Products March 15, 2008

New Firm Enters Individual 401(k) Market

A new firm that focuses on the entrepreneurial company’s need for impartial advice on retirement planning has entered the market.
Reported by

In a news release, 401K Bootstrap says its goal is to help the entrepreneur make rational business decisions in using a retirement plan to bootstrap his business to success. 401K Bootstrap will help the entrepreneur evaluate the risks and potential of using retirement funds to fund the business, the news release said. In addition, 401K Bootstrap will model the regular 401(k) and Roth 401(k) options to let the owner select the plan best for his unique situation.

The firm’s mission is to give the small business owner the information needed to make an informed business decision in selecting the best retirement plan for the company. The concept of the firm was born when it was discovered that good information for retirement plans for the small company is hard to find. In its research the company found inaccurate, misleading, outdated, and missing information about the SOLO 401(k) plan.

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The firm explains that the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) established a plan for small business owners, the SOLO 401(k) plan, and the company owner can use the plan to save substantial sums for retirement, manage net income, attract employees, and use retirement funds as part of capital investment.

401K Bootstrap does not provide tax, legal, or investment advice and does not provide actuarial evaluations for defined benefit pension plans.

For additional information, contact Gary Canant at 913-548-7263 or go to http://401kbootstrap.com/.

Compliance March 15, 2008

Bear’s Ills Draw Company Stock "Investigation"

It didn’t take long for the news from Bear Stearns to draw the attention of the plaintiffs’ bar.
Reported by

The law firm of Stember Feinstein Doyle & Payne, LLC has announced it is investigating possible illegal conduct relating to the Bear Stearns Companies Inc. Employee Stock Ownership Plan, Profit Sharing Plan and Deferred Compensation Plan.

According to a press release, the firm’s investigation relates to “whether certain fiduciaries of the Plans knew or should have known that Bear Stearns was concealing its large exposure to highly risky Collateralized Debt Obligations, subprime mortgages, and other poor-quality securities, which has rendered Bear Stearns common stock and certain funds that it manages and offers as a risky investment for Plan participants.”

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Specifically, the firm said it was investigating whether Bear Stearns breached its fiduciary obligations under ERISA:

  • by continuing to offer Bear Stearns common stock and mutual funds as an investment option for participant contributions when it was imprudent to do so; and
  • by failing to take action to sell Bear Stearns stock and mutual funds or otherwise protect the plans’ assets in light of the company’s risky business strategies and deteriorating financial conditions

The firm said that Ellen M. Doyle of Stember Feinstein Doyle & Payne has been appointed class counsel to represent numerous classes of ERISA plan participants and has served as lead or co-lead counsel in actions recovering more than $100 million for pension plans and their participants.

The press release goes on to suggest that participants (literally those who have an individual account) in any of the three plans may have a claim, and suggests they contact the firm.

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