bathroom construction winnetka adding front porch to bungalow upstairs bathroom addition remodel colonial home exterior lake bluff modular sunroom addition .. Chicago Drug testing

Pension Plans

If you have a pension plan at work you will want to read this and if you don't you will still want to because it affects your retirement account.

There are two kinds of formal retirement plans that are set in place by employers. The least complicated is the Defined Contribution where you are allowed to make your own contribution and your employer may also make matching contributions of a percentage of what you put in. At retirement you get out what you put in plus all accruals. The more you contribute the more you have for retirement. A professional money manager who tries to get the most return for the amount in the pool manages the money. He is paid an amount usually a percentage of the assets in the pool, not on performance.

Sometimes a large mutual fund such as Fidelity or Janus is the manager and you are allowed to choose from 6 or 8 different mutual funds in which to place your cash. They do not encourage you to switch from fund to fund even if a fund you are in is under performing.

The Defined Benefit pension plan is much better for the employee. It states the amount you will receive monthly upon retirement. Your contribution amount is fixed and the company makes up the difference to be sure that there is enough money in your account so you will be paid the amount specified. The pension manager must use an actuarial table to figure how much money is necessary to be placed in the pool each year.

Recently it has been found that many companies have been using unreal rate-of-return figures for projection of profits. What the company is allowed to do under current law is to add any overage of calculation to their bottom line. Now it seems that those numbers have been far off so instead of your company showing a big profit last year they will be showing a loss. Suppose your manager had figured the plan would grow at 10% and now it has only grown at 5%. This could have disasterous affect on your company's bottom line and certainly on your company's stock prices.

You might want to ask your company Controller or Treasurer for a report on how your pension plan is doing including what assumption they are making for return on investment.

In a long-term bull market mutual funds do well, but in a long-term bear market mutual funds will lose money. No one talks about this, especially the mutual funds, but it is an obvious fact when you step back to look at the overall market performance for the past 75 years.

During a bear market there are only two types of accounts you can have within a 401K or other retirement account to protect yourself from loss ? either a money market account or a fixed income bond mutual fund. Better check it out.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

1-888-345-7870; al@mutualfundstrategy.com

In The News:

How to Read an Annual Report

Every publicly traded company is required by the SEC(Securities and... Read More

Rebalance And Diversify

The stock market has not been very kind to your... Read More

Tips to Finding Other People?s Simple Trading Plans

Did you know you can make money (and a lot... Read More

Who Knows?

The Shadow knows. Remember him? It seems a shadow has... Read More

365/7/24

What does it take to be a stock trader? It... Read More

Trading as a Business

What can I expect to make my first year of... Read More

Moving Averages

Every day on CNBC-TV they show a 200-day moving average... Read More

The Cub; II

We keep hearing about this bear market and that the... Read More

Different Types of Mutual Funds

This is a guide to the different types of mutual... Read More

Lies, Damn Lies and Mutual Fund Returns

How many times has this happened to you? You're at... Read More

How To Make, And Keep, Money Trading Stocks

If you are serious about making and keeping money by... Read More

Analysts - Do They Really Know The Stock Market?

When you become interested in a stock or mutual fund... Read More

Shorting Stocks ? The Basics, Part I of II

What does it mean to short a stock?This means that... Read More

?Fears Only Enemy Is Action?

What a great statement!I just heard someone use it in... Read More

Protectionism

First let's see what protectionism is. According to Mr. Webster... Read More

Pension Plans

If you have a pension plan at work you will... Read More

Buy Low - Sell High

Now where have I heard that before? I know. It... Read More

Small-Cap Stocks: The Beginning of the Journey

When an individual investor wants to roll up his sleeves... Read More

Which Way The Market

I am hearing predictions by brokers, financial planners, talk show... Read More

Why the Majority Fail at Stock Investing

The gleam and bright lights of Wall Street lure in... Read More

Inertia Syndrome

When it comes to buying a stock or mutual fund... Read More

How Much Information Do You Need?

You have decided to buy some stock or mutual funds,... Read More

Dollar Cost Averaging

Dollar cost averaging is one of the most popular ideas... Read More

Making a Stock Watch List

I am taking the time to help others learn the... Read More

Good Stock Market Tip; Good Return!

Forget making a profit; instead focus on the income provided... Read More

leds lighting street light lamps Pete's produce ..
leds lighting street light lamps Pete's produce ..