401K Plan Participants Suffer Historic Losses
Are Devastated As A Result Of Economic Events: Website Designed
to Guide Individuals As They Attempt To Save For Retirement in
on: June 11, 2009, 5:36 am
Author: Leonard M. Rhoades
savings have dwindled significantly over the past 18 months.
The median rate of return on 401k balances was negative 28.3%
in 2008 according to a study by human-resources consulting firm
Hewitt Associates. The average 401k balance dropped from $79,600
at year-end 2007 to $57,200 at the close of 2008.
the 12 months following the stock market’s peak in October
2007, more that $1 trillion worth of stock value held in 401ks
and other “defined-contribution” plans was wiped out,
according to the Boston College research center.
Weir, who turns 60 this month, showed 60 Minutes his latest 401(k)
statement, which he hadn't had the courage to open up. "I'm
afraid," he told correspondent Steve Kroft. There's good
reason for his trepidation: nearly half of his life savings have
vanished in a matter of months. "It went down again,"
Weir told Kroft after opening the statement. Overall, he said
he was down about $140,000.
Another woman in a similar situation told Kroft her 401(k) was
worth less now than it was in 2005. "And another one went
down almost $40,000. One was 80 - 88,000. And then, and then it
went down to 50(k)," she told Kroft, crying. The saddest
part of this story is that it is being repeated all over the country.
eastern Pennsylvania, 59-year-old Iris Hontz lost her accounting
job and half of her 401(k) investments.
Wall Street executives, American families don’t have a golden
parachute to fall back on,” said U.S. Rep. George Miller
is a site designed to assist the Individual in their noble attempt
to save for retirement. How does it guide investors? The number
one problem investors have while saving for retirement is the
potential of suffering devastating losses of 30% or more in stock
mutual funds. The ideology of just “buy and hold,”
“invest for the long term” only work a small percentage
of the time. In addition to the latter problem, 80%-90% of the
mutual funds offered within these retirement
vehicles are more risky than the benchmark or index they follow.
It’s about time someone stepped in to assist Americans with
their retirement accounts rather than leaving them helpless and
alone. The indicators used within the site are designed to give
individuals a sneak peek into the economy and the financial markets.
Is it safe to be invested fully? Should I take some off the table
and be only partially invested? These are questions everyone has
and generally know the answers to, but need someone to help reinforce
that decision. The indicators are updated every 1st business day
of each week and an email is sent to each subscriber alerting
them of any changes, as well as a brief commentary on the financial
markets. Investing smart bodes well for those who understand,
“It’s just best to sit on the sidelines and watch
the fireworks at times.”
you would like more information about this topic, or to schedule
an interview with Leonard M. Rhoades, please call Andrea Rhoades
at 616-581-5696 or email firstname.lastname@example.org