Most 401(k) Participants Ignore 2Q Volatility
09/09/2010 0 comments
Howard Stock at BankInvestmentConsultant.com reported that "Retirement plan participants are calming down, according to a Mass Mutual analysis of its plans."
It is further reported that "Only 4% of participants made changes to their 401(k) allocations in the second quarter, despite volatile a S&P 500 Index, which fell 11.4% over that time period."
Mass Mutual stated that "...we have been aggressively communicating with them on the importance of saving consistently and adhering to a long-term investment strategy,”
We concur with what Mass Mutual tried to educate participants, both in terms of savings and a long-term investment strategy. We would further like to point out that, however, a long-term investment strategy that has been sound and conservative. Being conservative and nimble is particularly relevant and important in current uncertain economic situations. Buy and hold asset allocation should be part of an overall portfolio but one should not blindly buy and forget.
labels:investments,401k,IRA,
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