In the United States of America, a 401(k) plan allows a worker to save for retirement and have the savings invested while deferring income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wage paid directly, or "deferred," into his or her 401(k) account. In participant-directed plans (the most common option), the employee can select from a number of investment options, usually an assortment of mutual funds that emphasize stocks, bonds, money market investments, or some mix of the above. Many companies' 401(k) plans also offer the option to purchase the company's stock. The employee can generally re-allocate money among these investment choices at any time. In the less common trustee-directed 401(k) plans, the employer appoints trustees who decide how the plan's assets will be invested.
I contribute 6% of my monthly salary and the company matches my 6%. Last year i lost a total of 21% of my portfolio. Grrrrrr. Now i have moved my accounts to less aggressive stocks.
With a whole lot of luck on the 5th of January i will win the Millionaire Raffle in Michigan and i won't have to worry about it. See my post in gaming section, still time left to get your ticket.
Bob
