Off-Topic: Be Proactive

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	Name:	MartiniMan -
	Subject:	Be Proactive
	Date:	8/12/2010 3:18:14 PM

Lets see what would happen if we all took that advice. There is a total of $2.5 trillion in assets in 401k's. Remove all that from the market and the represents about 10% of the total U.S. stock market. Add to that the $4.2 trillion in IRA accounts and now we are talking removing 25% from the stock market (yes I know not all those are in equities). That might not be a good thing for any of us which is one reason I have been willing to ride the ups and downs. I am also 15-20 years from retirement so I can afford to absorb some paper losses right now.

So for many Americans with 401k's (those not close to or already retired) by far the biggest impact of the drop in 401k value is psychological. People have seen equity in their homes decline and the value of the their 401k decline and they begin to save more rather than spend. That drives down the economy.