GeekMBA360

Many of us who work in the high tech industry have been wondering how the current financial crisis will affect our lives.

Well, if you haven’t checked your 401K portfolio, please take a close look.

News came out yesterday that one of the first and largest money market funds has put a seven-day freeze on redemptions after the net asset value of its shares fell below $1. Money Market fund is considered one of the safest forms of investment since they largely invest in high grade government and corporate bonds. Unfortunately, several large Money Market funds have put money into Lehman Brother’s bonds (or the now junk bonds from other shaky financial institutions.)

Your 401K money in Money Marketing fund might not be safe. You should really take a close look.

Update 10/9/2008: Please read my update on Your 401K Account and U.S. Treasury Temporary Guarantee Program for Money Market Funds.