Saturday, October 31, 2009, PM | Leave Comment
Time magazine online has a humongous – a 5-page description of 401(k) retirement plan – article on the topic of “Why It’s Time to Retire the 401(k)” written by Stephen Gandel dated Friday, Oct. 09, 2009. The author has talked about the plan starting from its inception 30 years ago to the present time. The basic thrust of the article is the writer points out many of the flaws of the 401(k) and argues that for many people it is doing more harm than good.
Other financial experts suggest that 401(k) retirement plan should be considered as one entity among a variety of other plans. Stephen Gandel gives examples of folks who have lost a big chunk of their stock portfolio in recent years. But that can happen in any plan, not necessarily 401(k). We all have seen the stock market took a big hit in the previous couple of years but it has rebounded quite a bit.
Granted many who were about to retire or are already in retirement have been hit hard because their chances to come back to profitable returns are a lot less than the more younger folks. However, the same experts suggest, if you have a well-balanced portfolio not only for retirement but for non-retirement accounts as well, there is no reason why at any age you should not come out ahead.
Moral of the story
Like the old adage goes, putting all your eggs in one basket will not get you too far. Therefore, you should take an active role in rebuilding your portfolio, keep an eye on it, watch it and be aware of it frequently and on a constant basis.
Read the full story “Why It’s Time to Retire the 401(k)“.
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