Changing jobs? Don’t let hidden 401(k) fees derail your retirement savings<\/a><\/p>\nLupo added that people stand a chance to lose much more money in a short period when investing in riskier assets. Those risks have kept many plan managers from embracing the idea.<\/p>\n
Chris Noble, policy director with the Private Equity Stakeholder Project, said there are serious drawbacks with private equity firms.<\/p>\n
\u201cThese funds are able to do their internal rate of return without eyes on how are they conducting the evaluation, you know, eyes on the underlying portfolio assets. Stuff that\u2019s a lot easier to see or disclose when it comes to public companies,\u201d he said.<\/p>\n
The Employee Retirement Income Security Act, also known as ERISA, requires employers to act in the best fiduciary interest of their employees, and Noble said adding uncertain assets may put workers at financial risk.<\/p>\n
\u201cWhen it\u2019s harder to measure the performance of certain investments, it\u2019s harder to know \u2014 should I be paying this much in fees for investment management if you are not able to get as much insight,\u201d Noble said.<\/p>\n
Still, some experts argue that doesn\u2019t mean everyone should avoid them. These investments can yield higher returns over time.<\/p>\n
\u201cIf you have a decade or two to be able to withstand the ebbs and flows \u2014 you should probably put a small percentage, maybe 1 or 2%, into these alternatives if you fully understand them,\u201d Lupo said.<\/p>\n
There\u2019s no law preventing retirement plans from investing in private equity funds, and the concept itself isn\u2019t new. But many companies may wait until the Department of Labor and the SEC establish a regulatory framework with guidance on how to proceed while minimizing risk.<\/p>\n","protected":false},"excerpt":{"rendered":"If you take advantage of your company\u2019s 401(k) retirement plan, your money is most likely invested in a…\n","protected":false},"author":2,"featured_media":101637,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":{"0":"post-101636","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-personal-finance","10":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/101636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=101636"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/101636\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/101637"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=101636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=101636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=101636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}