"I've been asked more times than I can count how I'd fix the (retirement) system; now all I have to do is to endorse the American Freedom 401 Plan."

William Bernstein, Editor of Efficient Frontier,
an on-line journal of practical asset allocation,

"We need to monitor and curb this excessive trading," prevalent among the more educated and affluent participants. "It does nothing for one's own personal rate of return and indeed this rapid trading causes real cost to portfolios that are borne not just by those who trade, but by all who invest for the long-term."

Gerard Mullane, a principal at the Vanguard Group, "10 Challenges That Will Face 401(K) Sponsors in the Next Decade", International Foundation of Employee Benefit Plans Daily News

"…sponsors should evaluate whether Internet-based transactions and voice-response systems are really necessary…Plan sponsors may save significantly by eliminating these standard-but optional-perks. A lot of money is being used to market and sell, and a lot of the money is being used to create services I don't hear people asking for…"

Charlotte Garvey, freelance writer based in Washington, D.C., "Is Your 401(k) Squeezed By Costs?"
The Society for Human Resource Management,

"There has to be an aggressive push for managed options as a default for people who don't know a stock from a bond, and don't want to know."

Robert Markman, president of Markman Capital Management, Minneapolis, Kiplinger's Personal Finance, "Performance Gap for 401(k) Investors" March 1999

" … providers, are trying to create a product to sell."

Dallas Salisbury, president, Employee Benefits Research Institute, Washington, Financial Planning, The Future of the 401(k), July 2000 (referring to the demand for "do-it-yourself" 401(k) plans, which he says are demanded by a "noisy minority")

"…economists Brad Barber and Terrance Odean at the University of
California at Davis looked into the stock-trading behavior and investment performance of more than 1,600 investors who switched from phone-based to online trading from 1992 to 1995. Big mistake. Individuals who made the switch traded more actively and more speculatively than before, and their returns went from beating the market by an average of 2% to trailing it by more than 3% annually."

Christopher Farrell, BusinessWeek online,
OCTOBER 6, 2000

"Currently, participants spend very little time doing research on their own no matter what amount of education the plan sponsor provides."

J. Michael Scarborough, president and CEO,
The Scarborough Group Inc., Annapolis, Md.,,
, March 06, 2001

"Nobody thinks about fiduciary liability when the stock market is roaring. But when it whimpers, employees and retirees look to blame someone, and the plaintiff's bar will see this as the next big payday."

John Eskew, CFO, Windermere Real Estate Services Co., Seattle, CFO Magazine, "Defending your 401(k)" April 2000

  © 2007 Brooks Hamilton & Partners