via Wall Street Journal — This article features commentary from Samuel Henson, Vice President of Lockton Retirement Services.
If you have cash parked in a money-market mutual fund in a 401(k) or similar plan, you may want to start preparing for sweeping changes on the horizon.
Effective Oct. 14, 2016, the Securities and Exchange Commission plans to put in place new rules that will require certain funds to abandon their stable $1-a-share value, and allow some funds to temporarily suspend redemptions or impose liquidity fees on investors withdrawing assets during volatile periods.
The changes could affect millions of Americans, including those who invest on average 4% of their assets in money-market mutual funds in a 401(k) or similar plan. The new rules also apply to money funds held in individual retirement accounts and taxable accounts.
