401k Participants Don’t Want to be Educated – They Want Help!
Most participants don’t want to be loaded down with confusing information, then left on their own to make investment decisions. These are critical life decisions that will impact their future and their family in countless ways. Participants need help with these tough decisions: “How much to contribute and how to allocate their investments?” They want this decision made for them by a competent professional or to be guided through a thoughtful, personalized decision-making process.
Individual retirement planning meetings are very effective but inefficient. The best scenario from the participant’s standpoint is to sit down with a qualified investment professional and review their options given their personal situation and preferences. But, this takes time and time is $.
February 21st, 2010 at 10:53 am
Just wondering if any active traders are starting to trade the ETFs? After reading the book by Larry Connors – High Probability ETF Trading – I switched and I would say overall my results have improved but there are fewer trading opportunities because of the small number of ETFs he writes about. ETFs seem to be a little less erratic in their price movement so that’s good but some of them have poor results using the systems he describes in the book.
February 23rd, 2010 at 3:09 pm
ETF’s still appear in a very small % of 401(k) plans. They do offer cost advantages and many actively managed funds do not outperform their benchmarks or drift from stated style.