If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at http://www.rwinvestmentstrategies.com. If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.
Friday, September 17, 2010
A tsunami of retirees is about to hit the beach. And they aren't in a position to retire. And it is going to get worse. A big part of the problem is that retirees have poorly structured 401ks that they aren't contributing enough to.
BrightScope is a service that has taken on the monumental task of rating 401ks relative to peer plans. Every 401k participant can now look up the rating of his or her plan by going to www.brightscope.com.
If your plan is not rated, you should go to your human resources person and request that it be rated. If it is rated, you should look at the component ratings to ensure that you have good choices in your investment menu and low costs for the plan. You will notice that the site allows you also to do a personalized analysis of the costs you are bearing. Again, if the ratings are not satisfactory, you should ask the plan administrator why.
For too long, the costs of plans has been opaque, as Wall Street has hidden the excessive fees it charges.
Plan administrators are fiduciaries. As such, they are legally bound to provide plan participants with appropriate investment choices and educate plan participants in the investment process.
Full disclosure: I use the BrightScope data in counseling pension plans and pension plan participants.