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Investing 101 |
One of the basics for investing
is diversification. "Don't put all your eggs in one
basket." Recently this statement has even more meaning with the
collapse of the Enron Corporation and the disaster that has taken place to
their employees who had invested their 401(K) retirement savings with
company stock. Employees at companies such as Lucent, Nortel
Networks, Global Crossing and Proctor & Gamble have also had their
retirement accounts drop substantially.
During the past fifteen years many company-sponsored retirement plans were
redesigned from defined benefit plans (guaranteed benefits) to defined
contribution plans (investment risk is on individual). Companies shifted
investment risk to participants who were their employees instead of the
stockholders of the company. It was easy, less costly and made stock
options more attractive for upper management as compensation.
Nothing stays the same is certainly true today! Stocks have suffered
some of their worst investment returns for 2000 and 2001. Maybe the
current recession is nearing an end - time will tell! What does this
mean for participants in the Local 30 Annuity Plan? It is a clear
message that you should not have all of your investments in one particular
type of investment. Spread your investment risk with both stock and
fixed income securities. With Fidelity you have 15 choices for
equalizing investment risk. Visit the Fidelity
website, learn more about your investments, get copies of each fund's
prospectus, read investment magazines, watch CNNfn or CNBC on cable -
educate yourself.
Members of Local 30 have the advantage of two Local-sponsored retirement
vehicles, Annuity plan and Defined Benefit. These plans have been
designed for you and your family's financial future. Utilize them to
their greatest advantage so when retirement comes you will not be one of
the unfortunate individuals that has to rely on Social Security and
savings only.
For more information, call the Funds office at (718) 847-6800 or
Fidelity at (866) 84-UNION. |
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