401k Advisor – Update For Retirement Plans

Lee Smith, Consultant – a 401k Advisor licensed business is issuing guidance for accounts that want to maintain their earnings for the next 5 years. The stock market has recovered from the recession that began in 2007. From the beginning of 2007, retirement accounts are still down 20% but up 14% since last year.

It may take 2 more years before mutual funds break even to cover the losses from the last couple of years. By having the right mix of funds, investors can avoid the down sides of the market. The correct allocation of mutual funds is to have 25% in small, medium, large and international funds.

The reason for this is because when the stock market goes up or down, all types of funds follow regardless of the type of fund. When the market is at a one year low, investors of mutual funds should transfer to money market funds. Doing this would have saved at least 40% in 401k retirement accounts in 2007 to 2008 and 2001 to 2002.

April Catalla, who has inquired about an Annuity Policy says, “if I invest every month for my future, how can I be sure when I retire that the money will still be there?”

The answer is to first understand the funds in a retirement account, then use an experienced 401k Planner that can explain how the stock market works. As daunting as it is to understand the complexities of 401k Plans and the stock market, it is necessary to take the first step in contacting a online financial advisor.