According to new research from investment advisory firm Financial Engines, although most 401(k) plan participants suffered significant losses in last year’s economic collapse, with the right planning “most people can recover, if they don’t panic and were on a good track to start,” says Wei-Yin Hu, the firm’s director of investment analysis and research.
Well, that makes perfect sense. However, statistics on savings rates show that even employees that contribute to a retirement plan don’t contribute enough and that upon last year’s wild stock market swings, many scared investors transferred their investments to cash or stable-value funds. In a rcent chat with Hu and some of his Financial Engines colleagues, I asked: Is there still a recovery for them?
