Toys ‘R’ Us Considers Closing All of Its U.S. Stores
March 15 (Reuters) – Iconic toy retailer Toys ‘R’ Us Inc will shutter or sell its stores in the United States after failing to find a buyer or reach a deal to restructure billions in debt, putting at risk about 30,000 jobs.
‘TRU’ Partnership Employees’ Savings and Profit Sharing Plan is a defined contribution plan with a profit-sharing component and 401k feature. This plan has a BrightScope Rating of 58.
For the average 401k participant, the 35 point difference between this plan’s BrightScope Rating (58) and the top rated plan (93) could equate to: 20 additional years of work and $233,142 in lost savings.
The plan’s administrator is Michael Short and is handled in Wayne, NJ and the recordkeeper is Fidelity.
One of the key concerns is that the plan only has 33 investment options.
Most 401k, Profit Sharing or ESOP plans do not have active management so there is no one guiding the plan’s investments. What this means is in the event of an economic downturn, there is no method for automatically moving your investments to a lower risk profile to protect your hard-earned savings.
With the WealthSentry system we participate in, retiree’s accounts are automatically re-balanced to lower risk portfolios in the event of a severe downturn. Learn more in our guide, 6 Critical Steps You Must Take Now.
For an in depth analysis of your options feel free to make an appointment, read one of our guides or participate in one of our workshops.
Wishing you the best.
Doug Reed, CRPC, AAMS