My husband is in the PA State Employees Retirement Fund and I was wondering if anyone knew anything about it. We know it is a deferred comensation program (found out we can't borrow against it unless we close it).

Just curious as to whether we should (or even could) switch to a 401K everyone is talking so well about. At 40, would it be worth it to begin a 401K somehow?

Just now are we concerned about this big thing called "retirement" and are finding out how little we know or are prepared.

Hello AcornNut,

A 401(k) Plan is an employer-sponsored retirement plan and is typically set up by companies in the private sector for their employees. Government employees (like your husband) are covered by other retirement funds such as one he is participating in, so it's likely that a 401(k) is not available to him in addition to the State Fund.

Perhaps what you're thinking of is an IRA (Individual Retirement Account) which you are entitled to set up in addition to an employer's plan. In fact, both of you can open IRAs, even if only one of you is employed. It's a very simple process and you can learn how to do it in this 60-second guide to opening an IRA at:
http://www.fool.com/60second/ira.htm

If you're just now becoming concerned about this "big thing called retirement", welcome to the club! Lots of us are in the same place -- maybe it has something to do with being over 40? The first thing to do is relax and take time to learn all you can before jumping into any investments you don't thoroughly understand. If I may, I'd like to suggest The Motley Fool Roadmap to Retirement Online Seminar
Pick the date when you want to retire and develop your own plan to get you there! The best thing is, you can start this seminar any time and work at your own pace.
http://www.foolmart.com/Shopping/Product_View.asp?PRODUCT_ID=MF2600_01&REF=csbo03122

Cheers,

TMF Jeanie
Community Fool