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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Gersh Avery who wrote (3035)1/12/1999 6:46:00 PM
From: DCPI  Read Replies (2) | Respond to of 99985
 
Gersh...

Mutual fund flows and 401(k) flows are two different things. The only way to tell 401(k) flows is to look at data from the Department of Labor. Unfortunately, this data is three years or so old and looks at the data annually -- not by month.

I think that 401(k) cash flows are not as big as people assume. For example: in 1993 (the most recent year for which I have data handy) there were $69 billion in contributions and $44 billion in benefits for a net flow of $25 billion for the year.

I would guess that the number is may now be as high as $50 billion (the average person puts $2000 in a 401(k) per year and 25 million people are active in plans). This is still a small number compared to mutual fund cash flows.

Sean