BAM Director of Investor Education Carl Richards explains the behavior gap, or the reasons our personal investment returns often lag the returns of our investment vehicles.
While use of employer stock in retirement plans is decreasing, there is no excuse for allowing it all. We certainly don’t have to look far to find hundreds of thousands of employees where all or a good portion of their retirement funds vaporize when their company failed. To na...
It’s time to end the tax deduction for a contribution of company stock to qualified retirement plans. It’s bad for employees, bad public policy, bad accounting and bad tax policy.
Here’s a modest suggestion: If you hold your employer’s stock in your 401(k) dump it; if you are a plan sponsor you should terminate any option for company stock in your plan. In fact, the SEC and Department of Labor should prohibit it.