|
Posted by Elizabeth Richardson on March 18, 2008, 2:08 pm
news:Gtudnb0Ugu_nf0LanZ2dnUVZ_h-
>
> Elizabeth, 'fixed income' is too generic for me to be comfortable with
> your response. Given the events of the last few months, I'd not offer any
> confidence level without knowing the make up of that fund.
Joe, her fear is whether or not JH will go belly-up. She is an employee of
JH. While I understand that things in the fixed income market have changed
in the past year, her fears are the same as a year ago. She works for JH and
somehow she is being made to feel, as an employee, that the company is not
doing as well as their financial reports indicate. My response to this
particular poster is not original: We have nothing to fear but fear itself.
Elizabeth Richardson
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
|
|
Posted by joetaxpayer on March 18, 2008, 3:28 pm
Elizabeth Richardson wrote:
> news:Gtudnb0Ugu_nf0LanZ2dnUVZ_h-
>
>>Elizabeth, 'fixed income' is too generic for me to be comfortable with
>>your response. Given the events of the last few months, I'd not offer any
>>confidence level without knowing the make up of that fund.
>
>
> Joe, her fear is whether or not JH will go belly-up. She is an employee of
> JH. While I understand that things in the fixed income market have changed
> in the past year, her fears are the same as a year ago. She works for JH and
> somehow she is being made to feel, as an employee, that the company is not
> doing as well as their financial reports indicate. My response to this
> particular poster is not original: We have nothing to fear but fear itself.
>
> Elizabeth Richardson
Ok, now that I sorted on 'sender' I see the old threads. She was no
longer with JF, and asked about rolling to an IRA. For a self-described
nervous investor, she left herself in a 401(k) when an IRA holding
government notes/bonds would have been better for her risk tolerance.
While I agree that one needs to view the fund manager's stock as
distinct from the funds themselves, I still need to be cautious with any
fund using the words 'fixed income'.
Joe
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
|
|
Posted by on March 18, 2008, 5:33 pm
> news:Gtudnb0Ugu_nf0LanZ2dnUVZ_h-
> >
> > Elizabeth, 'fixed income' is too generic for me to be comfortable
> > with your response. Given the events of the last few months, I'd
> > not offer any confidence level without knowing the make up of that
> > fund.
>
> Joe, her fear is whether or not JH will go belly-up. She is an employee of
> JH. While I understand that things in the fixed income market have changed
I don't have her older post handy, but from this current one,
it wasn't obvious that she worked for JH, but rather that
her 401k fund was invested in a JH fund.
Either way, the money in the 401k is safe inasmuch as
her ownership of whatever investment she holds in the
401k is not subject to creditors of JH. As to what the
fund itself holds, those assets themselves may be risky,
but if it's a decent and diversified portfolio, that
shouldn't be a problem either.
If her 401k was invested in her employer's stock (a la Enron),
then of course, that portion of her 401k investments are
very risky. Not that creditors would take her 401k,
but that the contents itself - the stock - may become
worthless. That's why one ought hold a minimum of one's
employer stock in a 401k. And has nothing to do with
whether one ought to avoid investing in funds managed
by your employer (if your employer manages funds) in
your 401k.
Perhaps the OP will pipe up and clarify exactly what
her situation is and what, specifically, she's worried
about.
[I just dug up her older post and it asks what happens
if her employer goes bankrupt. The answer, as before,
remains - no - assets in the 401k are separate and
safe from your employer's creditors. The only thing
specifically in danger there is if you hold your
employer's stock itself in the 401k. Nobody will take
the stock away, it just may become worthless. At
worst, you may have a hard time accessing your account
for a while while management gets straightened out
and administration is passed along to someone else]
--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
|
| Similar Threads | Posted | | Another Question re: Credit Monitoring/Protection | November 13, 2006, 7:11 pm |
| 401k rollover into 401k or IRA question | January 12, 2007, 3:33 pm |
| 401k | October 22, 2006, 4:48 pm |
| 401k "force out" | September 18, 2007, 5:15 pm |
| 401k rollover | October 30, 2006, 5:01 am |
| 401k, really worth it? | November 1, 2006, 7:11 pm |
| Individual 401K LLC | November 5, 2006, 8:34 am |
| 401K rollover | November 7, 2006, 10:40 am |
| Put 401K into an Annuity? | November 21, 2006, 9:53 am |
| Roth 401K? | January 2, 2007, 5:04 am |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap