Retirement Plan Account Fund Allocations

The Federal Reserve Bank has lower the prime interest rate from 4.25% to 3.5% in two steps to try and get head off a predicted recession. This will cause interest rates to reduce and will influence the upward movement of the stock market.

If you moved the balance of your account to money market when rates were increased, watch the market, indexes, and Dow Industrial Average to determined when to get back into the market.

In 401 (k) accounts your contribution is matched by the employer (example: by 50% up to 5% of your wages or salary). Not all employees have a 401 (k), but if you do sign up now. Where can you get a 50% return without risk. Thirty per cent of employees that have a 401 (k) do not participate. Your contribution is before income taxes but is subject to Social Security and Medicare taxes.

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