Should 401(k) Plans Include Index Funds?

Who should decide on the funds available in your 401(k) retirement plan? It won’t be me and won’t be you. But, at this point, I’m torn on who should make the decision. Should the House Education and Labor Committee decide on the options available in your 401(k) plan?

The House Education and Labor Committee would like to improve fee disclosure in 401(k) plans. I’m always for transparency. But the proposal also states that plans should include at least one low-cost index fund.

Index funds are an excellent choice for investors. I would like to see everyone have an opportunity to invest in index funds; it’s the government mandate that bothers me. I’ll be writing about the issue as more details are available. Until then, let me know what you think by voting in the poll.