Our Erisa attorney signed off on it and said he thought it was a great idea. So we got the green light and moved ahead. Now Southwest Airlines is reportedly considering hiring an education and advice provider for its plan. Looking at asset allocation and account growth in the plan, Chase believes that participants are now utilizing more rational investment strategies as a result of the mPower service. And too many employees don't bother to change their investment choices after entering their plans, even though market conditions and risk tolerance change dramatically over time.
Diversification is probably the biggest risk issue.
Investment-advice programs can correct these common problems and reduce risk for plan participants. Markets go up and down based on various factors. Plan sponsors should be taking greater responsibility for investment performance, Mr. Scarborough believes. Then employees can decide what they need and then go get it. So they're going to seek help, from a co-worker at the water cooler, a relative, a friend or from someone who knows what they're doing.