How Worthless is Your 401(k)?

Employees who’ve watched their balances fall are getting bitter, and who can blame them?

…Then came trouble. First there were problems with too many employees holding too much (bad) company stock in their 401(k) plans, a situation which came to a head during the Enron mess. Then came a slew of employee lawsuits in 2006, aimed at employers who were filling their investment menus with high-fee mutual funds that shifted the costs of managing the retirement programs away from employers and on to the workers. Now, with the stock and credit market crisis of the last year, a whole other round of 401(k) problems have come to the fore.
For starters, the median 401(k) investor lost 28.3 percent of their account’s value in 2008, according to a study by Hewitt Associates - and that was before the Dow Jones Industrial Average dumped another 25 percent of its value in the first quarter of 2009. Some of that has come back, of course, but just at a time when workers might think they should be investing more in the beaten-down market, a number of big-name employers (General Motors, Boise Cascade, Frontier…

Continued here:
How Worthless is Your 401(k)?

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