UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76384  
Subject: Re: Tracking Mutual Funds Online Date: 9/26/1998 11:00 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
IF writes:

I would expect that in the future more 401k plans will allow all account transactions to be completed on the internet.

That said, I think there should be some concern that internet access is allowed. 401k plans are designed long term investments for retirement. Having easy access to the account may encourage people to try to time the market and readjust their accounts based on how the stock market fared yesterday. Chasing up or down trends in the market may have an adverse effect on returns.


IMHO many more but never all 401k plans will use internet access to allow participant transactions and monitoring. Just remember that doing so is not a cheap thing to do, and that cost almost certainly will be passed on to 401k participants. That cost will futher denigrate return performance. Convenience has its drawbacks.

As to market timers, that issue has been examined exhaustively in plans that use daily pricing and have both telephone and internet account change capability. These studies reveal consistently that less than 5% of folks do anything when the markets shift. For that reason, IMHO the issue of market timing within 401k plans is one without merit..

Regards……Pixy
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Russia Collapsing Again?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement