"Elizabeth Richardson" <erichktn@[EMAIL PROTECTED]
> writes:
> "joetaxpayer" <joetaxpayer@[EMAIL PROTECTED]
> wrote in message
> news:Gtudnb0Ugu_nf0LanZ2dnUVZ_h-
> >
> > Elizabeth, 'fixed income' is too generic for me to be comfortable
> > with your response. Given the events of the last few months, I'd
> > not offer any confidence level without knowing the make up of that
> > fund.
>
> Joe, her fear is whether or not JH will go belly-up. She is an employee
of
> JH. While I understand that things in the fixed income market have
changed
I don't have her older post handy, but from this current one,
it wasn't obvious that she worked for JH, but rather that
her 401k fund was invested in a JH fund.
Either way, the money in the 401k is safe inasmuch as
her owner****p of whatever investment she holds in the
401k is not subject to creditors of JH. As to what the
fund itself holds, those assets themselves may be risky,
but if it's a decent and diversified ****tfolio, that
shouldn't be a problem either.
If her 401k was invested in her employer's stock (a la Enron),
then of course, that ****tion of her 401k investments are
very risky. Not that creditors would take her 401k,
but that the contents itself - the stock - may become
worthless. That's why one ought hold a minimum of one's
employer stock in a 401k. And has nothing to do with
whether one ought to avoid investing in funds managed
by your employer (if your employer manages funds) in
your 401k.
Perhaps the OP will pipe up and clarify exactly what
her situation is and what, specifically, she's worried
about.
[I just dug up her older post and it asks what happens
if her employer goes bankrupt. The answer, as before,
remains - no - assets in the 401k are separate and
safe from your employer's creditors. The only thing
specifically in danger there is if you hold your
employer's stock itself in the 401k. Nobody will take
the stock away, it just may become worthless. At
worst, you may have a hard time accessing your account
for a while while management gets straightened out
and administration is passed along to someone else]
--
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No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting
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