401k

Fidelity said this week that our 401(k) account balances were up 8 percent on average in the first quarter of this year. But the major stock market indexes were up even more than that. So are 401(k)s really the right ticket to a happy retirement?

I have a Roth IRA, a retirement account from a previous job and a mutual fund. Shall I also begin a 401(k) with my new employment? Ivy, El Paso, TX

Yes, public pension plans are ripe for reform. But overhauling these plans is an opportunity to improve pension design for everyone.

I am ready to convert my 401(k) into an IRA. I am 61 years old and want to start taking annual distributions. The current balance in the 401(k) is $562,000 and I would like to withdraw 4 percent annually. Fidelity Investments is recommending a Guaranteed Annuity of $400,000 and the remaining in a managed portfolio fund (balanced). The annual fee for annuity is 1.90 percent of the balance and the managed portfolio 1 percent. These are the only fees. There is a 2 percent penalty if withdrawn within the first 5 years. Is this a good option, or should I keep the money in moderate conservative index funds? Emma, Las Cruces, NM

"A steadily growing portion of the workforce will continue to work at least part-time well beyond the 'normal' retirement age of 65," says a senior research fellow at the New America Foundation.

Americans share little confidence in their ability to afford a comfortable retirement. The 22nd Retirement Confidence Survey by the Employee Benefits Research Institute is stagnant at historically low levels.

My company just added a Roth 401(k) investment option to our retirement plan. I am currently saving 6 percent of my salary in my 401(k), with a 3 percent match from my company. (This is the maximum match.) Now that there is an option to invest in the Roth, with the same match available, I am not sure how to adjust my investments. I don't have any other retirement savings besides my 401(k). I have talked this over with a few of my friends and none of them seems to know the answer, either. Thanks for your help! Priscilla, Greenville, N.C.

To retire right these days, pension expert Olivia Mitchell encourages clients to look at the bigger picture.