401Kafe/ IRA Junction

401Kafe.com

IRAJunction.com

These sites are similarly designed and contain various sections thatinclude commentary, news, community, tips, education, and tools. Some of these sections contain identical content, but as may be inferred from their domain names, one covers 401(k) plans, while the other covers individual retirement accounts (IRAs). Not only that, recent news items that affect your retirement plans are available, as well as general articles that increase
awareness of issues critical to your enjoying your golden years.

EDUCATION

The education section is the most valuable tool available on both these sites. It is divided in each into the following three parts:

1 Wall Street 101
2 401(k) ABCs/IRABCs
3 Bear's Cave.

It's always beneficial to get an idea of how much you can possibly lose during a bear market. In the Bear's Cave, you get an opportunity to determine this amount. Simply enter the amount you have invested -- the percentage allocation -- among various asset classes in the window provided. Once you enter these percentages, assuming you have an initial investment of $10,000 on January 1973, the value of this investment as of September 1974 will be displayed, after a bear market. Techniques you can use to reduce your losses during bear markets are also discussed here.

Other useful features include a message board where you can post questions about 401(k) plans and IRAs. It's also worth your time to visit the tips section, where you can read answers to specific questions that readers have asked. If you would like to ask a question, you can send one in, and each Tuesday, answers to questions are posted.

Both 401Kafe and IRA Junction are free community websites provided by mpower.com, a site that provides fee-based investment advice to 401(k) plan participants. The websites' plans include offering information on other retirement tools such as the 403b and 457.

CONCLUSION

Anyone interested in gaining more knowledge about his or her retirement plan should spend some time going through the various articles available on these sites. The articles are easy to read as well as entertaining. You also have the opportunity to join in discussions with other members of the community and talk about issues related to retirement planning.

Technical Editor Jayanthi Gopalakrishnan plans to retire as soon as possible and not let anyone know where. In the meanwhile, she may be reached at Jayanthi@Traders.com.