Recommended Reading: PIMCO on Diversified Portfolios for Retirement Investing

The persistent problem of savers pulling money from their 401(k) plan has grown worse since the financial crisis, heightening concerns about the effectiveness of these plans as a retirement tool. One in four American workers with a 401(k) or other defined contribution plan tap their retirement account for current expenses, a new study shows. This so-called “leakage” reached $70 billion in 2010, equal to nearly a quarter of all contributions that year.

The persistent problem of savers pulling money from their 401(k) plan has grown worse since the financial crisis, heightening concerns about the effectiveness of these plans as a retirement tool. One in four American workers with a 401(k) or other defined contribution plan tap their retirement account for current expenses, a new study shows. This so-called “leakage” reached $70 billion in 2010, equal to nearly a quarter of all contributions that year.

Ah, the new year: a time for us all to make grand plans. We’ll quit smoking, lose ten pounds, be nicer to the neighbors, and finally start saving for retirement. Alas, studies show that one-quarter of all New Year’s resolutions are broken in the first week — and the rest usually fall by the wayside in the days that follow. This year, though, why not choose to follow through on at least one of your resolutions? Make this the year you finally figure out your retirement savings.

Ah, the new year: a time for us all to make grand plans. We’ll quit smoking, lose ten pounds, be nicer to the neighbors, and finally start saving for retirement. Alas, studies show that one-quarter of all New Year’s resolutions are broken in the first week — and the rest usually fall by the wayside in the days that follow. This year, though, why not choose to follow through on at least one of your resolutions? Make this the year you finally figure out your retirement savings.

My preference is for a lower use of bonds than the normal portfolio balancing strategies use. I just find the risks greater than the benefits. This preference increases as yields decline. Given the historically low interest rates we have been experiencing the last few years (and low yields even for close to a decade) I really believe bonds are not a good investment. Now for someone approaching or in retirement I do think some bonds are probably wise to balance the portfolio (or CDs). But I would limit maturities/duration to 2 or 3 years.

An offhand but important remark from Felix Salmon: