There’s Hope For 401(k) Participants

It has been my long-held view that most 401(k) plans are a national disgrace.

Most 401(k) plans are flawed

Part of the problem is that the underlying concept behind how many 401(k) plans are administered is fatally flawed. They assume that employee plan participants are capable of managing their retirement assets, or even willing to do so. The issue is compounded by the fact that many plans maintain a dizzying array of investment options (often 20 funds or more). Plan participants with varying degrees of financial sophistication are then responsible for selecting the right combination of funds from among this host of choices to construct a globally diversified portfolio in an appropriate asset allocation. For many people, this is an impossible task.

Read the rest of the article at The Huffington Post.

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