Savings & Pensions

National Center For Policy Analysis - Is The Matress A Good Place for Money?

In fall 2008, the stock market suffered a severe decline.  Fear prompted a number of individuals to suspend contributions to their 401(k) retirement accounts.  They reasoned that holding the money and having it retain its face value was preferable to putting it in a money-losing investment.  Even employees who were invested in bonds, rather than equities, stopped contributing. Hiding money in a mattress was common following the 1929 stock market crash.  In today's world, a worker simply stops contributing to his 401(k).