Your Personal 401(k) Handbook |
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How to Lobby for Change
It may seem like creating change in this area is about as likely as turning lead into gold. But that doesn't mean you shouldn't try if the situation really demands it. Here are a few points to keep in mind.
Go in prepared. Compare your 401(k)'s performance to a stock index like the Standard and Poor's 500. Has the plan performed better or worse than the market at large?
Present alternatives. Get information from a mutual fund company about how they can supplement a 401(k) plan with one of their funds. Obtain background on the fund's performance and management.
Draw comparisons. What kind of retirement plan do your company's competitors offer their employees? See if you can get a copy of the bad guy's benefits sheet.
Listen. Perhaps there are mitigating features of your lemon-like retirement plan you were never aware of. Give your benefits manager the chance to fully explain what the plan can offer you.
Make a new friend. It's fairly likely your benefits director never had any input into your company's choice of 401(k). Maybe he/she privately thinks it's as flawed as you do. Getting a friendly benefits director on your side is a crucial step toward moving the levers up top.
Don't give up hope. If your concerns persist, you might consider writing a letter to the vice president in charge of benefits requesting a meeting. Doubly apply all of the above rules, especially the one about listening, before going into that office. And even so, the V.P.'s hands might also be tied, especially if the company is a large one. "The final decision may be up to that company's shareholders," said one insider.
Next: How to decode your monthly statement >
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