaring stock market and larger contributions from workers participating in the savings plans.<p>At Fidelity, the average 401(k) balance hit $91,300 by the end of 2014. While that's up just 2% from 2013, it's a jump of more than 30% from …

Retirement

Why you don’t (yet) have an annuity in your 401(k)

Among the many perks enjoyed by retirees with traditional pensions is the promise of guaranteed monthly income for life. You retire, and the checks start coming.<p>With defined-contribution plans such as 401(k)s, the task of figuring out how to create an income stream falls squarely on retirees’ …

Retirement

Retirement Fees: How much are 401(k) fees costing you? - CNNMoney

Retirement

401(k) fail: Expert sees ‘totally unexpected’ drop in accounts

Even one of the greatest bull markets in history can't improve the sorry state of 401(k) accounts.<p>According to a new report from the Center for …

Want to Add 130 Bps to Your Clients’ 401(k) Returns? Educate Them

NBER study finds that DC retirement plans of more sophisticated investors perform better on a long-term risk-adjusted basis, and there's a surprising …

U.S. Supreme Court

The Crisis in Retirement Planning

Corporate America really started to take notice of pensions in the wake of the dot-com crash, in 2000. Interest rates and stock prices both plummeted, which meant that the value of pension liabilities rose while the value of the assets held to meet them fell. A number of major firms in weak …

Retirement

Throwing 404(c) Participants (And Sponsors) Under the Bus: ERISA Section 404(c) False Promise of “Sufficient Information”

The Supreme Court’s decision in LaRue v. DeWolff, Boberg & Associates(1) in 2008 started a trend recognizing the need for greater protection of …

Little 401(k) Moves Mean Big Returns

When it comes to 401(k) expenses, less is almost always more.<p>You can take this to the bank: The more you reduce fund expenses in your 401(k), the greater your potential return. That holds true for funds that pass along their management and other expenses to you, which also reduce your total …

Retirement
Retirement

Mailbag: Is Funding My 401(k) Match Sufficient to Fund My Retirement?

I’m 25 years old earning $50,000 a year. I’m taking advantage of the fact that my employer offers a 4% match in my 401(k) if I contribute 5%. Am I saving enough to fully fund my retirement by age 65? (I do not want to count on receiving any Social Security.)<p>Retirement projections which factor in …

Retirement

Is Your Small-Company 401(k) Charging Too Much?

If you work for a small company of less than 100 employees, odds are high that you’re paying much more in 401(k) plan fees than larger companies.<p>Certainly, there are economies of scale in plan management, but that doesn’t mean you have to pay top dollar. There are many ways to save.<p>Here’s a …

Retirement

Best ways to tap retirement investment accounts

If you are like many Americans, you have a variety of investment and retirement accounts. When it comes time to live on that money, how do you decide which ones to tap first?<p>The goal is to maximize your ability to generate income throughout retirement while keeping your tax burden low. That may not …

Retirement

How Labeling Retirement Plans Like We Label Cigarettes Could Save Workers A Fortune

The financial industry routinely skims tens of thousands of dollars in fees off the top of American workers’ retirement savings accounts. The best …

Retirement

To retire, many need a ‘401(k) for life’ - Encore

By Matthew Heimer<p>There’s good news and less-good news in the latest report on retirement security from the nonpartisan Employee Benefit Research Institute. The good news is that, according to EBRI’s latest computer modeling, there’s one group of workers that has an 83% to 86% chance of saving …

Retirement
Finance