New 401(k) Tool, but Who Needs It?
New York Times (02/02/03) p.1B; Rosato, Donna

Boise Cascade, BellSouth, International Paper, and PepsiCo are among the companies offering employees full-service brokerage accounts for their 401(k) plans to widen the range of investment choices, but critics like David Wray of the Profit Sharing/401(k) Council of America, are concerned that too many choices may mean participants leave their plans unchanged and sustain heavy losses. Full-service brokerage accounts allow employees to invest in individual stocks, bonds, and mutual funds outside the core offerings of their retirement plan, but with little investment education participants may choose the wrong combination for their needs. However, some companies instituting this option have placed limitations on how much company stock, if any, can be bought, and other companies have limited brokerage accounts to only allow investments in mutual funds.

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