Just when the fatigue concerning retirement fees comes into the limelight, exchange traded funds (ETFs) are here for the rescue. Congress is "likely" to pass legislation to expand 401(k) disclosures because many political leaders are concerned with fees in retirement plans. Lisa Shidler of InvestmentNews reports retirement assets are being diminished due to the high fees participants must pay. Although fee disclosures are a concern for Congress, major tax changes are unlikely until 2009 or 2010, because the Pension Protection Act was passed into law last year. However, dozens of tiny improvements are in need to correct pension legislation and none of them would effect the intent of the new law.
While Congress works this out, ETFs in 401(k) plans have begun their debut. They are less expensive, tax-friendly and have no hidden fees.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.