Content provided in partnership with

Business Services Industry

401 Ok? . plans

Entrepreneur, Dec, 2002 by Jennifer Pellet

Once heralded as the remedy for an ailing social security system, 401(k) plans are losing their luster in today's topsy-turvy stock market. It's about time people took a closer look at these programs, contends Matthew D. Hutcheson, president of MDH Consulting Inc. in Portland, Oregon, who notes that the pressure of developing a retirement portfolio has long been a source of frustration and anxiety for many employees. "The 401(k) industry has been serving up a platter of financial junk food to America's workers," Hutcheson asserts. "Analysts spend months [examining] different mutual funds before selecting one, yet we go into a meeting and tell participants they have to select their mutual funds in 30 minutes."

Most Popular Articles in Business: Research and Markets : Tesco Plc - SWOT Framework Analysis; Do Us a Flavor - Ben & Jerry's Issues a Call for Euphoric New Flavors; eBay made easy: ready to start an eBay business? These 5 simple steps will ...; Katrina's lawsuit surge: a legal battle to force insurers to pay for flood ...; Wal-Mart's newest distribution center opened last month near the southwest ...; More »

Employers looking for a different retirement program for their workers--and themselves--may want to consider adopting a modified program dubbed a "targeted 401(k)," under which variables such as elected deferral, employer matching and profit sharing are optimally determined and redetermined year-to-year to target a specific level of future retirement income.

"A targeted 401(k) takes the burden of choosing investments off of the employee and places it with a professional manager," says Hutcheson, "and enables employees to continually evaluate their retirement portfolio and make adjustments to what they can control--their contribution levels--to ensure that they hit their retirement target." To find out more ,log on to www.401khelpcenter.com or www.benefitnews.com.

Business Services Industry

401 Ok? . plans

Entrepreneur, Dec, 2002 by Jennifer Pellet

Find Research Guides for:

Find Featured Titles for: Arts

Most Popular Articles in Business

Most Popular Publications in Business