FacebookTwitterLinkedInFeed

Your 401(k) Future: Stay the Course or Make a Change?

Posted on Sep 07, 2011 by  in 401(k) Retirement Planning, In the News, Retirement Readiness

“Without 401(k), it would be worse,” said David Wray of Profit Sharing/401(k) Council of America (PSCA). Wray is right on target for responding to those who blame the 401(k) for the recent stock market drama. The 401(k) has never been the problem – it is actually the best solution for those looking to be retirement ready.

Wray points out the fact that 401(k) participants do not disappear simply because of dips in the market. “They were buyers after 9/11, they were buyers in 2009. They are buyers today,” said Wray. “They were holders after 9/11, they were holders in 2009, they are holders today. Their buy and hold behavior augmented by dollar cost averaging has not only benefited them through over a decade of wild economic swings, it has cushioned market declines.”

If you have questions about your money, talk to a financial planner before making any final decisions.

If you happen to be one of the many people with a 401(k) plan and are questioning whether or not you should make changes due to the market, be patient. Before making any sudden decisions, talk to a financial planner. Having a professional opinion can help guide you and your investments in the right direction, while giving you peace of mind.

Market fluctuation is inevitable. The best thing you can do is seek a professional opinion and gather all of the facts to avoid making any impulsive decisions.

Do you agree with Wray on his recommendation to “stay the course” when it comes to your 401(k) plan?

Leave a Reply

Recent Blog Entries
    Fiduciary Focus: Tibble v. Edison International and the U.S. Department of Labor’s Proposed Fiduciary Investment Advice Rules
    Fiduciary, a term that is rarely used in everyday conversation, has been garnering a lot of attention in Washington, D.C. as of late. While fiduciary status has long been an important issue to retirement plan sponsors and service providers, with all three branches of government weighing in on fiduciary issues, now is a good time
    New IRS Guidance on Accepting Rollover Contributions
    Qualified retirement plans can generally accept rollovers that were distributed from other eligible retirement plans such as another 401(k) plan, 403(b) plan, governmental 457(b) plan, or IRA. However, certain distributions such as required minimum distributions, hardship distributions, and distributions from an inherited or Roth IRA cannot be rolled into a qualified plan. Prior to accepting
    Safe Harbor Contributions: Changes to Mid-Year Suspension Rules
    The IRS released new regulations in November of last year that changed the rules for suspending safe harbor contributions during the middle of the plan year.  In general, employers cannot make changes that affect the safe harbor contribution during the plan year; such changes must be made before the beginning of the plan year in
    Reaction to the PBS Frontline show “The Retirement Gamble”
    I dutifully watched the PBS Frontline report “The Retirement Gamble” last night.  I am a regular PBS viewer and I know that Frontline is a reliable source for good information, so it was with some trepidation that I anticipated the airing of this particular episode.  I say this because the advance reports on the show
    Impact of Fee Disclosure: A success, a failure, or too soon to tell?
    Over the last several years, retirement plan sponsors and their service providers have spent a lot of time preparing to comply with the DOL’s participant and service provider disclosure rules that became effective in 2012.  Now that the rules have been effective for the better part of a year, many of us in the retirement