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One of the more common questions we get at my firm is "How can I get active management strategies in my 401(k) plan?" It's a good question since many participant-directed plans such as 401(k)s, 403(b)s and 457 plans are sold by brokerage and mutual fund companies who have no interest in providing strategies that can go to cash to protect retirement assets during market downturns.

Fortunately, we now have two ways that 401(k) participants can access active management strategies, depending upon the structure of their plans. This week, I'm going to highlight each of these alternatives, one of which virtually anyone can use to put the power of active management in their corner.

First, however, I'm going to talk about why fresh strategies are needed in many 401(k) plans. Recent surveys have shown that Baby Boomers are woefully unprepared for retirement. While this is nothing new, it may shock you to know that about 25% of Boomers say that they don't think they can retire...EVER! This week's E-Letter is a must-read for anyone with significant 401(k) balances.

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Since I began writing this E-Letter in 2002, I have always maintained that politics and investments are joined at the hip. The political "solutions" coming out of Washington to address the subprime debt crisis and resulting credit crunch should be more than enough to prove this thesis. This week, I'm going to discuss a political issue where the tie to investments may not be as evident, but it's there. The issue is the potential for liberal judicial appointments during the Obama presidency, and how these may change the legal landscape. President-elect Obama is already on record as supporting the "living document" interpretation of the Constitution, and so will likely favor jurists who share this viewpoint. This could mean more "legislating from the bench" and other forms of liberal judicial activism. If so, all I can say is hold onto your pocket books!...