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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.

Since their introduction in 1997, Roth IRAs have become increasingly popular. Unlike traditional IRAs, contributions to a Roth IRA are not tax-deductible, but earnings grow on a tax-free basis if held for the required amount of time. The ability to have completely tax-free income at retirement is a big plus, especially for young people.

The Roth IRA rules also allow for someone with a traditional IRA to convert it to a Roth IRA. Prior to 2010, only those with incomes under $100,000 could do a Roth conversion, but now anyone can convert their traditional IRA to a Roth. However, just because it is now permissible doesn't mean that it's a wise financial decision for everyone.

In this week's E-Letter, I'm going to discuss the pros and cons of converting a traditional IRA to a Roth IRA and when such a conversion may be feasible. I'll also let you in on a key factor in the decision to convert and how politics may actually come into play. I think you'll find this discussion very interesting.

Target-date funds have been touted as an excellent alternative for 401(k) plan participants who either can't or won't do the work necessary to build their own retirement portfolios. These funds offer a one-stop shopping approach by offering an automatic asset allocation scheme within the fund that is based on a future retirement date. However, like most one-size-fits all solutions, these funds have some serious drawbacks. In fact, some of these funds did so poorly in 2008 that government regulators are now considering special allocation and disclosure rules. This week, Mike Posey will fill us in on the pros and cons of target-date funds and why they may not always be the best alternative for investors.