User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


53° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

KELOLAND.com | Sioux Falls News & Weather, South Dakota News & Weather, Minnesota and Iowa News

[0] My Saved Articles
Find local businesses
on the KELO Pages!

 

Money Matters:BP & Your 401(k)

June 14, 2010, 9:50 PM by Angela Kennecke

Money Matters:BP & Your 401(k)
SIOUX FALLS, SD - Under pressure from the White House, it appears BP is willing to set up a massive compensation fund for victims of the oil spill. BP has already paid out $1.6 billion in response to the spill and has seen its stock value plummet by $90 billion.

BP stocks fell again Monday, dropping nine percent on news that the company's board was meeting to decide whether to suspend millions of dollars in dividends to investors. And while you may not think one stock could affect your 401(k), it turns out in the case of BP it can.

Even though BP makes billions in profits, the oil spill in the gulf is making investors nervous. And the drop in the company's stock price could have a greater impact on your 401(k) than you may think.

"But in effect what happens is that in a 401(k) plan you may have a diversified portfolio with 4 to 5 different positions. But what happens is BP, British Petroleum, may be represented in each one of the mutual fund positions," Financial Planner Neil Graff said.

And now BP is under pressure not to pay out its dividend to investors which was more than $10 billion last year.

"If the dividends are not paid out the overall performance of BP impacted to a greater degree. Dividends not paid out there will be a decrease in BP price. The downside to no dividends to offset the decline in BP stock price could have a major impact on people's performance," Graff said.

But the company's main risk right now is the liability it faces in the environmental disaster.

"I think the jury is still out on BP. It's paid almost $2 billion in reparations to offset the environmental disaster. We don't know yet the long term implication, what dollar amount might be lurking out there in liability for BP and it could have a major impact on the long-term viability of BP," Graff said.

The Dow finished 20 points lower today, but not because of BP. Moody's lowered its rating on Greece's debt to "junk" status, prompting investors to take money out of the market.

Previous Story

Next Story


Sponsored
Find Local Businesses on KELO Pages!

You may also like

ISIS 'Kill List' Said To Include Target In Rapid City

3/24/2015 2:30 PM

CBS News confirms ISIS has a target in South Dakota.

Full Story
Family: Crow Creek BIA Superintendent Stabbed At His Office

3/25/2015 4:36 PM

An investigation is underway into the stabbing of the Crow Creek BIA Superintendent.

Full Story
Empire Mall Burger King Closes

3/22/2015 2:30 PM

The Burger King inside The Empire Mall in Sioux Falls is closing Sunday, March 22.

Full Story
Four Arrested On Drug Charges, Accused Of Making Hashish Oil

3/23/2015 1:32 PM

Four people are accused of making drugs just a block away from from the Clay County sheriff's office.

Full Story
Huron Man Dies In Rollover Crash

3/22/2015 11:42 AM

A Huron man was killed Saturday morning in a rollover crash at the intersection of 216th Street and SD Highway 45 in Hand County, near Miller.

Full Story


Events