The Yo-Yo Market — Will Your Retirement Plans Meet Your Needs?

Summer is a lazy time of the year, and the market was certainly relaxed until mid-July. The major indices dropped by over 2% as bad news spooked investors. The talking heads in the mainstream media continued blabbing about a double dip recession. Everyone seems to have a macro-economic forecast. A little perspective from Wikipedia shows how absurd these alphabet predictions can get. Did you know that there are also V-shaped, U-shaped, W-shaped, and L-shaped recessions? We like Warren Buffett’s quip: “The cemetery for seers has a huge section set aside for macro forecasters.” Andy Kessler’s recent article in the Wall Street Journal may be the most credible explanation of today’s market dynamics with his description of a “yo-yo” market.

MarketRiders helps you invest as elite endowments, pensions, and foundations do, except that we are able to help you invest in “alternative” asset classes like private equity, venture capital and hedge funds. Investing in alternatives is costly because of the due diligence and expertise required in selecting managers. Fund-of-Fund products sold by brokers help select managers (although many missed Madoff), and they give you some access to funds. However their outrageous fees eradicate all the benefits. Don’t fret about missing out on alternatives. We bring you a study showing that these investments aren’t delivering as promised.

The Washington-based Employee Benefit Research Institute (EBRI) released a study to wake up anyone over 40 years old who doesn’t have a retirement plan in place. The study shows that because we’re living longer and the market has not done well recently, you may be working well into your golden years.

If you get worried about retirement, you can quickly build a comprehensive plan with CNN Money’s retirement calculator. It is a sophisticated, easy-to-use, free tool. Take some time one lazy day this summer and check it out.