The past 12 months have been like a roller-coaster ride through an economic horror show. On the downhill slope, we have seen brokerage and bank failures, a contentious presidential election, an $800 billion dollar stimulus package and we hit the bottom in
The past 12 months have been like a roller-coaster ride through an economic horror show. On the downhill slope, we have seen brokerage and bank failures, a contentious presidential election, an $800 billion dollar stimulus package and we hit the bottom in March when GM and Chrysler filed for bankruptcy. On the uphill slope, we have been teased by “glimmers of light,” heard screams about “cash for clunkers” and are in the middle of an on-board brawl over health care reform. Like most people you have probably been holding your head down while the economic roller-coaster has been twisting, turning and going through its gyrations. You may have missed the fact that the stock market, as measured by the S&P 500 index, is up 52 percent from its low in March but is still down 20 percent from a year ago. (Investors cannot invest directly in an index.) This has been a gut wrenching trip, but like most good roller coaster rides, we may be close to getting back to the station. No wonder you’ve had neither the time nor the inclination to look at your 401(k) statements. Where is your 401(k)? If your 401(k) retirement account is like most, it is probably down about 20 percent from a year ago. Go online or look at your last statement and answer a few questions: – How does the total value compare to a year ago? – What are your percentages of equities/stocks, bonds and cash? – How do these percentages compare with your desired percentages of each? – What percentage of the total is in your company’s stock? Are you satisfied with the overall performance of your account and the allocation of your investments? If not, you may be ready for a 401(k) makeover. 401(k) makeover If your company uses one of the large 401(k) service providers, such as Fidelity or Vanguard, then the process is fairly straightforward, using the portfolio review systems available on their Web sites. If your 401(k) plan does not have a portfolio review system, then you may want to meet with your financial advisor or use the review system on Web sites such as: www.moneycentral.msn.com; www.quicken.com and www.mint.com. Most of the portfolio review systems have three basic steps and may take you about an hour to complete. ______ To read the rest of this article, subscribe to our digital or paper edition. For previous editions, contact us for details. Copyright 2009 Chicago Defender. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.