Take charge of your 401k Plan

The United States Secretary of the Treasury is encouraging an increase in government regulation on investments such as 401k retirement plans. Mr Geithner suggests that vagueness in various financial instruments is one of the contributing factors, towards the financial crisis that we’re now living.

The 401k retirement plan is a plan that everyone invests in. Unfortunately the values of most 401k plans all around the United States, are currently undergoing a full on nose-dive. This problem started off just recently, since a few years back, the bull market was supporting most companies, even those which were financially unstable.

Since the chapter has turned however, so did the results of such companies, and everyone is now wondering whether the said financial experts, who were investing the people’s hard-earned money into such companies, actually knew what they were doing.
Were the 401k plan managers really considering where they were investing the money? Did these people realize that the future of many retirees was in their hands? Maybe such experts should not have been in charge at all. If the managers were the experts they said they were, they should have realized that a financial meltdown was around the corner.

So at the end of the day, my advice is this:

• Take responsibility of your own 401k plan, and instead of simply relying on what other people tell you, do your own homework.

• Ask or read through your documents, to verify whether you can choose the investment, into which your monthly contribution goes.

• Have a look at the fees you are paying on the plan. Cheaper plans might be available.

• If your company won’t sponsor you plan anymore, you can simply switch plan into something more suitable.

• Finally, consider asking for a financial planner’s advice, to help you analyze your alternatives.

Reference: http://www.bizzia.com/articles/is-it-time-for-better-401k-oversight/