Comments on: 401(k) Committee Chasing Performance http://thefinancebuff.com/2007/05/401k-committee-chasing-performance.html like a friend telling you about money ... Thu, 11 Mar 2010 22:05:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: JLP http://thefinancebuff.com/2007/05/401k-committee-chasing-performance.html/comment-page-1#comment-149 JLP Tue, 22 May 2007 23:04:00 +0000 http://blog.thefinancebuff.com/?p=113#comment-149 I have come to the opinion that 401(k) committees are stocked with people who really don't know what's going on. My wife's 401(k) is the same way. I have come to the opinion that 401(k) committees are stocked with people who really don’t know what’s going on. My wife’s 401(k) is the same way.

]]> By: Ted Valentine http://thefinancebuff.com/2007/05/401k-committee-chasing-performance.html/comment-page-1#comment-142 Ted Valentine Mon, 14 May 2007 16:03:00 +0000 http://blog.thefinancebuff.com/?p=113#comment-142 Hey, everyone knows the way to win at the stock market is to buy high and sell low! Hey, everyone knows the way to win at the stock market is to buy high and sell low!

]]> By: Shadox http://thefinancebuff.com/2007/05/401k-committee-chasing-performance.html/comment-page-1#comment-140 Shadox Sat, 12 May 2007 03:55:00 +0000 http://blog.thefinancebuff.com/?p=113#comment-140 What the 401k committee really "ought" to do is allow you all to invest in some index funds and realize that actively managed funds have repeatedly been shown to under perform their market benchmarks after expenses and trading costs are taken into account...<br/><br/>As a member of my company's 401k commmittee, I can tell you that the probable reason your 401k committee decides to chase performance is that they are worried about being sued by disgruntled employees... So to prevent a possible law suit for not allowing employees to invest properly, they prevent all employees from investing properly... I mean, clearly, no one can sue them for selecting funds with a better track record... that is the twisted logic that lawyers and frivolous law suits force upon us all.<br/><br/>Enjoy. What the 401k committee really “ought” to do is allow you all to invest in some index funds and realize that actively managed funds have repeatedly been shown to under perform their market benchmarks after expenses and trading costs are taken into account…

As a member of my company’s 401k commmittee, I can tell you that the probable reason your 401k committee decides to chase performance is that they are worried about being sued by disgruntled employees… So to prevent a possible law suit for not allowing employees to invest properly, they prevent all employees from investing properly… I mean, clearly, no one can sue them for selecting funds with a better track record… that is the twisted logic that lawyers and frivolous law suits force upon us all.

Enjoy.

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