Benefits Think Plan sponsors beware: Newsletters encourage participant trading in 401(k) accounts

Published 3 Min Read

A few weeks ago, T. Rowe Price banned more than 1,300 participants from the American Airlines 401(k) plan from trading in some of its funds. The vast majority of these participants were following trading recommendations published in a newsletter. Last week the Wall Street Journal reported on the emergence of a 401(k) trading account newsletter industry. This is not a welcome development for plan sponsors. Here’s why:

Traders never prosper in the long run


For reprint and licensing requests for this article, click here.


More From Employee Benefit News

Sign Up Form

Login Modal Form