Marli D. Riggs

Majority of young employees saving for retirement with TDFs

A growing number of younger participants in 401(k) retirement plans are investing in target-date funds, according to a recent analysis. Using data from the EBRI/ICI 401(k) database, Employee Benefit Research Institute finds that the percentage of recently hired 401(k) participants with two or fewer years of tenure holding TDFs jumped from 43.6% in 2008 to 46.6% in 2009 increasing slightly to 47.6% in 2010. …

Open architecture offers flexibility

With tuition costs on the rise, employees looking for ways to pay for their children's college education can save with 529 plans, a tax-advantaged savings plan that encourages parents or guardians to save for a child's college education. Phil Chandler, a financial adviser for Edward Jones, says the tax-free gains feature is the primary driving force behind the popularity of 529s. Previous products did not allow this aspect to be used for higher education.

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