Sound Financial Advice by David McPherson, founder of Four Ponds Financial Planning LLC, Falmouth and Mansfield, Mass.

Time to dump that fund?

This week for ABCNews.com, I consider a reader's question about when is it time to dump a lousy mutual fund. The answer, in part, is to be sure you're making the right comparisons. 

Obama launches retirement savings effort

President Obama over the Labor Day weekend announced a series of initiatives aimed at boosting retirement savings. The effort amounts to a series of rule changes adopted by the IRS such as allowing automatic enrollment in SIMPLE IRA plans offered by small businesses.

I applaud the president's focus on the retirement issue, but in my column for ABCNews.com this week I explain why the announcement left me underwhelmed.

Let's hope there's more to come on this issue.

Student Loans vs. Retirement Savings - ABC News

This week for ABCNews.com, I field a reader's question about whether retirement savings should be used to pay off a student loan. The short answer: No. Read why.

In the same column, I also answer a question about contributing to a 401(k) plan after age 70.

Using 401(k) funds to pay off mortgage

In today's ABCNews.com column, I respond to a reader's question about whether 401(k) funds should be used to pay off a mortgage after a layoff. My answer in this case: Not now. I explain the ugly tax consequences of taking a big lump sum withdrawal to pay off the mortgage. My advice is to use non-retirement savings first if the family's current income is not enough to meet the mortgage payment and then non-retirement savings if necessary.

If the 401(k) funds are needed, then small monthly withdrawals are better than a single lump sum withdrawal.

Laid off with 401(k) loan due

In today's ABCNews.com column, I explain the rules requiring most laid off workers to pay off any money due on a 401(k) loan or otherwise get hit with taxes and penalties. The column responded to a Michigan woman's question about why she would be classified as in default if she doesn't come up the money to pay off the loan she borrowed from her former employer's 401(k) plan.

During the course of my research, I came across a quite interesting paper from the Federal Reserve that challenges the conventional wisdom among financial planners that taking out a 401(k) loan is always a bad idea. I may be writing more about this paper in the coming weeks.

Four Ponds in the news: 401(k) investing

The Cape Cod Times yesterday featured my comments on 401(k) investing for a Sunday story on the front of the business section. One line from the article:

“It’s the perfect time – you’re buying shares at a very low price,” said David McPherson, owner of Four Ponds Financial Planning in Falmouth. “When there’s a rebound, you’ll benefit greatly.”

Click here to read the article in full. 

401(k) withdrawal options

Today's ABCNew.com column takes a look at options for withdrawing 401(k) funds, including "in-service rollovers" to an IRA.

Last week's column touched on some lesser-known programs in the recent economic stimulus package meant to boost family finances. These include a $250 payment for Social Security recipients, a tax credit for workers and a tax break on unemployment benefits.

On the radio with NPR's "Here and Now"

As a result of my recent ABCNews.com columns, I had the opportunity yesterday to appear on the National Public Radio program "Here and Now." I discussed some of the things people should be doing in light of the current economic and investing climate. I also reviewed some of the government programs that have emerged to help individuals cope with these tough times.

"Here and Now" is produced at WBUR in Boston and airs on NPR stations across the country from Alaska to Alabama. 

Click here to listen to the interview.

When your employer halts 401(k) contributions

By one count, more than 60 employers have reduced or stopped contributions to employee 401(k) accounts. That's not good in a time when the traditional pension plan has all but disappeared from many companies.

In response, I offer seven suggestions in today's ABCNews.com column on how workers might cope with the damage done to their retirement portfolios by this latest business trend.

Playing it too safe in a retirement plan

For today's ABCNews.com column, I address a question from an upstate New York woman who recently redirected all of her retirement plan contributions into a conservative, stable-income fund. Basically, my advice to her was that she consider investing the money in a mix of the available stock, bond and stable-income funds given that she has 17 years until retirement.

In my view, she's missing out on an opportunity to buy shares at reduced prices.

I've been waiting for skeptical readers to tear me to shreds in the comments section of the ABCNews.com site, but it has happened yet. I'm sure it's just a matter of time.