A new 401(k) success formula: Low cost plus advice – Reuters 02-28-13

Salient to Investors:

Mark Miller writes:

  • A growing number of employers are adding unbiased third-party investment guidance options as they work to improve their retirement plans.
  • The best type of planner: independent advisers who have the fiduciary responsibility to put client interests first.
  • A Deloitte Center for Financial Services survey found that 58 percent of Americans don’t have a retirement plan, 39 percent don’t think their returns will be sufficient to provide a decent retirement income, 57 percent prefer handling their own retirement planning, and 38 percent say they don’t need professional advice.
  • Aon Hewitt, said one-third of all US plans offer a third-party investment advisory service either online or by phone, 25 percent offer in-person consultations, but only 15 percent of plan holders used a personalized advisory service in 2011.
  • BLS says just 49 percent of workers at companies with 100 or fewer workers have access to a retirement savings plan on the job.

Read the full article at http://www.reuters.com/article/2013/02/28/us-column-miller-idUSBRE91R1A320130228

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