The USA Today published an interesting discussion related to 401(k)s, retirement, and the swings of the stock market. Employers are moving away from pension funded retirement toward 401(k)s. This article discusses the implications this has for the individual retiree and contains links to other stories that provide helpful retirement tips for those whose retirement will predominately 401(k) driven.
http://www.usatoday.com/money/perfi/retirement/2010-04-30-401k28_CV_N.htm
When employers first rolled out 401(k) savings plans, the message was clear: Take control of your own retirement destiny. Invest your money as you see fit. Choose from among many different options.Now, more than a year after the worst bear market since the Depression, 401(k) accounts are close to being where they were at the peak of the market in 2007 — thanks in large part to workers’ own contributions. But the bear market and recession have also realized some of the shortcomings of a 401(k) plan. The markets can slash even a conservative portfolio in half. Companies can stop or reduce their matches. And a plan with a low participation rate can put tough limits on how much you can save.
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