The Pension Protection Act of 2006 directed the Department of Labor
to provide plan participants and beneficiaries sources of
information on investing and diversification.
Many employees have the ability to choose or direct their investments
in their workplace retirement plans. For example, many people who
participate in a 401(k) plan choose where the money in their individual
accounts is invested among the plan抯 options. The Department of Labor
has a number of publications that provide information on various types of
investments typically offered in 401(k) and other employer retirement
plans, as well as information on the importance of diversification.
The Department抯 publication, Savings Fitness: A Guide to Your Money and Your Financial
Future, provides an overview of how to include retirement savings in
your overall financial plan. The chapter on Strengthening Your Fitness
Plan, pages 13�, describes different types of investments and
explains how diversifying investments can reduce investment risk. This
publication is available in English and Spanish.
Taking the Mystery Out of Retirement Planning is designed to assist
individuals who are within 10 years of retirement plan their finances.
Chapter 2, pages 9�, provides information on investing and
diversification. In addition, A
Look at 401(k) Plan Fees includes descriptions of different types of
investments typically offered through 401(k) plans.
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