I don't know if any of you are aware of how badly the economic system has become when it comes to our ability to have a retirement plan for our futures, so I will begin this blog with talking about the people who have been putting their money into 401k plans.
I know that it probably sounded like a great way to make more money for your retirement portfolio before the housing market collapse, and the credit crunch started to be more noticeable, but having a 401k plan now is resulting in a loss of your hard earned money.
If you have been paying attention to the stock market over the past 6 months, you would have noticed that it has been slowly heading into a negative direction. The Dow stock, for instance, has lost more than it has gained within that same time period, and now Nasdaq and S&P stocks are also losing more than gaining.
Now what does this all mean? Well, a lot of it is caused from the stock market being in a bear market. Meaning that it has lost 20% of it's value since it's peak in October 2007.
Another problem with 401k's is that some of the employers did not invest their employees money where they wanted it to go, so now there are employees who are suing their employers over these wrong investments, and there are also fraud charges that are being dealt with in court as well.
With that said, I don't mean to discourage people who want to save toward their retirement, but 401ks are risky business in the first place because you are, after all, gambling with your own money.
Here is a video which may, or may not help you to become more aware about the bear market , so that you can decide for yourself whether or not the 401k plan is the right retirement plan for you.
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