Best 401(k) Rankings: ConocoPhillips Tops Facebook

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July 22 (Bloomberg) -- Bloomberg’s Peggy Collins ranks 401(k) plans on “Bloomberg Surveillance.” (Source: Bloomberg)

$75,000 a year and thanks to its top ranked 401(k) matching program, you will retire at xd 60 $3.8 million in savings.

-- at $60.8 million in savings.

Aggie, i am blown away.

Everyone should read this.

It is important.

What makes conoco's lancet so effective?

Not only are they giving a high match, but they are matching people 9% if you put in only one thing percent of your pay, but they are also taking an additional contributions no matter what you put into the plan of 6% to 90%. we found a number of companies we ranked as top 250 and the s&p are actually taking and in addition to the match, and i can really help people.

Is that a 9-1 match?

One dollar pretax money and conoco puts in nine dollars?

Exactly, adam.

Companies have historically guarded very closely their 401(k) plans.

It is difficult for people to find information and compare companies because the filings are hard to go through, they read like a tax report, and companies guard their plans very closely.

But we did realize in doing this study that a number of companies are doing what i call frontloading it, like conoco phillips, they will give you 9-to-1. visa will give you 2-to-1. where is the average plan in terms of the match?

The industry averages are about 3%. a lot of companies will say if you get 6%, we will give 3%, but most of the companies that top-ranked in our company are way above that.

Some companies are getting up to 70%, again conical getting 9%, a number of companies giving 6%, and a number kicking in at the end of the year no matter what you put in.

And amazon and facebook are way low on the list.

What is going on there?

A number of the tech companies are lagging for two reasons.

One of them -- some like amazon, you put into 4%, they put in 2%, and also making you invested three years before you can leave with getting all of your money.

401k used to be a supplemental way for people to put aside money for retirement.

It has kind of overtaken the defined benefit plan.

Legislation and regulation have kind of fallen off by the wayside, too.

The, one of the things we try to do and are hoping people can gain from this transference he is exactly that.

Give people more information because now most companies have shifted away from pensions to 401(k)s, but again, it is hard for people to compare them, so it is something that is becoming more and more important.

It is rising like health care when you go to look for a job.

This study is nothing short of phenomenal.

Adam, you mentioned $3 million for the young buck that actually does the right thing you?

On a salary of $75,000 over 35 years, $3.8 million.

Peggy, you know this, i am 42, i have done nothing.

I go in and make 7%, and that is a $10,000 contribution, i come up with almost $690,000 on my own.

That match is critical within the calculus of adding another 309 thousand dollars to get me up to almost $1 million because like the rest of america, jeff, i screwed up and started late.

I want to bring in one other idea, peggy.

We talk about match, but let's also talk about asset allocation.

What have you seen in terms of that?

It is difficult to find the investments that companies are providing their plans, and they make intentional choices when they do the funds that are in there, but we are seeing a rise of index funds in 401(k) plans and target dates, which can be actively or passively managed.

We did see a number of companies in the ranking are offering at least one type of stock, bond, an international fund, and we tried to point that out because that is the way people can create their own low-cost performance.

Peggy collins, thank you for the wake-up call.

Please, everyone read it online.

This text has been automatically generated. It may not be 100% accurate.


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