Employers Can Override Your 401(k) Investment Choices

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I work for a mutual fund company who provides investment vehicles for, among other things, 401k plans. I am still a big believer of investment but I am giving serious consideration to my 401k. I am looking at the disastrous policies our democrat and republican ass clowns in DC have imposed on us over the years and I have little confidence that my tax rate will go down when its time for me to retire. Furthermore, I am growing increasingly uncomfortable with having the largest chunk of savings tied up until I'm 65. Look at how much has happened in the last 12 months. Think about what can happen in the next 25+ years. To Charles' comment above foreseeing the housing/credit crash, I think we are headed to a bigger bubble crash fueled by the trillions of dollars in bailouts. Caveat freaking emptor, friends.

Mrs. X of CO 3:01PM December 19, 2009

Dec 2007 Net Worth $993,000,000.00 - Dec 2009 $000,000,00.00 Equity based non-tangible 30 years of employment. Jan 2010 New Zealand real estate Net Worth Unreported to IRS - Legal deadline June 2010 otherwise democrat jews = democrat jews & obama black caucus will be spreading your wealth...

leftwingsuckers of NV 8:45PM November 30, 2009

The 401k is an obscure tax code created to benefit over compensated General Electric Executives. It was NEVER meant to be the basis for a one size fits all retirement plan.
The other HUGE lie is the market is ZERO SUM GAIN!!!
YOU CAN"T WIN UNLESS SOMEBODY ELSE LOSES!
Just look at the tiny minority of billionares that won when we all lost in this latest economic failure.
Whether you belive it or not your Government and Wall Street are setting us all up for a huge human disaster. When the baby boomers start cashing in the rest of us are gonna be the loosers. But Wall Street and the idiots in Government will keep telling you the market is infinate and is the answer.
Good Luck

Dean of OR 2:58PM July 20, 2009

I am in my late 20s, well paid, and far more knowledgable than the average person with regards to finance. This quote scares me:
"For a 20-something employee with no equity exposure in his retirement account, an employer has the ability to move his retirement stash into an age-appropriate default investment."
What they are saying is that if you are young and move your money to the sidelines (money market) then your employer should put your money back into the market. Doesn't matter that any smart person who went house shopping from 2004+ the east or west cost would realize that a major crash was about to happen. Doesn't matter that the vast majority of financial experts didn't see the crash happening. Doesn't matter that most of the 401k options perform worse than a given index fund within their respective market segment.
I avoided cutting my retirement in half by recognizing signs of problems and ignoring all the hype of experts. None of those problems have been solved!
Emily, please stop telling employers that they should force employees to take unecessary risks. If anyones employer ends up readjusting their funds in a way that causes them to lose money then they should absolutedly persue legal action to recover the lost money.

Charles of VA 11:05AM July 20, 2009

apparently some who read this article don't seem to understand that the government is taking away options and wishes to continue to do so...
you have the ability to transfer (rollover) money (vested) in some exisiting 401(k) accounts if they are designed correctly...so take some personal responsibility for your retirement, health care and maybe even your life...the last thing any of us want is health care that is bankruprt like social security, combined with the efficiencies of the post office and the courtesy of the irs
the more you tax the people that YOU WORK FOR the less they want you around, the people with the money make the choices...regardless of what government does...so wake up and make a choice to control your life...if not the people with the money will be taking care of that for you...

tj of IL 2:54AM July 18, 2009

Participants in a 401(k) Plan always have the ability to choose their own investments. 90% of participants don't know a stock fund from a bond and aren't capable of building a diversified portfolio, so employers are trying to help.
The 401(k) system should be scrapped and replaced with a Australian type super annuation program.

100% Gold of KS 1:02PM July 16, 2009

When I was employed my 401k options did not include one to put my money on the sidelines in a bad market.
I think an employer might talk to the employee about their bad investment decisions and perhaps get them to sign off if they do not want the company switching their investments.
If the company switches investments for an employee and the person loses money they should be entitled to find out others this has happened to and start a class action.

Joan Dalton of AL 11:32PM July 15, 2009

OBAMA IS RIGHT ON TARGET. HEALTHCARE FOR ALL IS A RIGHT , NOT A PRIVLEDGE FOR THE RICH. REMEMBER FOLKS GETTING HEALTHCARE FOR ALL IS PERSONAL FOR THE PRESIDENT. OBAMA REMEMBERS IS OWN MOTHER DYING AND HAVING TO FIGHT FOR COVERAGE FROM THE INSURANCE COMPANIES.
FAILURE TO GET A HEALTHCARE PLAN FOR ALL IS NOT AN OPTION! THE AMERICAN PEOPLE WANT UNIVERSAL HEALTHCARE FOR ALL THAT IS AFFORDABLE FOR ALL. IF THE MILLIONARE HAVE TO PAY THEIR FAIR SHARE ( 5%, 10% OR MORE) SO BE IT. EVEN WARREN BUFFET A BILLOINARE HAS REMARK ON NUMEROUS OCCASIONS THAT HE PAYS LESS OF A PERCENT IN INCOME FOR TAXES THAN HIS SECRETARY AND IT IS NOT RIGHT!

LAWRENCE F. KUBINSKI of OH 2:38PM July 15, 2009

for this "vehicle" to replace pension plans and become the national retirement system, it would have given the thing a NAME, instead of just a code section number as a legislative accident.
401(k) is a poor, poor substitute for retirement "policy" in our country. You have been thoroughly hoodwinked on this by corporations---from those who dropped their pensions to those who "manage" your money.
At the moment, you can't do anything about it. But also AT THE MOMENT, a Dem Congress is trying to unhoodwink you with respect to health care----another biggie. You had better pay attention and get the Dem reform passed--complete with a public option. This is probably the only chance you're gonna get.

Muser of NM 2:17PM July 15, 2009