Offering No Load Mutual Funds with 401k

A friend tells me that the 401k plan I offer to employees should have a really good choice of mutual funds. Do employees really prefer such plans?- Robert S. Shoemaker, electronics shop owner in Bountiful, UT 84010

Robert, it is definitely true that more and more employees are showing a clear preference for mutual fund investment using the funds in their 401k plan. Mutual funds offer a great way for small investors like your employees to get some good returns. Plus, the fact that mutual funds are relatively low risk makes investing anxiety free for them. Because many people had their savings wiped out by the recession, you will find that safer investment avenues like mutual funds are more popular today.

Another aspect also makes these investments attractive to employees of small businesses. By investing in a mutual fund, your employee gets to participate in an investment that is managed by professionals and experts. Even if the employee himself is a novice when it comes to investing, he still benefits from the experience of the fund manager.

These are some of the reasons why employees like 401k plans that give them a good choice of mutual funds to pick from. If you have plans to set up a 401k for your employees, then you can opt for a DIY suite like the one offered by http://runityourself401k.com/. This suite not only lets you set up, manage and update the plan with the greatest of ease but also has a comprehensive line up of no load mutual funds from some top rated companies. Choosing a DIY package like this one gives your employees the freedom to quickly implement their investment decisions using the 401k funds. It is also easy to track a plan through monthly statements when you are using this kind of software to run it.

About Elliot Earl, Director, Pension Trade Association
Director, Pension Trade Association Founded in 1982, the Pension Trade Association [California Domestic Nonprofit Corporation #C1629080] is dedicated to helping workers save for their retirement through expanded coverage of 401k -type defined contribution pension plans.

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