On Bauer Business Focus — A conversation on 401k’s and retirement planning with Andrew Schneider, business reporter for KUHF 88.7 FM.
About 50 percent of employers offer 401k’s, and many others offer simpler plans to employees, and when employers offer a 401k, they take on a number of responsibilities.
Andrew Gardener, president of Tanglewood Legacy Advisors, stopped by Bauer Business Focus this week to talk about retirement and financial planning.
“The owner of the company is fully responsible for everything about the plan, the selection of the plan, about who the money managers are, what the investment choices are, making sure that money is deducted on a regular basis from the payroll and to make sure that the money is contributed to their individual plans and the safety of the plan,” Gardener said.
There have been many cases of employers offering faulty plans, such as Enron. The company was accused of misleading employees to make inappropriate investment decisions in their 401k, but there have also been more common cases on a smaller level than Enron.
“There have been other examples where employers didn’t provide the proper choices or didn’t invest the money on a regular basis,” Gardener added. “Typically these are going to be smaller companies, less well-known companies, and the major companies typically don’t make those kind of mistakes.”
Click here to hear the full interview.