27 Oct 11 We are currently in a secular bear market.

Their retirement and financial plans usually use an assumption of an 8% average annual rate of return. (Source: ) This has left many, especially the baby boomers, scratching their head –wondering if their retirement dreams will not come true.

Many baby boomers will have to figure out an alternative means to retirement. Other than choosing the plan and funds to be included, most employers do not offer any assistance. If the stock markets continue to provide a rate of return less than expected.

Inflation during this period has averaged 2.7% per year. With two back to back economic bubbles popping since 2000, this one may last longer. Many individuals who are saving for retirement in their 401K plans have been disappointed by the rate of return they have received.

This will have a major impact on the retirement of the baby boomer generation. They now need to play catch up due to the performance of the market since 2000. Investors need to become more educated about the history of the markets. Since 2000 to the end of 2007, the S&P 500 index has returned an annual average of only 2.45%.

These plans have mostly been self directed by the employee. The last one lasted 17 years. This does not include the year to date loses investors have experienced in 2008.

Tags: 401k plan

26 Oct 11 The last one lasted 17 years.

This does not include the year to date loses investors have experienced in 2008. Many baby boomers will have to figure out an alternative means to retirement.

Other than choosing the plan and funds to be included, most employers do not offer any assistance. (Source: ) This has left many, especially the baby boomers, scratching their head –wondering if their retirement dreams will not come true.

Inflation during this period has averaged 2.7% per year. They now need to play catch up due to the performance of the market since 2000.

This will have a major impact on the retirement of the baby boomer generation. Since 2000 to the end of 2007, the S&P 500 index has returned an annual average of only 2.45%.

These plans have mostly been self directed by the employee. We are currently in a secular bear market.

Investors need to become more educated about the history of the markets. Their retirement and financial plans usually use an assumption of an 8% average annual rate of return. If the stock markets continue to provide a rate of return less than expected. With two back to back economic bubbles popping since 2000, this one may last longer.

Tags: 401k plan

26 Oct 11 Congratulations to you.

Be proud of yourself for taking that first step. Blend industries or foreign/domestic choices. A good rule of thumb is that if you are younger, you can generally carry more risk because you have the time to wait out any market. Mix and match stock and bond investments.

If you are somebody who is already somehow investing in company stock, it may not be a good idea to purchase additional company stock through your 401K plan. If you are approaching retirement, you may wish for a more conservative blend of assets. Check out employee stock. But – if you are like the majority of Americans, you take a look at the selection of investment choices and all of a sudden, you are lost! Some companies match their employee’s contribution by giving out their own stock.

You have signed up for your employer’s 401K plan and are very proud of yourself because you are not only getting tax benefits, but your employer matches a portion of your investment (can you say free money?). One of the main goals of a 401K plan is to provide financial stability for you in the future, which means having a well-proportioned investment strategy. You have taken the first step to becoming an investor and building your portfolio for a wealthier life. Here are a few tips on how to best diversify investments in your company-sponsored 401K plan, even if you are a complete newbie to the investment scene.

Words like an aggressive growth mean a higher risk, but also a chance for higher returns; while words like stable or income usually indicate a more conservative investment. Make sure your company stock does not overwhelm your portfolio. These tips should help you diversify investments in your 401k plan. Other companies may give stock options. Do not be afraid to mix and match. Check out the information related to how the investment is rated. Look at your investment choices and start to blend.

Tags: 401k plan

26 Oct 11 Other companies may give stock options.

Look at your investment choices and start to blend. Blend industries or foreign/domestic choices. Words like an aggressive growth mean a higher risk, but also a chance for higher returns; while words like stable or income usually indicate a more conservative investment. You have signed up for your employer’s 401K plan and are very proud of yourself because you are not only getting tax benefits, but your employer matches a portion of your investment (can you say free money?).

Check out employee stock. Blend large-cap and small-cap funds. The goal of an investment portfolio is to become diversified, so review your choices and use the information given to you to create a great mix and match end result. If you are approaching retirement, you may wish for a more conservative blend of assets. Do not be afraid to mix and match. A good rule of thumb is that if you are younger, you can generally carry more risk because you have the time to wait out any market. Some companies match their employee’s contribution by giving out their own stock.

One of the main goals of a 401K plan is to provide financial stability for you in the future, which means having a well-proportioned investment strategy. Many financial companies have risk tolerance quizzes and assessment tools and these may be extremely helpful to help you understand just how much risk you are willing to take on. Check out the information related to how the investment is rated.

You have taken the first step to becoming an investor and building your portfolio for a wealthier life. Here are a few tips on how to best diversify investments in your company-sponsored 401K plan, even if you are a complete newbie to the investment scene. Make sure your company stock does not overwhelm your portfolio. Be proud of yourself for taking that first step. Mix and match stock and bond investments. These tips should help you diversify investments in your 401k plan. If you are somebody who is already somehow investing in company stock, it may not be a good idea to purchase additional company stock through your 401K plan.

Tags: 401k plan

25 Oct 11 Be proud of yourself for taking that first step.

The goal of an investment portfolio is to become diversified, so review your choices and use the information given to you to create a great mix and match end result. Check out employee stock. Blend large-cap and small-cap funds. Here are a few tips on how to best diversify investments in your company-sponsored 401K plan, even if you are a complete newbie to the investment scene. Words like an aggressive growth mean a higher risk, but also a chance for higher returns; while words like stable or income usually indicate a more conservative investment. Make sure your company stock does not overwhelm your portfolio. Congratulations to you. Check out the information related to how the investment is rated.

You have signed up for your employer’s 401K plan and are very proud of yourself because you are not only getting tax benefits, but your employer matches a portion of your investment (can you say free money?). Look at your investment choices and start to blend. But – if you are like the majority of Americans, you take a look at the selection of investment choices and all of a sudden, you are lost! Other companies may give stock options. Many financial companies have risk tolerance quizzes and assessment tools and these may be extremely helpful to help you understand just how much risk you are willing to take on. These tips should help you diversify investments in your 401k plan. You have taken the first step to becoming an investor and building your portfolio for a wealthier life. A good rule of thumb is that if you are younger, you can generally carry more risk because you have the time to wait out any market. Some companies match their employee’s contribution by giving out their own stock. Mix and match stock and bond investments. Do not be afraid to mix and match. One of the main goals of a 401K plan is to provide financial stability for you in the future, which means having a well-proportioned investment strategy.

Tags: 401k plan