Before and since the the fall of 2007 when the market started to go south I learned to manage my own employee sponsored 401k account . In doing so I took the time to go to my employers plan web site and read the information . You will get a wealth of information there that even a broker may be aware of but will not share with their clients . Fund managers can play a positive roll in multiple fields but 401k accounts are plans that should be treated as " savings accounts " for retirement and managed by participants themselves . Unfortunately until now the majority of us haven't been a nation of savers . Now that many people have been caught off guard due to the collapse of the housing and financial markets it is harder for them to sock away what they will need to retire comfortably but some savings is better than none at all . If your employers plan is web-based it should tell you how much ( by law ) that you can contribute each year . If you can sock away the maximum . With the volatility in the market these days you don't have to expose a lot of your money to see growth by saving more of your money . Before the tech bubble burst building a nice retirement portflio was a no-brainer for many people but with emloyers no longer funding their employees plans and cutting their matches the responsibility has shifted to us as employees ; we are responsible for our own retirement . Take advantage of your employers match ; that's free money on the table . Many participants of their plans have been mislead by the pros to believe that management of their account should be handled as " crap shoots " . That is wrong . Many of my co-workers who were to retire this year saw their accounts plunge 40% or more It's one thing to accumalate market gains ; it's another to know how to protect them against market downturns . With trading restrictions and hefty fees in place within 401k plans it's better to save more of your money ( in the stable value fund ) and select fund exposure carefully .
Your 401k account with ( if fortunate ) a defined pension and social security are the three financial vehicles we will need to get us through retirement . If you are 15 years or more from retirement ; time is on your side as far as saving your money and market risk . If you can max out your savings you can easily reach a 6 figure savings cushion in less than ten years . I did it myself . As I paid off my cc debt I built my retirement with money that was freed up . Today I will retire within 2 weeks . Along with the savings that I built I am one of the few that will enjoy help from a pension and paid healthcare . I'm not a millionare but my living expenses are low enough that I will be able to continue to save and enjoy retirement comfortably . Thanks for reading . Hopefully my information will help someone else in these trying times .
Jan Toussaint
of NE
@
Mar 29, 2009 12:37:14 PM
Voice of experience here....
Couple, both age 73+; retired since age 62. We had a mixed portfolio, but mostly CDs. Long term CDs didn't grow as fast as we would like, but they and interest are still intact. Mutual funds 403B/401K reduced to below purchase price after owning for 20 years; I-Bond purchased when limit was $30,000 each person are doing GREAT! Would love to own land, but that takes upkeep and taxes -- in Texas property taxes pay for education -- usually expensive.
btxusa
of TX
@
Mar 27, 2009 14:19:58 PM
401K is well known rip-off
The company I work for is like most in that the 401K funds available are limited and your ability to manage them are extreemly limited to once every 90 days. On top of that my employer picked the Broker that has the highest mutual fund management charges in the industry.
Like most my 401k is down by 55% which turns out to be below the cost level for the investment I made.
In my opinion none of those mutual fund managers are worth a nickle.
Dean
of OR
@
Mar 27, 2009 12:28:26 PM
Ho Boy
The problem is that banks and investment firms created something called derivatives. A speculative blurring of what is a real asset which has value and wishfull thinking. Without identifiable properties to which you can ascertain value you have toxic assets. I heard one estimate to be 1.4 quadrillion in total derivative funds. That is a lot of trillions. No wonder no one knows what to do. These As@h*le$ screw up the free markets with a fractional system no one can keep track of. Now they want to start over by reinflating the bubble.
My advice.... Buy land. Buy gold. Move out of the cities. Grow your own food.
Jeff
of WI
@
Mar 27, 2009 06:14:49 AM
your a genius kim
Sheesh, why didn't I think of any of this. Seriously you financial talking heads never cease to amaze. You sit here and spin your "buy and hold", your "diversify" and whatever else you sheep blaat out on a daily basis and think you're adding value.
I have news for you - no one knows. And you people are the most dangerous, the ones who think they do. Absolutely none of you can give accurate advice in this market, and pretending that you do is irresponsible at best and dangerous and liable at worst. What this market has shown us is that its a fixed game. Just look at the shenanigans GE pulled a couple of weeks back with their dividend.
Online savings accounts, long term CD's are the only way to go if you're over 45.
joe
of CT
@
Mar 25, 2009 14:51:07 PM
Good idea, Jerm
while we're at it, let's fix it so you can use tax-deferred 401(k) and IRA money to buy the land you're recommending.
Muser
of NM
@
Mar 25, 2009 13:32:25 PM
401k
you want a good tip. Take most of your money you are putting into a 401k and buy land. You can physically enjoy it and its not just a piece of paper in you hand that becomes worthless and makes someone else rich.
Jan Toussaint of NE @ Mar 29, 2009 12:37:14 PM
btxusa of TX @ Mar 27, 2009 14:19:58 PM
Dean of OR @ Mar 27, 2009 12:28:26 PM
Jeff of WI @ Mar 27, 2009 06:14:49 AM
joe of CT @ Mar 25, 2009 14:51:07 PM
Muser of NM @ Mar 25, 2009 13:32:25 PM
Jerm of AK @ Mar 25, 2009 11:14:55 AM
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