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Don’t Stick Your Head in the Sand and Ignore Retirement Funds

Created: On October 15, 2008 @ 10:42 am In

I just peeked at my IRA account and it wasn’t pretty. At least I looked. Quite a few people have told me in the past couple of weeks that they refuse to look at their retirement accounts to see how much money has been lost as the stock market has gyrated.

I’m not surprised people are taking the losses so hard since Americans have lost about [1] $2 trillion in retirement savings over the past 15 months. But I am surprised that so many people don’t even want to look at their portfolio to see where they might be able to make changes to minimize their losses.

While financial experts are cautioning people against panicking and liquidating retirement funds, or selling off shares without fully analyzing their situation, it does make sense to rethink your retirement strategy to see where you can put your dollars to make them work harder. Even if you’re working to pay down debt it’s important to continue contributing to a retirement plan, so make sure your money is in the right place.

For example, people who are nearing retirement should reevaluate their portfolio to make sure they don’t have too much money in stocks. And some people may find comfort in moving a portion of their cash into Treasuries, bond funds, money market funds, or CDs. Not everyone has the same situation so cookie-cutter approaches are out. A financial advisor can help you make some smart choices.

I’m taking a hard look at all my assets—not just my retirement funds—to see how I can effectively manage my money so it can continue to grow.

Source

[2] Wall Street Journal

About the Author:

Francine L. Huff is a freelance journalist and the author of [3] The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows.

Article printed from DebtHelp.com Blog: http://www.debthelp.com/blog

URL to article: http://www.debthelp.com/blog/2008/10/15/don%e2%80%99t-stick-your-head-in-the-sand-and-ignore-retirement-funds/

URLs in this post:
[1] $2 trillion: http://online.wsj.com/article/SB122342685954113657.html?mod=relevancy
[2] Wall Street Journal: http://online.wsj.com/article/SB122342685954113657.html?mod=relevancy
[3] The 25-Day Money Makeover for Women: http://www.huffwrites.com/