Wealthy Living 401k Retirement

Does it just languish, forgotten, in some dusty corner of your mind? Are you, among millions of others, crossing your fingers and hoping your portfolio will provide?

Thanks to changes in the industry, investors now can get more help managing their 401k accounts. In the past, to prevent conflicts of interest, defined contribution plan providers could make only general asset class recommendations. But regulations now allow financial service companies to hire independent, third-party financial advisers like Ibbotson Associates to manage individual investors' 401k accounts.

Those who choose professional help will find that the money in their portfolio will be allocated appropriately to funds in their existing plan, rebalanced regularly and adjusted over time to meet changing life circumstances. And these programs are catching on.

Ibbotson is the independent third-party advisor for 401k managed account programs run by AIG VALIC, Fidelity, Great-West Retirement Services, Merrill Lynch, the Principal Financial Group and TIAA-CREF. Although 401k managed accounts are only two years old, participation in such programs is increasing rapidly. Currently there is over $10 billion in 401k managed account programs, and that number is expected to reach $300 billion in 2010, according to industry research firm TowerGroup.

A major reason for the growth is that many employees don't know how to manage their retirement plans. If you have such an account, let the professionals help you make the most of your retirement plan.  You owe it to yourself.