David Wray’s 401k Profit Sharing Plan Opinion

PSCA (Profit Sharing/401k Council of America) is a national non-profit organization of companies, whose main goal is to provide services for 401k plans and profit sharing. In 1978, the association managed to pass its proposal about the inclusion of Section 401 (k) in the current federal tax legislation.

For those of you who have not still found out, every year on the 8^th of September you can get acquainted with the aspects of the 401k plans. This day has been announced as the official 401k Day since 1995.

In one of his interviews, David L. Wray (the president of the PSCA), explains that most employees don't realize how important is 401k plan investment for their retirement years and thus rarely participate. On the other hand, most of them who actually establish a 401k plan fail to rebalance it appropriately.

Additionally, he points out that many employers overload their employees by presenting them with too many alternatives. In this way they confuse them by the too much information, which the average worker is not capable of sifting efficiently.

Wray highly recommends the asset allocation for 401k plans because they have proven their stability throughout the years even in times of economic instability. You should also carefully analyze your financial situation in order to efficiently allocate your resources.

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