401(K)s

Not all retirement plans and benefits are alike. Knowing you will have regular income during the 20 or 30 years after you stop working can make retirement something to look forward to rather than something to dread. The way a plan is structured and the kinds of benefits and options it provides will often determine the kind of income you can expect to receive. That is why it’s so vitally important to know which type of plan you’re in and what that ultimately means for your income over the long term.

The current economic slowdown has many economists expressing concern about how the trend will affect investors’ portfolios. Home builders are cutting their profit forecasts and consumer confidence last month fell to its lowest point since November 2005. Just this past week, the LABOR DEPARTMENT indicated labor costs in the 2^nd quarter rose at their fastest rate in almost 6 years.

It is imperative that investors adjust their portfolios to avoid taking a hit from an economic slowdown but it is also prudent not to overreact.

The brightside of the current economic climate is that U.S. companies have near record levels of CASH on hand to hold them over during an economic rough spot, and energy prices are starting to decline a bit from their recent highs.

Americans’ 401(k) retirement plans are starting to face scrutiny of a kind that previously helped to reshape the MUTUAL FUND business and many practices on WALL STREET.

A series of lawsuits has raised questions that longstanding business practices in the industry may represent illegal forms of collusion. Very little was published during 2007 as a follow up to the November 2006, Congressional Democrats call for hearings into whether current laws do enough to protect 401(k) investors. A November 2006 report by the CONGRESSIONAL GOVERNMENT ACCOUNTABILITY OFFICE (GAO) stated that some practices “may not be in the best interest of investors.”