401(k) Retirement Plans
How to manage your retirement funds in today's economic climate!

Few Americans have avoided the past few years of investment losses because of the strange times we have experienced. The recession was taking its toll before 2000 and the stock market losses began March of 2000 and have continued. Then on September 11, 2001 the terrorist attack on the World Trade Center in New York hit with shocking devastation and deeply compounded the decline in stock market investments, including employee 401(k) savings. Next the Anthrax attack impacted the market and then to top it all off, accounting scandals hammered investor confidence. Combined, all these factors has hammered the stock market well beyond forecaster's expectations. As you consider the current market volatility, what should you do to provide the opportunity for growth and safety of your retirement plan saving?

There are true and tested financial rules employees of 401(k) owners should always apply when managing retirement funds. The only exception to these rules if you are an avid student of investments and spend a lot of time analyzing investment opportunities as a hobby and really understand economics. However, most of us do not have the time to invest in becoming an investment expert because our lifestyle choices do not include pouring over economics and financials. So, here is what the average American should do to continue growing their retirement next egg.

The following principles are true and tested over time. Apply these nine money management principles and, baring further terror attacks or economic crashes world wide, you can be assured of safety and the opportunity of long-term growth.

1. The younger you are the more long-term risk you can take when investing.

2. The closer to retirement you are, the less risk you should take because you are using up your time horizon to grow retirement funds.

3. When interest rates are low, long-term bonds become a major risk because as interest rates begin an upward trend, long-term bonds decline in yield.

4. Diversify, diversify, diversify - the old saying that you should not put all your eggs in one basket is just as true as it ever was in the past. Review all your investment choices and based upon your age, diversify your asset mix well.

5. Buy stocks when "blood is running in the street" as Doug Casey, the author of The International Man wrote years ago. In other words, buy when everyone is afraid to buy.

6. When the stock market is in a decline switch funds to cash accounts, short-term bonds and treasuries and protect your funds. The problem with getting in and out of investments in a 401(k) is making the decision "when to get in and out" of the various investments. The market can fool even the best of experts.

7. Always, always save and invest personally so that you have the "three legs of your financial retirement stool" in place. It is absolutely essential that you have Social Security and employee retirement plans - (whether company sponsored or you have a voluntary retirement savings plan). The third important leg of your financial plan is to have your own private savings plan. Without all three sources of retirement income, you may face financial bankruptcy if you live to age 100!

8. Seek the advice of more than one advisor. Never, never place your retirement future in the hands of one advisor. You will be the one that has to live with the results and no advisor has all the answers. Listen to your company benefits advisors and also seek outside advice. Neither your employer nor the advisor will have to live with the results of your retirement plan. Only you will live with what you decide to do regarding retirement and that older person you will someday become!

Finally, invest time to attend financial education programs and learn some basic rules of retirement planning. Set your goals now regarding how much you want saved to retire successfully. Contact us by filling out the retirement planning brochure form included in the Directory on the home page of this web site and ask for a retirement income computerized report to assist you in planning ahead. Ask for a retirement income computer analysis that will tell you if you are on track with your 401(k), Social Security or public retirement income and personal savings plan. There is no cost and both these analysis programs will serve as a "check-up" to help you toward reaching your retirement goals.

Warning, if you do not plan at least annually regarding your retirement planning, you may end up a statistic in later years. It takes time to save and it takes time for investments to grow. Whether you are young and time is your "friend" or your are nearing retirement, you cannot plan too much. You need to know how much you need to save and have a consistent plan to do so and you need to know how much a given amount of retirement savings will produce in monthly retirement income.

Take advantage of this retirement planning service and use the valuable resources provided through your employer or organization's benefit program provided through this "FINANCIAL LEARNING CENTER." There is not cost or obligation to take advantage of the free services provided as a benefit to you by your sponsor.

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