NOW WE ARE WAITING TO SEE
EXACTLY WHAT HAPPENS AT
2:00 WHEN WE GET THE REAL NEWS.
THIS IS THE TIME OF YOUR ORDER
WILL BE IN EARLY JANUARY WHEN
YOU CAN DECIDE WHERE YOU WANT
YOUR 401(K) MONEY TO GO, YOUR
RETIREMENT MONEY.
STOCKS, BONDS, CASH OR A MIX OF
ALL THREE.
WITH ALL OF THIS VOLATILITY IN
THE MARKET, HE MAY NOT BE SURE
WHERE TO PUT YOUR MONEY.
HE IS WITH FIDELITY.
THEY ARE BIG IN THE 401(K)
BUSINESS AND IS AT THE TODAY.
YOU GET TO CHOOSE OUR
ALLOCATION.
DEPENDING UPON YOUR AGE OF
COURSE.
SOMEONE WHO IS 60, 65.
ONE OF OUR VIEWERS.
SHOULD THEY BE PUTTING MORE OF
THEIR 401(K) MONEY INTO STOCKS
OR LESS?
>> THE CLOSER YOU GET TO NEEDING
THE MONEY, THE MORE CONSERVATIVE
YOU SHOULD BECOME.
THE THING TO KEEP IN MIND IS
RETIREMENT -- WE'RE LIVING
LONGER IN RETIREMENT.
WE WANT TO MAKE SURE THAT YOU
MAINTAIN EQUITY EXPOSURE AND YOU
CAN HAVE AN INFLATION HEDGE.
68, 65% IS AGE-APPROPRIATE.
HE'S GOT A LOT OF MONEY
CONTROL --
STUART: YOU'RE 60 YEARS OLD.
YOU'LL BE COMFORTABLE WITH ABOUT
60 TO 65% OF THEIR 401(K) MONEY
IN STOCKS.
AND THAT DOESN'T DEPEND ON YOUR
OUTLOOK FOR STOCKS.
PLANAR PENSION MONEY RIGHT.
THE 401(K) PLAN IN MOST CASES
YOU HAVE OPTIONS FOR MUTUAL
FUNDS AND ASSET ALLOCATION
PROGRAMS.
IT MAY TAKE ALL THE GUESSWORK
OUT OF MAKING SURE YOU MAINTAIN
THE ASSET ALLOCATION OR YOU
COULD EVEN HAVE A MANAGED
PORTFOLIO IN A 401(K) PLAN.
SO YOU'RE NOT REACTING TO THE
STOCK MARKET.
YOU'RE STAYING TRUE TO YOUR
TARGET RISK AND AGAIN YOU DON'T
WANT TO BE TOO CONSERVATIVE JUST
BECAUSE YOU'RE APPROACHING
RETIREMENT AGE IS THE MONEY HAS
TO CONTINUE TO GROW FOR A LONG
TIME.
STUART: YOU HOPE YOU WILL FOR A
LONG, LONG TIME.
IT'S A GOOD POINT.
IF YOU'VE REACHED THE AGE OF 65,
I THINK YOUR LIFE EXPECTANCY IS
ABOUT ANOTHER 20 ODD YEARS.
IS THAT RIGHT?
LIVING LONGER.
SO YOU'RE GOING TO MAKE IT
STRETCH OUT OVER 20 YEARS.
YOU CAN TAKE A LITTLE BIT OF
RISK IN STOCKS.
>> THE ONE CONCERN MANY
INVESTORS HAVE AS THEY GET
CLOSER TO RETIREMENT IS
WITHDRAWING MONEY INTO THE
MARKET.
ONE OF THE WAYS PEOPLE PROTECT
THEMSELVES AS THEY MADE SURE
THEY GOT MAYBE THREE TO FIVE
YEARS WORTH OF LIVING EXPENSES
IN A SAFER BUCKET SO TO SPEAK.
THAT IS ONE WAY TO MAKE SURE
NUMBER ONE YOU CAN GROW YOUR
MONEY BECAUSE THE BIGGEST
CONCERN AMERICANS HAVE ABOUT
RETIREMENT IS RUNNING OUT OF
MONEY.
NUMBER ONE BIGGEST CONCERN.
YOU DON'T WANT TO BE TOO
CONSERVATIVE.
STUART: I'VE GOT A PET PEEVE
WITH RETIREMENT PLANS.
I'M GOING TO TELL YOU ALL ABOUT
IT.
I'M GOING TO BE 70.5 IN JANUARY.
THAT MEANS I'VE GOT TO START
TAKING MONEY.
THEY FORCED ME TO TAKE MONEY OUT
OF MY RETIREMENT SAVINGS.
I THINK IT'S ABOUT 4% A YEAR
THAT I'VE GOT TAKE OUT NO MATTER
WHAT APPEARED I DON'T WANT TO DO
THAT.
THERE'S NO WAY AROUND IT, IS IT?
>> THERE'S NO WAY AROUND IT TO
THE REQUIRED MINIMUM
DISTRIBUTION RULES ARE LITTLE
BIT COMPLICATED.
MOST PEOPLE KNOW THEY HAVE TO DO
IT, BUT A LOT OF PEOPLE DON'T
KNOW HOW TO CALCULATE IT, HOW
MUCH DO I REALLY HAVE TO TAKE
OUT?
SO RIGHT NOW YOU ARE REQUIRED TO
DO THAT.
THERE'S SOME STRATEGIES THAT CAN
COME INTO PLAY.
YOU CAN ANNUITIZE SOME OF THAT
MONEY.
THERE'S SOME STRATEGIES YOU CAN
USE.
MOST PEOPLE WOULD NOT TAKE THE
MONEY OUT IF THEY DIDN'T HAVE
TO.
>> I DON'T WANT TO.
I'M STILL WORKING.