Afraid to open your 401 (k) statement? Peter St. Onge The Charlotte Observer, NC McClatchy-Tribune Regional News
February 22 - It is a witness to the heart of the financial statements sitting in your mail stack you torment. Opening your 401 (k) a statement today might give rise to a number of emotions - none of these bonds. So, if you bother?

Joseph Leonard understands. He is the author of "Retirement Vault: A Guide to Protecting Your Assets in an Age of Uncertainty." He is also CEO of investment advisors Coastal, based in Southport, south of Wilmington on the NC coast.

We caught up with Leonard five solid advice about your 401 (k):

1. What happens to my 401 (k) money if I lose my job?

When people lose their jobs, many of their benefits remain intact. You can never lose your 401 (k), just because you lost your job. Obviously, your former employer is no longer responsible for the correspondence you have any contributions May be, but the account itself remains intact. In some cases, a new employer May begin with a contribution to your original 401 (k).

Most often, you want to convert your 401 (k) to an IRA. Conversion to the IRA does not force you to pay taxes or to change any of your limits. It just gives you more freedom. Your money will not be in the company 401 (k) funds and will no longer be managed by this company, select the fund manager.

2. Can I continue to contribute if I was fired? (Is what I want?)

You can still contribute. However, you will not receive a match from your previous employer. Convert your 401 (k) to an IRA and contribute to the tax limits. Remember that even if the account in May is down, you want to be storing as much money as possible away from retirement. Anything you contribute to a 401 (k) or IRA is a tax deferred and the possibility of increasing tax deferred until you begin to draw from the fund.

3. Should I withdraw my cash only, and things under the mattress?

Under no circumstances is the best solution to simply draw your cash and hide it. First, you will be taxed at the rate that funds made up for this year. If you are not at least 59 1 / 2 years, then you also incur a penalty tax on top of the tax due. If you're concerned about the declining value of the funds in your account, then there are better solutions to the liquidation of the account.

You can have all the funds in your account converted to cash or physical markets without make money on the account. You can also think of driving on the account of your institution in a kind of fixed and fixed indexed annuities to avoid further losses.

Keep in mind, even if the stocks and mutual funds you have in your account have fallen very low, you still own these stocks and mutual funds. Your goal is to have those particular investments rebound in the coming years. If you are already retired and drawing an income from these investments, it May be time to look seriously at a fixed rate and the annuity rate available. As a retiree's portfolio, guarantees may be superior to large returns.

4. Should I open the envelope and look at my monthly 401 (k) statements?

More and more people have observed recently: "I did not even look over my records!" In these stressful times, it is certainly an understandable position for someone to take. Many people have gradually seen their account values be cut by nearly half over the last year.

It is a mistake not to read your monthly statement. If you are still in your working years, it might be a good idea to look at the funds you have selected in your portfolio. May it be a good time to consider buying a high-end, blue chip stocks are too expensive for you, a year ago and are now at their lowest. If you are retired and drawing from your 401 (k) or IRA, it is important that you receive each statement. You must know what you have to work, which will require some aspects of the life you choose to drive.

5. Should I take my 401 (k) contribution and move temporarily to a short-term money market income?

If you are already retired and rely on your accounts to supplement your retirement, then yes, find the highest rate fixed or money market rates May be your best option. Many people who have retired in the past two years have grown very accustomed to riding on market trends.

Many of these same people find that they no longer receive an income, it becomes increasingly difficult to cope with the constant ups and downs in the market. For this group, I would say simply, you need to know what portion of your money, you know very well that you can not lose, and then for ways to protect it.