Weekly Top 401k News

Whether you are an employer offering group retirement plans or an individual concerned with your own post-retirement financial stability, these headlines can help guide your decisions in 2012.

Fix Your 401(k) – from SmartMoney.com

Excerpt: Certainly, few of us need to ask whether the plans matter: We’ve resigned ourselves to our dependency when it comes to retirement savings. Americans now hold $4.3 trillion in 401(k)s and similar defined-contribution plans, nearly three times as much as the $1.6 trillion parked in annuities. The plans weren’t originally designed to be the nation’s primary retirement lifeline — they started as a minor tax perk for senior executives — but they’ve grown inexorably, as ever more big companies have used them as a cheaper alternative to traditional pensions. Only about a third of the corporate work force can look forward to a monthly pension check today, down from 80 percent three decades ago; over the same period, assets in 401(k)-like plans have grown 16-fold.

Testing the 4%-a-year Retirement Rule – from Wall Street Journal

Excerpt: In a subsequent study, Mr. Bengen added U.S. small-company stocks to the mix, which increased the portfolio’s volatility and potential return. To adjust for this, he revised the withdrawal rule to 4.5%.

In recent years, as stocks have become more volatile, many observers have wondered whether Mr. Bengen’s rule still holds. So far, he thinks it does.

7 Ways to Increase your 401k Contribution in 2012 – from The Smart401k Blog

Excerpt: Now is a great time to investigate how you can make improvements to your money management – and bumping up the contributions you make to your 401k plan is a great place to start.

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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