NU Online News Service, March 13, 1:39 p.m. – The Charles Schwab Corp., San Francisco, is trying to turn the widely publicized problems with the 401(k) plan at Enron Corp., Houston, into a marketing opportunity.
The financial services firm is asking worried investors to come to it for a free “401(k) Checkup.”
The checkup includes a three-page report that reviews a consumer’s 401(k) plan and other retirement plans, discusses a consumer’s retirement goals and current investment strategy, and recommends any changes in asset allocations that Schwab says are needed to match the consumer’s investment strategy.
Schwab is distributing the checkup kit through its Web site, toll free telephone numbers and its 400 branch offices.
Schwab has also published the results of a telephone survey on the effects of the Enron collapse on 620 adults who have 401(k) plans at work.
Researchers found that 72% of the survey participants said they had changed their investment behavior as a direct result of Enron news.
Thirty-three percent of the participants say they now avoid companies they don’t understand.
Other popular strategies include doing more research (31%), diversifying more (27%), paying more attention to financial advisors (22%), and worrying more (15%).