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Summary: Contributions into pension plans, whether they are an IRA or 401k, are minimal when the economy is struggling. Find out why it may be important to allocate alternative asset classes into stock with help from a personal asset manager in this free video on investing in the stock market and money management.
Roger Groh is the founder of Groh Asset Management. He manages portfolios for many types of customers, including customers seeking growth, income, stability or international customers.read more
"Hi, I'm Roger Groh with Groh Assest Management. We're here today to talk about fuel. Not the kind of fuel you put in your car, but the kind of fuel that makes stock markets go up. What that fuel is are contributions into pension plans. Whether it's your IRA or 401K that you've made, or a contribution that the company has made for you into a pension plan. When there's fuel, there's future. When there's not fuel, there's not. For instance, this year, at the end of 2008, with corporate profits taking a pretty good beating across most industries, it seems unlikely to this investor that there will be many contributions to pension plans. Without that fuel, you wonder, what's going to make the market go in 2009? Well, the answer might be allocation from other asset classes into stock, but so far we haven't seen that yet. Looking forward to 2010, as corporate profits rebound and there's more cash, well then contributions should begin again into defined contribution plans, defined benefit plans, and also into your IRA and your 401K. That provides cash, that provides liquidity, and that provides fuel. I'm Roger Groh. Thank you for spending a few moments with me."
eHow Article: Effect of IRA & 401K Contributions to Stock Prices