Why AOL's 401(k) Plan Matters to You

In this video from Monday's edition of Investor Beat, host Chris Hill and Motley Fool analysts Taylor Muckerman and Matt Argersinger dig into the biggest investing stories from the market today.

AOL (NYSE: AOL  ) CEO Tim Armstrong announced over the weekend that the company will reverse a recent change to its 401(k) plan. The company had recently shifted to giving employees a lump-sum contribution rather than matching throughout the year, a move that saves the company money but isn't beneficial for employees. Armstrong said that part of the change was due to "two distressed babies" in 2012, which cost the company about $1 million each. Armstrong has since apologized for the remark. In the lead story on today's Investor Beat, Matt and Taylor discuss the recent trend toward lump-sum contributions to 401(k) plans, why this is beneficial for companies, and why it isn't ideal for employees.

Saving for retirement?
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2833370, ~/Articles/ArticleHandler.aspx, 9/16/2014 3:38:34 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 17,148.15 117.01 0.69%
S&P 500 2,000.20 16.07 0.81%
NASD 4,555.97 37.07 0.82%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/16/2014 3:23 PM
^DJI $17147.81 Up +116.67 +0.69%
DOW JONES INDUSTRI… CAPS Rating: No stars
^GSPC $2000.00 Up +15.87 +0.80%
S&P 500 INDEX CAPS Rating: No stars
^IXIC $4555.99 Up +37.09 +0.82%
NASDAQ Composite… CAPS Rating: No stars
AOL $42.43 Up +0.15 +0.35%
AOL CAPS Rating: *

Advertisement