Reuters: Workers cautious about 401(k) investment

[marmar]

via Yahoo!:



Workers cautious about 401(k) investment: study


NEW YORK (Reuters) – Workers are increasingly cautious about investing in corporate retirement funds, having shifted money out of stocks, reduced how much they contribute and, in some cases, stopped contributions altogether or withdrawn money, according to a study released on Monday.

The study by Hewitt Associates, which administers 401(k) plans for corporations, found the average U.S. 401(k) plan balance was down 14 percent through October to $68,000 from $79,000 in 2007.

401(k) refers to a section of the U.S. Tax Code that allows retirement plan investors to defer paying taxes.

Hewitt, a human resources consulting and outsourcing firm, found 4 percent of workers had stopped contributing to their plans in response to the declines on Wall Street, and fewer are investing in stocks.

Many people moved money into safer assets after particularly bad days in the stock market, said Pamela Hess, Hewitt's director of retirement research. .......(more)

The complete piece is at: http://news.yahoo.com/s/nm/20081124/us_nm/us_hewitt_retirement

[LiberalFighter]

1. If workers have the money they should still invest in their 401k

Just put it into an income fund or something similar.