Summary
As thousands of people face foreclosure of their mortgages and an increasing number of subprime mortgage lenders close shop, some employers wonder how the crisis will affect their retirement plans. During the past few weeks, financial advisors have received an increasing number of calls from 401(k) plan sponsors concerned about two things: how plan participants are reacting to the crisis and whether they, as plan fiduciaries, should replace funds in their plans that might be affected by the blowup in subprime mortgages. In times of market volatility, companies need to communicate to plan participants about the importance of long-term investing, says Pam Hess, director of retirement research at Hewitt Associates.
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Extract
Subprime Stress
As thousands of people face foreclosure of their mortgages and an increasing number of subprime mortgage lenders close shop, some employers wonder how the crisis will affect their retireme...
See the full content of this document
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