Actually, instead of fewer choices, I would prefer being able to link to ING (Sharebuilder) for greater diversity in picking dividend stocks. Our plan at work, while excellent, compared to other plans doesn't have enough "safe" investments to me. I lost nearly 50% in 2007-2008. We only have one bond fund and one guaranteed fund (at about 1%). So...basically you are earning nothing. I also think we should be able to buy treasury bonds via payroll deduction just as another option to the current plan. You can do this on-line; however, the changes made by the Treasury Department have made doing so almost impossible. You have to key in so many codes. Oh well...something beats nothing that's for sure. And who can trust officers who manage large pension funds. They are subject to bad choices just like everybody else. You would have a small group of individuals making decisions on your behalf.
kaybttof CA4:22PM February 18, 2010
Americans are, apparently, willing to give up a lot of their freedoms. But to give up the freedom to make important decisions about your own financial future--which means having as many choices of investments as possible--is truly sad. Making good, well-diversified financial decisions does require a little reading, a little effort, and a regular schedule to research and pay attention to those investments. But that's a small price to pay for knowing about and protecting your future. Researching stocks and mutual funds is easy to do on the Internet through many respectable, responsible sites like Fidelity, E-Trade, and Morningstar.
To me the stupidity of people who say what this article claims that they are saying would be the equivalent of letting someone pick the food that you eat and the doctor that you will go to. Those decisions, too, are critical to your future.
Americans had best wake up. We haven't been defeated in battle because of the bravery of our military, but we can easily cause the country, as well as our own financial futures to collapse if we are unwilling to do a little work and make the effort. Knowing something about finance is essential to be successful and to educate and raise your family.
By the way, we saw exactly what happened in 2009 to many people who put all their money in their company's stock. They lost it all. The number one rule of investing--diversification.
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kaybtt of CA 4:22PM February 18, 2010
Sherlock Holmes of NH 3:18PM February 18, 2010