WOMEN in BUSINESS - February/March 2009 - (Page 14)

M o n E y M At t E R s In a Down Market, Keep Your Goals in Focus wRiT Ten bY KAthlEEn lEighton if the wall street roller coaster has made you more timid about funneling your hardearned money into retirement accounts, take heart. You’re not alone. no one has the magic answer, even though we’re all looking for one. but there are some rules of thumb to keep in mind as the economy falters and our 401(k)’s and other investments take a beating. “Regardless of your age, you should know your investment style,” investment advisor Greg Poleon says. “Are you aggressive, conservative or moderate? Once you know that, you’ll know what your 401(k) should look like.” “The worst thing you can do right now is stop putting money away,” says Greg Poleon, an investment adviser with the securities America office in williamsville, new York. “if you quit contributing to your 401(k), you lose the tax benefit and you also lose the possibility of employer matching, so keep contributing.” The investment mix can always be changed, so if you’re wary of the stock market, switch some of your money to the safer money markets or mutual funds. most 401(k) plans offer the ability to make changes throughout the year. it’s best to take a look at your mix of stocks and mutual funds twice a year or quarterly. “Regardless of your age, you should know your investment style,” says Poleon. “Are you aggressive, conservative or moderate? once you know that, you’ll know what your 401(k) should look like.” There are websites that determine your investment style (try www.choosetosave.org and click on “calculators”, which figures it out for you, free, without trying to sell you any mutual funds). if you have an aggressive style, for example, you may want 80 percent stocks and 20 percent bonds in your 401(k), so every quarter you should re-balance to your original goal. use the same rule of thumb for personal stock investments. if you work for a publicly traded company, be cautious about how much you put into company stock. “The great lesson from the enron fiasco is that there’s no telling when a company will go under,” says Poleon. “my recommendation is that an employee has no more than 15 percent of company stock in their 401(k).” Also keep abreast of new laws. Last year, legislation passed allowing 401(k)s to be amended to 401(k) Roths. The plan has the same principles as the 401(k) but instead of the tax benefit going in, there are no taxes when the money is pulled out. This is especially attractive for the highly compensated who would otherwise not qualify for a Roth. Talk to your human resources department for more information. Finally, treat your 401(k) and personal iRAs as your complete retirement package; don’t treat them as separate entities. Consult a financial adviser to manage your wealth. with some smart planning and practical foresight, you’ll be able to navigate even the roughest financial seas. Kathleen Leighton is a business writer whose articles have appeared in many national publications. 14 w o m e n i n b us i n e s s F E B / M A R 2 0 0 9 http://www.choosetosave.org

Table of Contents Feed for the Digital Edition of IN BUSINESS - February/March 2009

IN BUSINESS - February/March 2009 Contents ABWA Member Benefits Letter from the Executive Director Letter from CEO ABWA Board News A New Era Unfolds Money Matters ABWA Announcements Personal Skills Style Breaking Down Barriers Legal Matters Business Spotlight Workplace: Working Online to Build ABWA Teams Mind & Body Workplace

IN BUSINESS - February/March 2009

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