Big Money Moves: Chasing 401(k) Fund Accounts
Download MP3 Importance of the 401k Fund Market
- BlackRock, one of the largest fund managers, is buying a stake in a 401k startup that helps small businesses.
- The 401k is one of the largest holders of consumer wealth, second only to real estate (your primary residence).
- It's a tax-advantaged fund, making it a significant asset for many individuals.
Growth Opportunity for Small Businesses
- Small businesses, until recently, did not offer 401k plans to employees. This is now a growing market.
- There are more small businesses than large businesses, making them a ripe market for growth.
- Large companies, including Fortune 500, have been offering 401ks for years, but the number of these companies is limited.
Why Big Financial Players Are Taking Note
- BlackRock sees the potential in this emerging market and is strategically investing in a company that offers 401k services to small businesses.
- Small businesses represent a new source of income and a growing market for financial services.
