Black MBA - Winter 2008/2009 - (Page 27)

I can give anybody – no matter how old or young they are, whether they make a lot of money or a small amount of money – your best asset is your job and the money you make doing it. So keep working and keep saving.’’ Say you are working as an MBA in the finance department at an auto company, and you are worried that your company will go bankrupt and you will lose your job. What should you do? Save and keep investing in your 401(k). Why? Even if your portfolio has sustained losses, it is what you will rely upon in the future. Jason J. Tyler, senior vice president and director of research at Ariel Investment Group in Chicago, agrees. He says at the most basic level the easiest money out there to match is in a company’s 401(k) plan. “Make sure you look forward,” Tyler advises. “Don’t look back at what’s happened in the market. We’ve heard about a lot of people pulling money out of their 401(k) plans and mutual funds. When you try to time the market, that’s when you get awful results. Be a constant investor. Try to add more when the markets are weak.’’ Without a doubt, it might be easier to bury your head in the sand like an ostrich and ignore those foreboding retirement statements until the ill wind passes, but by then it may be too late and the losses too great to recover. So buck up. Open those statements and prepare to meet the challenge. Here is some more advice on how to survive the nation’s worst economic downturn since the Great Depression. INVESTMENTS Generally, the younger you are, the larger percentage of your income you want to have in equities, such as stocks instead of cash, and fixed income, such as municipal bonds, Tyler says. This is especially true when the market has been struggling. Everyone in their 20s and 30s with a long history of working and investing on the horizon should be as close as possible to having 100 per- cent of their investments in the stock market, he says. At this age, they have a longer time to recover from the losses than, say, someone who is closer to retirement. Even people in their 40s might be working for another 15 to 20 years, so they should be thinking about stocks, not bonds. But the closer you are to retirement age, your investment horizon starts to shrink and you should be thinking about less volatile investments such as cash and bonds. At the beginning of 2007, the Employee Benefit Research Institute estimated that almost 40 percent of 401(k) participants ages 56 to 65 had 80 percent or more of their accounts invested in stocks. This is not good. Now, these workers may end up having to work longer to recoup losses sustained on the market. For younger people, one of the best ways to rebuild a retirement portfolio is to maintain a presence in the stock market, but change up the strategy. In the past, for example, banks paid higher Expect More Opportunities. Cummins is Seeking Leaders of Tomorrow Cummins is a Fortune 500 company that designs, manufactures, distributes and services engines and related technologies around the globe. The energy and commitment of nearly 40,000 employees make it possible for Cummins to be a market leader worldwide. n Qualiﬁed and Capable Cummins is a leader in diversity initiatives and has been recognized by DiversityInc magazine as one of the Top 50 companies for diversity and the No. 1 Company for Asian-Americans. Cummins also has been named a top corporate citizen by CRO magazine for the last nine years. n Check out employment opportunities on www.cummins.com Get More Opportunities. BlackMBA • Winter 2008/2009 27 http://www.cummins.com http://www.cummins.com

Table of Contents Feed for the Digital Edition of Black MBA - Winter 2008/2009

Black MBA - Winter 2008/2009 Contents Preserving Dr. King’s Legacy: Harry E. Johnson is Six Years and $100 million into his First Fundraising Effort Online: www.nbmbaa.org and www.blackmbaonline.com Up Front: Inauguration Takes Over D.C. From the President: Connecting With the Basics The First 100 Days – Already in Progress Back to Basics: Finances 101 Is the Middle Class Disappearing? – Your View From Medals to MBA Conference Highlights Market Forces: The Job of Trying to Find a Job in a Tight Market Applying to an MBA Program?: Avoid Making these Five Critical Mistakes How They Did It: Catching up with the Winning Teams from NBMBAA’s 2008 National Case Competition Change It Up: If a New Job is at the Top of your New Year’s Resolutions, it’s Time for Careful Planning and Preparation Bull Market: Now is the Time to Take Advantage of Web 2.0 On the Move: Member News, Promotions and More Backstage at BET: NBMBAA’s Leadership Institute Takes on BET’s Case for Growth Toronto Rising: NBMBAA’s Toronto Chapter is on a Progressive Track, Building Strong Partnerships and Exposure as Membership Climbs NBMBAA® Chapters: Find Your Local Chapter Here Do What You Love: Turning Your Passion into a Successful Business Requires Patience, Planning and Plenty of Hard Work Above and Beyond: Meet the Winners of the 2008 Wells Fargo/NBMBAA Entrepreneurial Excellence Award Decorating by Design: Michelle Rider Leaves Corporate Life for Entrepreneurship Culture Shock: Black Museums Nationwide Appeal for Greater Support from the People whose Heritage they Strive to Preserve Gear Up for 2009: Books to Herald Success in the New Year Advertiser Index: Who’s Who in the Issue

Black MBA - Winter 2008/2009

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