Sherry, Well, the entire concept of the 401K is terribly flawed. The idea that companies should be involved in selecting acceptable investments for employees' money is ludicrous. Didn't we learn anything from the pension fund disaster of the 1970s? Nearly every 401k account I've seen has been a selection of mediocre mutual funds. Generally, these offer a fund in each of many different categories, but a stinko fund in a category doesn't feed the bulldog, IMHO. Most do not offer international small or mid cap, the most undervalued area going forward. Heck, our plan doesn't even have a small or mid cap domestic fund, much less an international in those areas. It is sad.
One stock, whether your co. or not, is too risky an investment. Unfortunately, most cos make their "contribution" to the plan in the form of co. stock. Thanks to the fact that it costs them nothing under current accounting rules. But we won't have to worry about that long as co. contributions are starting to disappear. Then, the only good thing about a 401K will be a temporary postponement of taxation. And forced savings, which some folks need.
Sorry for the rant, but that's my nature. <g> |
