Erieversible

I have finally decided what to do about my 401(k).  It hasn’t been easy, as the concept is new to me and the current economic climate really makes a mockery of any decision making process.

In my working history in the UK I’ve been on final salary pension plans.  I contribute maybe a little, the company pays the bulk of it.  The final pension is based on a percentage of my salary when I retire or leave, the size of the percentage being based on length of service.  Simple to understand and non-volatile.  I think that lot is fairly safe, even in the current economic climate - the value doesn’t fall.  The fund may, in some way, get wiped out entirely, but my pension is secure.  Or as secure as anything financial is at the moment.

Which is the dilemma facing the average American.  When nothing is safe, what to do?  I figure the real fact of the matter is that you have to look at a 401(k) as a risk.  But what’s the alternative to risk?  There are several, but none are going to provide the level of return that people probably need for their retirement. 

So what have I decided?  To take the risk.  Quite simply, to start a 401(k) and to try and beat the savings account percentages.  The only way to do that and reduce risk is to stay alert, stay aware, and get educated.  Not to just pay up every month and cross my fingers, but to actively monitor and check up on the funds in which I invest.  Yes, that’s going to be an effort, but it is my money, and we’ve all seen recently what can happen to your money if you blindly rely on someone else.   So, it is every man, woman and young wage earner for themselves, I’m afraid.

Maybe this is the perfect time to buy in, when everything is at a low point.  trouble is, everything seems to hit a low point and then carry on downwards.

Oh what interesting times we live in…

So, three days into the new job, and after two days of orientation I entered the IT department.  First impressions are that as a company they not only talk the talk, but walk the walk as well.  Everyone is very friendly and the working atmosphere is quite remarkable.  Of course, in theory I could just have caught them on a good day, but I don’t think so.  This was the right decision!

Today I did most of the driving unaided; the GPS stayed tucked away.  No wrong turns, so I am getting to know at least a few of the roads around the place.

The pace of the house purchase seems to have settled down.  I think everything is now waiting for the legal processes to work through, though there’s some financial paperwork back in Erie needing a signature (or seven!).  That can wait until the weekend as it isn’t on the critical path.

In the next few days I have to make a decision on what to do about my 401k.  I’ve never had such a thing before, so whether to invest through that or take my chances elsewhere….a decision on which I’m trying to gather as much information as possible.  It is easy to focus too much on the last 12 months, and the general downfalls of 401k fund values, but I need to focus on the longer term.  Still not an easy decision, but a very interesting one!

So, another strange day, but all days at the moment are somewhat unique.  Routine is something we are working towards and which, hopefully, is now not too far away.