Employer 401-K Bait & Switch...................???

[Faast Ed]

With companies like Ford, GM and HD selling so low, you're buying a lot of stock with minimal investment.

There is no indication that the markets will return to previous values, as a matter of fact stocks can do worse. Good chance of many more bankruptcies this year.
The stock market "heyday" is gone,..... something for the history books.

Anything you invest now will be more like savings, your benefit will be more geared towards anything your employer contributes (with you). 
The "growth" part of the funds won't be like "the good old days" of recent past.

[mackdog]

Some plans also offer a guaranteed return usually in the low range like only 4 or 5 percent.  Not much when the market is doing good but it's better than watching it slowly dwindle down to nothing, like one of mine is doing now.  That 4 or 5 is still more than the one -half of one percent you get in your friendly local bank or credit union savings account.  That's darn near nothing!!!  Also, as someone else mentioned, the government has some pretty hard and fast rules regarding withdrawls on these accounts.  They are meant to get you to put $$ aside to retire on, not to withdraw every time you need a little extra cash, and start up again, that's,why the penalties.  It's definitely not easy to sit an watch it tank, it'll go back up, if you're young enough to wait for it.  MD

[Princess Butt]

Where you invest your money has a lot more to do with how close you are to retirement. If you're under 40, you should have most of your money in stocks. If you're within 5 years of retirement, then you want it in something like Treasury Bills, where the long term return is much lower, but at this point, you're preserving your money.

BnEUC