Smart401K Blog

Whether you travel regularly for business or just take the occasional vacation, chances are you’ve had reason to travel by airplane. If you’re anything like me, flying goes something like this: You find your seat, shove your carry-on wherever it will fit and begin the painful process of trying to get comfortable. Whether napping, listening to music (aka blocking out your neighbor), or skimming the in-flight magazine, few give a second thought to the fact that they are zipping through the sky 30,000 feet above the ground in a giant metal tube. No matter how you look at it, that is both incredible and frightening. We put our lives in the hands of pilots who, often relying on an autopilot system, get us safely to our destination.

When it comes to your 401k, you are the pilot. You have control over how much money to contribute and how to invest your contributions. And like a pilot flying an airplane, you can put your account on autopilot – but you still need to keep a watchful eye and make periodic adjustments to stay on course.

In the Headlines

A look at some of the market movers from the week:

• Consumer sentiment slipped in June.
•  US industrial output was unchanged in May.
• According to a survey by Manpower Group, US employers plan to hire more workers next quarter than in any period since 2008 Q4.

The Week in Numbers 

It was a roller coaster week for U.S. markets. The S&P 500 started the week off slowly, closing off by a fraction on Monday. The Index fell Tuesday, but finished off its lows, closing at 1626.13. Despite reaching nearly a 12-point gain intraday, the S&P fell again Wednesday to close at 1612.52. The Index was able to rebound on Thursday, rising nearly 1.5% to finish at 1636.36. The S&P 500 completed the week by giving back some of Thursday’s gains to log a down week and finish at 1626.73.

In the Headlines

A look at some of the market movers from the week:

• The U.S. added 175,000 jobs in May.
• The U.S. Treasury continued selling its stake in General Motors.

The Week in Numbers 

Despite a rough midweek, the S&P 500 was able to pull out a gain this week. On Monday, the Index logged nearly a 10 point gain, finishing the day at 1640.42. The S&P 500 gave back most of those gains on Tuesday, and then dropped more than another 1% on Wednesday to close at 1608.90. On Thursday the Index regained its footing after trading below 1600, finishing at 1622.56. The rally continued Friday as the S&P 500 finished the week at 1643.38. For the week, the S&P 500 was up 0.9%.

This post is part of Smart401k CEO Scott Hollsopple’s contribution to the U.S. News & World Report Smarter Investor blog series. To view the original article, click here. Original post date May 21, 2013

Truly good horror stories are able to blend tension and fear in a sustained pattern. The best spine-chillers build terror rather than springing it on us; the writer weaves a tale that leaves us with a feeling of constant anxiety.

I couldn't help but think that some investors have inserted themselves into a horror story of their own imagining.

In the Headlines

A look at some of the market movers from the week:

• Berkshire Hathaway subsidiary MidAmerican Energy has agreed to acquire NV Energy for $5.6 billion.
• A Chinese firm agreed to purchase pork producer Smithfield Foods.
• Costco Wholesale Corp reported third-quarter profit above analysts' estimates.

The Week in Numbers

It was a rough end to a positive month for major U.S. market indexes. Despite a drastic late sell-off, which resulted in the S&P 500 dropping 1.4% and the Dow falling 1.3% on Friday, both indexes finished the month of May in the black. The S&P 500 gained 2.08% for the month to close at 1,630.74 with the Dow adding 1.86% to settle at 15,115.57.

Designing a retirement plan can be a very challenging task for an employer, as no two employees are exactly alike when it comes to investment knowledge and experience. Studies have shown that many employees feel overwhelmed if too many investment options are available in a retirement plan. On the other hand, some are experienced investors who prefer having a large number of investment options.

To find a proper balance in meeting the needs of different employee investor types, some employers add a brokerage option within the retirement plan, which allows participants access to a potentially unlimited pool of funds. Thus a selected handful of funds can serve as the “core” lineup of the plan to address the needs of most basic investors, while a brokerage account can address the needs of more experienced investors.

In the Headlines

A look at some of the market movers from the week:

• Durable goods orders rose more than expected in April.
• The Federal Reserve hinted in its minutes that it may begin to taper its QE program later this year.

The Week in Numbers 

This week, the S&P 500 Index had its first down week since April. The Index started the week off logging a loss of a little over one point. On Tuesday, the Index was able to gain a little footing, rising nearly three points to 1669.16. The S&P fell nearly 14 points on concerns of the Federal Reserve tapering its QE program later this year. The Index fell nearly five points on Thursday, ending the day at 1650.51. Fed concerns lingered on Friday, though the S&P 500 finished off its lows to close the week at 1649.60. For the week, the S&P 500 was down 1.1%.

This post is part of Smart401k CEO Scott Hollsopple’s contribution to the U.S. News & World Report Smarter Investor blog series. To view the original article, click here. Original post date May 7, 2013

Congratulations to anyone who’s decided to enroll in a 401k plan! Putting money into your 401k at work is still the easiest — and many experts argue the best — way to save for retirement. But it takes some thought and action on your part in order to truly maximize the benefit.

In the Headlines

A look at some of the market movers from the week:

• US jobless claims climbed at the fastest pace in six months.
• Three Federal Reserve officials gave speeches calling for an end to the QE program.
• Housing starts fell more than expected in April.

The Week in Numbers 

The S&P 500 Index was able to log 4 winning days out of 5 this week and reaching all-time highs. The Index started the week off logging a fractional gain on Monday. On Tuesday, the Index charged higher, rising nearly 17 points to finish the day at 1650.34. The rally continued Wednesday as the S&P rose another 8 points, only to give most of those gains back on Thursday to close at 1650.47. The Index rose again Friday, adding nearly another 16 points to finish the week at 1666.12. For the week, the S&P 500 was up 1.98%. The index is up 4.29% in May and 16.82% in 2013.

Talk of retirement investing generally seems to revolve around 401k plans and IRA accounts. This is understandable, given the high number of American workers clocking into private sector jobs on a daily basis. However, while private companies employ a large portion of the population and may dominate the 401k world, the Federal Government is actually one of the country’s largest employers. Anyone working as a government employee or member of the military has likely heard of the Thrift Savings Plan (TSP), which is essentially a 401k in disguise.