Managing 401(K) Plans

Domestic stock indices across the board fell again in March 2008. Worst hit was the Wilshire 5000 Equal that posted a loss of -3.01 percent. Foreign indices fell as well with the international MS EAFE yielding a negative 1 percent. Looking at yields over the long term, the barometer by which retirement holdings should be judged, domestic stocks were a mixed bag over the past 10- and seven-year periods, but did well over the five- and three-year periods. But diversification to limit overall risk is needed. Over the 10-, seven-, three-, and one-year periods, five-year Treasuries outperformed bonds and five-year GICs. Over the five-year period, five-year GICs took the lead.