A new type of 401(k): No fund-picking allowed
License (according to Flickr): Attribution License
(Money Magazine) -- The 401(k) is the best tool you have to save for retirement, but it can be an awfully clumsy one. In a typical plan, your employer essentially hands you a list of funds and says, "Here, you pick." Maybe you spend a weekend agonizing over whether to invest in this stock fund that looks for "opportunities for value," or this other one that goes after "emerging opportunities." (Both sound great! ) The catastrophic market crash of 2008, which took the average 401(k) balance down by 30%, has done lasting damage to the confidence of savers. Even though the S&P 500 (SPX) had doubled from its low, only 14% of workers at the start of 2012 were very confident about their retirement prospects, compared with 27% in 2007.
People:
David Booth
Overall Sentiment: 0.250176
Relevance: 0.826123
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| 0 | "People have been given a license for a machine they don't know how to drive," says David Booth, ... |
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Michael Lane
Overall Sentiment: -0.0807039
Relevance: 0.623207
| Sentiment | Quote |
|---|---|
| 0.110738 | "If people answered risk questionnaires accurately, no one would be in equities," says Michael Lane, ... |
| 0.0491125 | "If people answered risk questionnaires accurately, no one would be in equities," says Michael Lane, head of Dimensional's retirement business. "We don't ask questions that at the end of the day don't matter." |
| 0 | "People have been focusing on the rate of return and how much they can accumulate," says Lane. |
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Sherrie Grabot
Overall Sentiment: 0.0290483
Relevance: 0.556136
Christopher Jones
Overall Sentiment: 0
Relevance: 0.485237
| Sentiment | Quote |
|---|---|
| 0 | "The majority of 401(k) participants are not particularly informed about investing decisions, nor are they very interested," says Christopher Jones, ... |
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Olivia Mitchell
Overall Sentiment: 0
Relevance: 0.472622
| Sentiment | Quote |
|---|---|
| -0.117783 | "number." Mathematically there's nothing wrong with setting a number. Psychologically, though, it's far too fuzzy: What looks like a huge stash may not be enough to produce the income you need. "Even $1 million doesn't go that far anymore," says Olivia Mitchell, ... |
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Schwab
Overall Sentiment: 0
Relevance: 0.444996
T. Rowe
Overall Sentiment: 0
Relevance: 0.423093
Christine Fahlund
Overall Sentiment: 0
Relevance: 0.422362
| Sentiment | Quote |
|---|---|
| 0 | "You're getting stocks on sale," says Christine Fahlund, ... |
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Alicia Munnell
Overall Sentiment: 0
Relevance: 0.40929
| Sentiment | Quote |
|---|---|
| 0 | "We need to get the focus off of cash piles and onto cash flows," says Alicia Munnell ... |
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David Wray
Overall Sentiment: 0
Relevance: 0.394325
| Sentiment | Quote |
|---|---|
| -0.0428502 | "Reducing risk should not be about age only," says David Wray ... |
| -0.0329657 | "Reducing risk should not be about age only," says David Wray of the Plan Sponsor Council of America, a trade group for employers offering 401(k)s. "It should also be about the accumulation." |
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Key:
- Aggregate Sentiment is meant to be an indicator of an individual's overall sentiment.
- The Mean is meant to be an indicator of an individual's average comment sentiment.
- The Standard Deviation, when there are enough quotes, will indicate an individual's consistency of sentiment (i.e. a Standard Deviation of 0 would mean they were very consistent in their sentiment and 1 would mean they were very inconsistent).
Note that quote stats are likely to be meaningless beyond the aggregate score due to the tiny sample size. However, they are always provided just in case you find something useful there.
Additional Info:
Country: U.S.
Overall Sentiment: 0.0914021
Relevance: 0.611759
City: Austin
Overall Sentiment: 0
Relevance: 0.470127
Company: T. Rowe Price
Overall Sentiment: 0.326542
Relevance: 0.584631
Company: GuidedChoice
Overall Sentiment: 0
Relevance: 0.518999
Company: Financial Engines
Overall Sentiment: 0
Relevance: 0.482163
Company: Morningstar
Overall Sentiment: 0
Relevance: 0.46749
Organization: Center for Retirement Research
Overall Sentiment: 0
Relevance: 0.544857
Organization: Treasury
Overall Sentiment: -0.402757
Relevance: 0.46535
Organization: SPX
Overall Sentiment: -0.0801193
Relevance: 0.462833
Organization: University of Pennsylvania
Overall Sentiment: 0
Relevance: 0.421563
Organization: Plan Sponsor Council of America
Overall Sentiment: -0.0135335
Relevance: 0.408764
Organization: Boston College
Overall Sentiment: 0
Relevance: 0.380922
FieldTerminology: Social Security
Overall Sentiment: 0.514199
Relevance: 0.711226
FinancialMarketIndex: S&P 500
Overall Sentiment: -0.0442973
Relevance: 0.508868
FinancialMarketIndex: S&P 500 index
Overall Sentiment: 0
Relevance: 0.469873
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Provided Keywords:
- 401k
- annuity
- asset allocation
- dimensonal
- managed 401k plans
- management fee
- money magazine
- personal finance
- portfolio rebalance
- replacement income
- retirement
- retirement investing
- retirement plans
- social security
- target date funds
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