Today's economic conditions seem to create more questions than answers.
Yet the fact remains - we need to continue to save (and invest) in order to retire with dignity.
Dave Kansas makes a good point in a recent article "What Do I Do Now?" (Wall Street Journal - April 10, 2009) http://www.marketwatch.com/News/Story/do-do-now/story.aspx?guid=%7BE341FAB9-B0EC-4310-8E19-E03CE63FB7E4%7D when he quotes the author, Rudyard Kipling. "Keep your head about you as everyone is losing theirs."
That is what many good advisors tell you, although it is easy to say....and hard to do.
Another problem is that company retirement plans have become increasingly complex. Features such as online investing and elections, and mulitiple fund choices were designed for convenience, but actually may cause people to become "accidental " investors, which leads to confusion and inconsistent results.
This can present a problem for businesses who have a Fiduciary Responsibility to their employees to provide the highest quality investments and proper education on how to invest, why to invest, and how much to invest - at a reasonable cost.
Alliance Bernstein did a study recently http://www.deanvoelker.com/files/ab401kreview.pdf.
They found that both plan sponsors and participants want to "keep it simple".
Plan sponsors must review their plans on a regular basis. They need to make sure they are working with a professional who can meet with employees regularly and "keep it simple."
A strategy must be put in place to make sure you are saving enough.
http://www.helpmy401k.us/investment-tools.htm Please use the 401(k) calculator to see if you are on track for your goals.
Employees should also ask their plan sponsor about how funds are selected. There needs to be enough selection to be diversified, but not so much that it is overwhelming.
"Keep your head about you while everyone else is losing theirs." (Kipling)
"Be fearful when others are greedy, and greedy when others are fearful." (Buffett)
Please contact me at www.deanvoelker.com for more information.