Tuesday, April 21, 2009

401k Mess

For anyone who missed it, there was a decent piece on 60 Minutes this past Sunday, regarding the fate of 401k investors over the last year:

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Again I theorize: Anything so heavily promoted by Wall Street as 401(k)s — and with such limited investment choices as most plans have — is pretty much bound to mediocrity ... or worse yet, outright failure.

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— Posted by Michael @ 8:30 AM


I lost my faith in IRAs and 401Ks some time ago. Most have limited ways to take an active role in managing the money invested. The money managers I have been exposed to are really nothing more than salesmen. I irritate the CFO at work by managing my own portfolio within the limited amount of funds available in our Simple IRA. With a trading limit of $1000.00, it is hard to keep the money in a fund that is performing and out of the downtrending funds. Luckily, I can always park the money in the money market fund when the whole market shows a decline. More people need to pay attention to what is going on in the markets. If they did, there would have been a lot less people losing everything last fall and winter.

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Thoughts on my personal finances, goals, experiences, motivations, and accomplishments (or lack thereof).

My financial life began turning around when I took responsibility for it.
— Dave Ramsey


Start (2005-12): ~$21,900
Currently: $0
[About Our Debt Paydown]


Savings Goal: $15,000
Currently: ~$15,115
[About Our Liquid Savings Goal]