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Glad I junked mine when I did!
http://articles.moneycentral.msn.com...sh.aspx?page=1
Investors trying to pull cash out of their retirement plans, or simply replace the weaker options, are finding their money trapped even as their balances dwindle
Individual investors might not even be aware of some behind-the-scenes maneuvers causing liquidity problems in their retirement plans. Many funds offered in 401(k) plans lend their portfolio holdings to other investors, receiving in exchange collateral that they invest in normally safe, liquid holdings.
The aim is often to generate a small but relatively reliable return that can help offset fund expenses. But in recent months, many of the collateral investments have gone haywire, prompting money managers to restrict retirement plans' withdrawals from the lending funds.
Investors in the Principal U.S. Property Separate Account said they understood the risk of losses but didn't think their money could be locked up for months or years. Most participants in the 15,000 plans holding the fund haven't been able to make any withdrawals or transfers since late September.
"To sell property at inappropriately low prices in order to generate cash for a few would hurt the majority of investors and violate our fiduciary obligations," said Terri Hale, a spokeswoman for Principal Financial Group (PFG, news, msgs), the fund's parent. The fund, which had $4.3 billion in net assets at the end of April, still is making distributions for death, disability, hardship and retirement at normal retirement age.
As of April 28, redemption requests that had yet to be honored totaled nearly $1.1 billion, or roughly 26% of the fund's net assets. Principal doesn't anticipate that it will make any distributions to investors who have requested redemptions until late 2009 or beyond, Hale said. Meanwhile, the fund continues to fall, declining 25% in the 12 months ending April 30.
http://articles.moneycentral.msn.com...sh.aspx?page=1
Investors trying to pull cash out of their retirement plans, or simply replace the weaker options, are finding their money trapped even as their balances dwindle
Individual investors might not even be aware of some behind-the-scenes maneuvers causing liquidity problems in their retirement plans. Many funds offered in 401(k) plans lend their portfolio holdings to other investors, receiving in exchange collateral that they invest in normally safe, liquid holdings.
The aim is often to generate a small but relatively reliable return that can help offset fund expenses. But in recent months, many of the collateral investments have gone haywire, prompting money managers to restrict retirement plans' withdrawals from the lending funds.
Investors in the Principal U.S. Property Separate Account said they understood the risk of losses but didn't think their money could be locked up for months or years. Most participants in the 15,000 plans holding the fund haven't been able to make any withdrawals or transfers since late September.
"To sell property at inappropriately low prices in order to generate cash for a few would hurt the majority of investors and violate our fiduciary obligations," said Terri Hale, a spokeswoman for Principal Financial Group (PFG, news, msgs), the fund's parent. The fund, which had $4.3 billion in net assets at the end of April, still is making distributions for death, disability, hardship and retirement at normal retirement age.
As of April 28, redemption requests that had yet to be honored totaled nearly $1.1 billion, or roughly 26% of the fund's net assets. Principal doesn't anticipate that it will make any distributions to investors who have requested redemptions until late 2009 or beyond, Hale said. Meanwhile, the fund continues to fall, declining 25% in the 12 months ending April 30.
03-30-09, 01:59 PM 
Re: Bogus 401(k) - Any Advice? 
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