401 k Participants Turn to Pros For Help Managing Their Money
Below is a MRR and PLR article in category Finance -> subcategory Personal Finance.
401(k) Participants Seek Professional Help for Better Money Management
Summary:
As a computer engineer, nurse, or graphic designer, staying updated in your field requires significant effort. But what happens to your 401(k) retirement plan while you focus on your career?Article Body:
Whether you're a computer engineer, nurse, or graphic designer, staying at the top of your field can be demanding. Amidst your professional commitments, is your 401(k) retirement plan getting the attention it needs? It's easy to push it to the back of your mind, hoping it will perform well on its own.
Fortunately, recent changes in the industry mean investors can now receive more targeted assistance with their 401(k) accounts. Previously, to avoid conflicts of interest, plan providers could only make broad asset class suggestions. Now, regulations permit financial service companies to employ independent advisors, like Ibbotson Associates, to manage individual 401(k) portfolios actively.
Opting for professional management means your investments will be appropriately allocated, regularly rebalanced, and adjusted over time to align with your evolving life circumstances. This option is becoming increasingly popular.
Ibbotson serves as an independent advisor for 401(k) programs offered by AIG VALIC, Fidelity, Great-West Retirement Services, Merrill Lynch, the Principal Financial Group, and TIAA-CREF. Although these managed accounts have only been available for a couple of years, participation is on the rise. According to the industry research firm TowerGroup, over $10 billion is already invested in these programs, with expectations of reaching $300 billion by 2010.
The growth is largely due to employees' lack of confidence in managing their retirement plans. A study by human resources firm Hewitt Associates revealed that only 16% of 401(k) participants made any account changes in 2004. The study also showed some employees weren't investing aggressively enough, while others took excessive risks, with about 27% of their 401(k) assets concentrated in company stock.
Seeking professional guidance might be the key to optimizing your retirement strategy.
You can find the original non-AI version of this article here: 401 k Participants Turn to Pros For Help Managing Their Money.
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