Did Your 401(k) Lose More Money Than Your Peer's?

financial education

The results are clear, 401k holders have not been paying attention or educating themselves about saving, investing and finance. The number of folks that asked my advice quadrupled in 2008 and by early this year had been elevated to panic mode. At our ages, 57 and retired for me and the wife at 52 and retiring in 5 years, our retirement savings balance declined 16% last year and has recovered 10% of that loss in the first 5 months of this year. We are still saving 40% of gross income for retirement on an income of 90k per year. Needless to say, a number of our peers in our age and income group are asking me for advice after their own failures. The biggest problems? non diversification, inadequate savings rate, excessive consumption, poor planning for the future. It does no good to complain about government or your company retirement plan if you are not keeping your own savings in order.

john of WI @ Jun 04, 2009 09:41:13 AM

Where were these executives trained?

It seems to me that a certain level of management people went to the same school/university. What was their major? Bad Business Practices? What classes did the take? Greed 101? Stupidity 301? I have personally seen managers in the government who would qualify. I just thought private industry mostly avoided the real dummies.

George Boyer of NM @ May 31, 2009 08:26:50 AM

Retirement

Carroll,

That is our government in action for you. They gave what? 20 billion to GM???? A lot of good that did. Now Social Security will run out sooner than they calculated???? My 401(k) lost 40 percent last year due to the corporate knuckle heads in charge. The same knuckle heads my hard earned tax dollars bailed out. The more I see our government monkey around, the more I am glad I voted for Ralph Nader.

Mike Condon of TN @ May 28, 2009 14:52:28 PM