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Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Our 401k statements do not list anything you do not hold positions in.
Finding all 25 options for investments requires some serious digging, and info only available through web site. (or by calling the plan administrator). It gets really complicated with lifestyle funds, and funds tailored ONLY within our plan. That is why I stick to the basics so I can see their expense ratios, holdings, and turnover, and have something similar to weigh their performance. (Morningstar)
They are auto rolling our REIT into an international REIT, ... now that is scary !!
My 401k quarterly statement lists 35 investment options with the individual funds an employee chooses printed in Boldface type...
In addition it provides quarterly, ytd and average return for 1, 3, 5 and 10 years...
It's very easy to read...
I only have two complaints...
1. The funds are NOT identified by their Symbol... so it takes research to determine exactly what Franklin or Goldman Fund the employee actually has...
2. The Money Market Fixed Account is omitted... I think I can see why. Scanning the quarterly statement and seeing one investment option with a positive return of the 36 choices available might cause a stampede...
My preference is to payoff all debt before investing.
Can be good or bad IMO. My student loans are at 2.25% fixed for life. No sense paying those off when I make more in my MMA. Also to pay off my mortgage before my 401k isn't smart. I get a 1:1 9% company match. That means every dollar I put in I get a dollar up to 9% of my salary. Since my mortgage is nowhere near 9% I am better investing first IMO.
Can be good or bad IMO. My student loans are at 2.25% fixed for life. No sense paying those off when I make more in my MMA. Also to pay off my mortgage before my 401k isn't smart. I get a 1:1 9% company match. That means every dollar I put in I get a dollar up to 9% of my salary. Since my mortgage is nowhere near 9% I am better investing first IMO.
Hard to justify not taking advantage when your employer matches even a portion of what you put in...
Take advantage of it while you can... I thought I was with one of the few companies that no longer match... now I read more and more companies no longer offer matching funds
Yes I hear ya, we are told every day how much more expensive we are in comparison to the competition.
Gonna be hard to retire with no pension and no match, or maybe that's "the plan".
Personally I think we only need to look to China/India etc. with what to expect. How those folks live. We are going to be brought down to that level or close to it due to globalization.
I think when we look back at the last 25 years... we will see 401k's as an interim step companies used to wean the workforce from company defined benefit plans...
401k's were embraced by employers because they limited a firms unfunded liability and 401k's cost companies less than the traditional retirement plan it replaced...
Now that a generation of workers have transitioned to 401k's I'm afraid the current economy will be used as an excuse for business to get out of the retirement system all together... at least that's my take on what's happening right now...
The only people I know with terrific retirement plans are public employees... My neighbor was city manager at 2 cities in her career and she said the biggest pending financial crisis she faced is police and fire retirement, followed by the rest of the city's public workforce... The amount of money is staggering and the benefits exist almost no where else...
Please someone tell me why I could and should continue to invest 10-15% of my in my company 401K as it's continuing to rack up losses far greater than any company match. At this point I'm hovering close to my account balance I had in late 2006. Two years of investments are gone... and I could seriously use the money I contribute weekly to help pay down some debt. Other than the tax benefits is there really a downside to not contributing for a few months?
Long term reality... how much am I really missing out if I decide to not contribute short term... for the first half of 2009.
What if I told you that I can double your money in ten years, and guarantee your principal? However you have to keep it there for the whole ten years to see the benefit?
This product does exist, and it does have some liquidity such as a 10% free yearly withdrawal option.
In a typical economy I would not advise younger clients, who are in their accumulation period, to invest in such a product because you can make more than 7.2% in the long term.
However, ask yourself how long do you think it will take this economy to recover the losses and actually get you back to your 2006 numbers?
The only barrier to rolling over your 401k is your employer, and some do allow in-service withdrawals. Check with your HR dept, and ask.
Once the 10 years is over, and your money is doubled, you can then put it back on the market after we have hopefully climbed out of the worst economic recession since the great depression.
BTW This product is offered by a large highly rated insurance company, and is called a Indexed Annuity.
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