(NECN) - Today on NECN, we answered viewer questions focused on the market and 401ks.
Kathryn in Boston: Although market fluctuations can't be predicted, lets suspend reality for illustration purposes. Imagine you're an investor in August 2008, and you had a crystal ball that told you markets would drop 40% through January. Your retirement savings is invested and well-diversified. How would you have cashed out of long-term holdings of stocks, bonds, and mutual Funds to minimize the impact? Are capital-gains taxes the biggest deterrent?
Richard in Princeton, NJ: Your book..."Protecting Your 401k and IRA" has been very helpful. Speaking of the "protecting" part, my question relates directly to preserving capital in my 401(k). I understand FDIC increased their coverage limits but that doesn't apply to my 401k investments. What portion of my current 401k retirement plan assets are really insured, and what, if anything, can I do to make them safer?
Caroline in Boston: Should people invest the same amount into their 401 (k) plans as before? What should people do if their employers suspend matching?
Drew in Somerville: I'd really like to refinance and lower the interest rate on my mortgage. I'm not eligible for a modification because I'm making my payments on time. I have equity, but less than before. The bank tells me that the PMI guarantor has changed its insurance requirements. This is frustrating…when will the banks be ready to offer programs under the new package?
Click below for the answers
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