1300 American Airlines employees have been banned from trading their 401k accounts and an additional 800 warned their ban may be coming–this seems pretty broken to me. Blame T ROWE PRICE on the punitive ban to employees—yet another reason that mutual funds are an investor’s dinosaur made extinct (or should be extinct) by ETFs (Exchange Traded Funds).
Mutual funds are typically more costly and give the investor the illusion that their assets are being actively managed, when in reality they aren’t. While ETF’s aren’t actively managed, per se, a 401k platform, like those offered by Alphavest and Folio Institutional will actively manage all assets, ETFs, or otherwise in your 401k for you. This way you and your employees can do what you do best: WORK.
AND, better you wont wake up in 4 years with the same allocation that the broker who sold you the plan in 2009 put you in—your account and/or the accounts of your employees will have shifted appropriately for risk and market environment.
Is your 401k broken?
Start with Total Plan fees–most plans will experience well over 2.5% fees per year. This is BROKEN. Then, evaluate when you last saw your Plan Advisor—do you feel as if you have full transparency from the Advisor as to fees and performance? Get a 401k plan check up today. Great Smart Money article on the hidden advisors fees and other broken aspects of the 401k arena.