Capsule: Stace Hilbrant, 401k Advisors LLC

"Most of the bad economic news that can possibly happen has already happened."
JAN 04, 2009
STACE HILBRANT Managing director 401k Advisors LLC Wilmette, Ill. Assets under management: $750 million Forecast: "Most of the bad economic news that can possibly happen has already happened." Mr. Hilbrant, who consults with 401(k) plan sponsors, said he imagines that there will be more class actions against plan sponsors in 2009 because participants saw their 401(k) balances fall dramatically. "These lawsuits will be directed at plan sponsors because participants are down 30% or 40%. So there will be a stronger awareness of employers' fiduciary liability and a greater awareness of how to mitigate liabilities," he said. Mr. Hilbrant believes that participants in 401(k) plans will continue to tighten their budgets and try to focus on cutting expenses. "Everyone's taking such a beating in the market. Most people will say, 'I'm not going through that again.'" The 2009 finish line: The Dow: 12,000 The Nasdaq: 2,000 The S&P 500: 1,100 Tip sheet: Favorite investment: A properly diversified aggressive portfolio. No asset class can work on its own. Favorite sector: Financials, because at this point they are so deeply discounted. Next big thing: The use of alternative options in 401(k) plans. Biggest concern: That there will be no growth in the Dow Jones Industrial Average. That will have a negative impact on 401(k) participants' behavior. Reading, watching, listening to: Book: "The Snowball: Warren Buffett and the Business of Life" by Alice Schroeder (Bantam Dell, 2008). TV: Food Network, "The O'Reilly Factor," Discovery Channel. Music: Country. Websites: wsj.com, chicagotribune.com. Primary news sources: The Wall Street Journal, Chicago Tribune, Crain Communications Inc.

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