Out Fox The $treet

It still amazes me that the prime method of saving for retirement is a closed system that allows limited investment options chosen by the employer where highs costs aren't disclosed. Clearly the 401(k) system is better than nothing at all and the old pension system. It just needs to be modernized to catch up with the current fast paced world. When I left Verzion a couple of years back, the whole process of moving my 401(k) out of the control of Verizon and into a IRA at Fedelity was enlightnening. As somebody interested in the stock market and becoming a financial advisor it was always very frustrating to see my wealth accumulating in a 401(k) plan with little ability to direct my investments other than basic mutual funds. Verizon of course had a strong plan compared to most in the industry with a high matching contribution and a decent selection of funds. Unfortunately though it didn't always provide the options that I wanted and expenses weren't readily available. A...

Any followers of this blog know that I typically focus on individual stock research. My goal for 2012 is to spend some more time focusing more on trends in investments and especially more time on retirement options. Interesting article yesterday from the Associated Press regarding trends in 401K plans. Mostly positive trends, but generally basic themes that are incredible that they weren't automatic from the beginning. Disclosing fees wasn't a requirement from day 1? Finally moving towards advice is another better late than never concept. My number 1 frustration remains that the focus is on fees and not performance. Why not focus more on net return and less on fees? I'd rather pay 2% for a fund that makes 20% than 1% for a fund returning 10%. Sure I'd rather get 21% from the first fund with it charging only 1%. Still competition ultimately reduces fees, but net performance should be the focus. Read the article for more details on the trends. Below are the 9 trend...