to get a BETA code for our new account aggregator when it becomes availiable!
Positioning your 401k or IRA for a Volatile Market
As I write this, the 2009 Stock Market is not looking to make any new friends in the 401k and IRA community. The DJIA is hovering right around 8000, and it looks like this recession is going to last longer than anticipated. Some pundits have said that it could be 2011 to see all of the economic stimulus finally work. We had the biggest Inauguration market drop in history when Barack Obama took the oath of office.
In the meantime, many investors are wondering, “What should I do during these difficult market times?” Many are even afraid to open their 401k statements for fear of the paper losses on hand.
Asset Allocation is a must for your 401k or IRA
I can’t stress enough that a proper asset allocation is vital for your 401k or other retirement plan. This limits your downside in volitale markets, and helps to position your 401k to rebound when the market decides that it doesn’t want to be in the 8000 range any longer. Here is a quote from the Washington Post that I found extremely troubling.
“A Washington Post piece today about Bernard Madoff says an AllianceBernstein survey showed nearly 40% of investors without an advisor didn’t have an approach for allocating and rebalancinginvestments. Some 55% of those people reported they never got around to doing it!
Most startling: 70% of investors, including those with an adviser, said they’re prone to change their hairstyle more frequently than rebalance their portfolios!”
Your 401k or IRA is not going to benefit from sticking your head in the sand. A smart investor MUST identify the funds that are not performing well and get rid of them. This helps you to MAKE MORE MONEY in the long term. Please feel free to use eRollover’s free asset allocator to review and set up your portfolio by clicking here.
Pretty amazing stats and fodder. eRollover’s account aggregator is coming very soon, and will it be simple enough to use eRollover for many of these 401k and Retirement needs. Make sure that you sign up today to become a Beta tester when this feature becomes available. After all, we want to provide you with the tools to “Help you achieve your Retirement Dream!”
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