Don’t Look At Your 401K, Look at Your Company

So many of us are looking at our 401Ks and remembering the last bear market. Experts agree, if you are in it for the long run, stay put. There are boomers out there that need to cash out and they are doing just that.

Instead, start looking at the company, your employer. Start to look at the financials, sales, trends in the market etc. Get to know your company in a much more intimate way. In a world of uncertainty and global financial distress, you need to understand where you stand.

If you work for a company that has been hit hard by not getting commercial paper, make sure that it is temporary and that they will benefit from the Federal government’s new offering. If you don’t understand what commercial paper is, you should. During times of turmoil, you cannot afford to be ignorant. If your company is having trouble getting commercial paper, you might not get your paycheck.

More than any other time in my career, I am telling people to get smart and educate themselves. You need to understand what the people in Washington are doing, because it will affect us all in very profound ways if they don’t do it right.

Bottom line, you need to look at the market sector your company is in and understand how the financial crisis is affecting your sector. Next you need to understand how your company is positioned in that sector. Then look at the financial viability of your company. Finally, try to figure out how viable your position is in the company.

Nobody can afford to sit on the sidelines right now and hope that they will not be affected by the current economic conditions. Those who manage their career are always more successful. Managing your career is no longer an option.