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If you've ever asked your
employer this question, you probably found that no one is really willing to answer it. At
best, you may have walked away with a brochure or an educational tool.
The reason is this: As plan fiduciary, your employer has to select investment options for
the plan and continue to make sure that these options are good, prudent investments. By
shifting the responsibility for deciding how the money should be invested to you, the plan
participant, plan sponsors avoid the liability of being held responsible for individual
investments, too. Plan sponsors don't want to give investment advice because if they do,
they could be held liable for the outcome of the investment allocations they've suggested.
Many companies are turning to firms like 401k Forum to provide investment advice to their
401(k) plan participants. 401k Forum, an independent investment advisor, takes over
fiduciary responsibility for the plan and provides participants with the answers they
seek. It's a win-win situation – participants get personalized investment advice and
plan sponsors get the peace of mind of knowing their 401(k) participants are in good
hands.
If your company does not offer 401(k) investment advice, you could ask your human
resources or benefits representative to look into a service such as 401k Forum. You can
use the "e-mail your HR department" feature in our Visitor’s Center to
introduce the idea to them. In the meantime, you may want to consult with a financial or
tax advisor regarding your own situation.
To learn more about investment options that are available to you, you could also visit
Individual Investor Online (http://www.iionline.com) or Microsoft Investor
(http://www.investor.msn.com). For more general information of interest to all 401(k)
account holders, keep visiting our frequently updated 401Kafe site. |
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