Retirement Reform Blog

Here we go again.  Panic in the stock market has set in, yet again, due to every direct or indirect domestic or international incident known to man.   Maybe Greece.   Maybe Senate-passed financial regulations.  Maybe unemployment.  Maybe somebody pressed the wrong button on their computer.  Or maybe somebody sneezed. Read the rest of this entry »

It’s about time…the good news about 401(k)s has finally surfaced, thanks to an article from the Wall Street Journal.   After all the hand-wringing over 401(k) balances that took a tumble last fall, and ideas proposed by some in Congress over what to do about it (mainly nanny-state schemes of allowing the government to manage retirement accounts), it has been noticed that balances are bouncing back.   (Thank you to WSJ’s Karen Blumenthal) Read the rest of this entry »

A recent article on Forbes online discusses the benefits of "pensionizing" one's 401(k) as a way to dam up the flood of money leaching from the ever downward-spiraling market:

"Seeing how well most 401(k) plans have done in the past year, the answer still seems to be that for many, added flexibility is no replacement for steady, guaranteed returns. But those days are long gone for many. But that doesn't mean that even in a down market that you can't try to trim your losses. How? Do like the pensions do and re-balance your portfolio ever six months or so, selling off your winners and bumping up your losers. This way you're always selling high and buying when things are cheap. "The only way that the investor is going to be able to respond accordingly is if they are aware of what is happening in their portfolio," says Roseman."

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An interesting article appeared in the Wall Street Journal entitled, "What Do I Do Now?"  The article lists five Do's and 5 Don'ts to help readers keep their heads during the recession.  Similarly, the NCPA released a study two weeks earlier called "Ten Ways To Wreck Your Retirement" giving the same sort of recommendations.

"Don't stop saving" seems to be the name of the game when it comes to staying on top of the downward slope.  Of course, this goes along with other practices as well, such as reigning in excess spending, living within your means, taking advantage of employer's matching funds and staying in the market if you're already in so that you don't incur more losses by selling off your stocks.  Whether or not the bottom is near, the advice echoing from all corners of the financial sector is the same: Protect your retirement– don't stop saving!

See NCPA Senior Policy Analyst discuss, "Ten Ways to Wreck Your Retirement."

To readers who are having misgivings about the stock market, the bond market, your 401(k) or IRA accounts and retirement savings in general:  Take a look at the new NCPA policy report, "Ten Ways to Wreck Your Retirement."  While some of the ways seem obvious, the recent economic turmoil have left some savers tossing common sense out the window.  So think carefully before you cash out and stick your money under the mattress or invest in ostrich farms of dubious value (remember those from the 1980s?).

Whether because of his slow, steady pace or the big hard shell on his back, the turtle is a reptile we should all consider emulating during a market downturn.  This economic landslide in particular has caused hysteria among investors looking to build their retirement nest eggs and has prompted many to leave the market all together opting for the cookie jar or the sock under the mattress instead. The prolonged contraction we are facing has many wondering whether or not we’ve even hit the bottom yet.  But take heart! The clouds will soon break.  It’s all in the approach.

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When it comes to your 401(k) the age-old adage to think long-term still applies. A recent article from the Dallas Morning News cautions workers not to change their retirement plans just because of the recession. Consider this advice before making drastic decisions: 

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