Gerri Willis at CNN warns readers that they should not stop investing in a 401(k) just because the market is doing poorly (like it has over the third quarter of this year). Her five points are don’t disengage, resist the makeover urge, pick winners, don’t fear bonds (though I’m fine without them as I’ve investing for the very long term), and put your retirement on autopilot.
You’ll hear some people disagreeing with the last point. Generally, the opposition comes from people who make their living off the fees generated by financial transactions. The author suggests “maturity funds” which automatically change their equity/bond balance depending on the years remaining until retirement.
Here is my current 401(k) breakdown, which includes a company match that I may not see if I leave this company before next May:
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