In September of 2008, I wrote an article discussing why putting a halt on your 401K contributions during the recession is not a "smart money" decision. According to a survey from The Investment Company Institute, people have been following my advice (Thank you!)
A study following 3,000 households found that 90% of those households had a favorable view of their 401K system and 73% are confident that their plan will help them achieve their retirement goals. Another survey reported that six out of ten Vanguard 401K participants through the third quarter of 2009 had a balance in their accounts that was similar to or larger
With this exciting potential for financial growth that is available to those who stuck with their 401K, it is no surprise that 84% of workers who were automatically enrolled in a 401K program by their employers have stuck with their plans, versus only 77% in 2007.
The key to reporting these successes is financial education. By taking advantage of the wealth of knowledge that financial education companies like The Financial 411 offer, individuals become more literate in their finances and are able to report results similar to these studies.
If you are debating whether or not you need to put your 401K on the back burner during these economic off-times, pay attention to these statistics and seek the advice of a financial professional who can provide you with the expertise that your investments deserve.
To read my original piece on why investing in your 401K is important despite the downward economy, follow this link:
http://the411.typepad.com/weblog/2008/09/why-not-to-stop-401k-contributions-now.html
For more information about the studies mentioned in this post, please visit http://online.wsj.com/article/SB10001424052748703481004574646213870921206.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsSecond
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