Doors May Open to 401(k) Advice
New York Times (09/01/02) ; Rosato, Donna

Over 42 million U.S. workers have an estimated $1.6 trillion in their 401(k) retirement plans, and many are waiting to see how Congress will reconcile several pension reform bills that would allow companies to offer investment advice to their 401(k) plan participants. The House Pension Security Act would make employers responsible for providing investment advice to plan participants, but experts note that the House bill does not contain the provisions against possible conflicts of interest and directions for third-party providers that the two bills being considered by the Senate include. Financial advisors stress diversification of retirement holdings as the key to reducing risk, and note that many workers' 401(k) plans continue to be overloaded with company stock.


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