Daily Dash - June 13, 2008

June 13 , 2008

The Latest Business Headlines from WWJ Newsradio 950

4-Day Work Week | Oakland County Commissioners have unanimously approved a plan to allow county workers to switch to a four-day work week to save money on gas. | Story

Foreclosure Applications Up | Filings increased from a year earlier in all but 10 states. Nevada, California, Arizona, Florida and Michigan had the highest foreclosure rates. | Story

Chrysler To Lease Plant | Chrysler is crafting an unconventional pact to lease part of an Indiana transmission plant and some of its workers, The Wall Street Journal reports. | Story

Hummer Dealers Uneasy | Hummer dealers around the nation are now reeling from the news that General Motors Corp. may be thinking about selling the brand. | Story

Water Protection Urged | Two former Michigan governors prodded legislators Thursday to prevent large-scale uses of Michigan water that would not be in the public interest. | Story

Stocks Close Higher | Stocks rose Thursday after a volatile day of trading, as continued fears about Lehman Brothers Holdings put the brakes on a retail-sales rally. | Story

INVESTORS ARE MAKING COSTLY 401(k) MISTAKES

Americans are making a lot of errors with their 401(k) plans, according to a new study by investment advisory firm Financial Engines Advisors. In addition to not saving enough and missing out on company matches, many investors' 401(k) plans are not well diversified or are too full of their company's stock.

While some participants are taking full advantage of their plans, the study found that those with lower salaries and lower plan balances and those who are closer to retirement tend to make the most costly mistakes.

33% of active participants fail to invest enough in their 401(k)s to ensure that they receive the full matching contribution from their employer, which means they're leaving free money on the table. And while 60% do save enough to receive the full employer match, they're still saving below the IRS or 401(k) plan limits. Only 7% of active participants save enough to come within $500 of the IRS or plan maximum allowed, the study found. More...

Fewer Workers Are Taking Advantage Of Company 401(k) Plans

After a significant rise in the ‘90s, participation in 401(k) plans has dropped off in recent years, according to a report from the nonpartisan Employee Benefit Research Institute.

The EBRI study found that Individual Retirement Accounts, or IRAs, have become the largest single vehicle of retirement assets in the United States. But that’s because of rollovers from other tax-qualified retirement plans, not new contributions.

Most new IRA contributions are going to Roth IRAs, which allow the investor to later make tax-free withdrawals. "There has been a slowing," said Craig Copeland, a senior research associate at EBRI. "We don't yet know whether auto-enroll will reverse that."

More...

MORE NEWS

TEACHING YOURSELF HOW TO INVEST: The stock market has performed badly of late. All the major indexes are down from their highs, as the market has buckled under the pressure of the housing meltdown and the credit crunch. More...

OIL'S SPIKE FUELED BY SPECULATION?: As the price of crude oil keeps jumping, so has the amount of finger-pointing at factors in the seemingly relentless rise.What's behind it? Have the law of supply and demand and other usual economic forces given way to speculators bidding up the price for personal gain? More...

BUYING RENTAL PROPERTY IN A DOWN MARKET: Prices on property are dropping in many areas. While that is bad news if you're looking to sell, it puts the ball in your court if you're interested in buying. Buying rental property in a down market can be a lucrative investment but there are some factors you should consider before you jump in. More...

CRYING IN YOUR BEER OVER ITS PRICE: Champagne taste on a beer budget? Think again! Just like the cost of food, some beer prices are skyrocketing, and you can expect to pay more for your favorite brew this summer. More...

WORLDWIDE AUTOMOTIVE REPORT PODCAST: WWJ Newsradio 950's Jeff Gilbert takes a look at how car sales are going to shape up in the second half of the year.

YOUR WEEKEND

V98.7 SMOOTH JAZZFEST: Kenny G, Mindi Abair and Average White Band are among the stars at the 10th Annual V98.7 Smooth JazzFest. It's three days of great sounds on "the Green" in front of the Southfield Civic Center. More...

EYESON DESIGN: Now in its 21st year, the 2008 EyesOn Design car show will display over 200 vehicles from the past, present, and future, with the theme for this year being Innovative Technology and Design. The fundraiser for Detroit Institute of Ophthalmology programs celebrates automobile design. More...

8 DAYS IN JUNE: The Detroit Symphony Orchestra launches 8 Days In June at the Max M. Fisher Music Center, designed to challenge traditional ideas about classical music and the role of symphony orchestras today. The second annual festival will explore the theme "The Power of Change." More...

MORE IDEAS AT GREATSTUFF For even more things to do, visit GreatStufftodo.com, southeast Michigan's online resource for creating a better weekend and making the most of your spare time. The GreatStuff Web site and weekly e-newsletter are produced through a partnership between ArtServe Michigan, the Detroit Free Press and WWJ Newsradio 950.

Note: While the Daily Dash editor, James Melton, is on vacation, this is 'The Dash Lite.' James will return along with your complete Daily Dash newsletter on Monday, June 16.