Comments on: 401(k) Committee Chasing Performance http://thefinancebuff.com/401k-committee-chasing-performance.html like a friend telling you about money ... Tue, 22 May 2012 00:03:35 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: sam andreano http://thefinancebuff.com/401k-committee-chasing-performance.html#comment-5889 sam andreano Sun, 13 Feb 2011 16:02:15 +0000 http://blog.thefinancebuff.com/?p=113#comment-5889 401k committees are a joke. THey dont need any experience to make decisions for everyone in the company. A broker needs a series 7 license to sell stocks but a 401k committee member can be be a high school dropout. They dont offer any true diversification, such as real estate funds, TIPS, commodities or anything that would allow true diversification. And is the market turns against you, dont think you can get out and then back in as you will be branded a serial trader and possibly fired from your job. So, we live in America where we are supposed to be free, just not free to decide how to invest OUR OWN MONEY. IRAs and SEPs allow people to choose their investments but 401K members are stuck with idiot committee members picking the funds. 401k committees are a joke. THey dont need any experience to make decisions for everyone in the company. A broker needs a series 7 license to sell stocks but a 401k committee member can be be a high school dropout.

They dont offer any true diversification, such as real estate funds, TIPS, commodities or anything that would allow true diversification.

And is the market turns against you, dont think you can get out and then back in as you will be branded a serial trader and possibly fired from your job.

So, we live in America where we are supposed to be free, just not free to decide how to invest OUR OWN MONEY.

IRAs and SEPs allow people to choose their investments but 401K members are stuck with idiot committee members picking the funds.

]]> By: JLP http://thefinancebuff.com/401k-committee-chasing-performance.html#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/401k-committee-chasing-performance.html#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/401k-committee-chasing-performance.html#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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