If you are participating in a retirement plan at work, are you changing your activity because of the pandemic? Most participants are not, even though the COVID-19 market was a roller coaster between Feb. 19 and March 23. One-day declines and advances in the S&P 500 index made it to the top 25 list of biggest up and down days since the Great Depression.

Nonetheless, only 2.2% of retirement plan participants (401(k)s and other defined contribution plans) stopped contributing to their plans in the first three quarters of 2020, according to the Investment Company Institute (ICI), a major trade association that represents the regulated investment fund industry. That compares with 5% during the first three quarters of 2009, just before the end of the financial crisis market that started in October 2007 and ended in March 2009.

“Americans overwhelmingly continued saving for retirement through defined contribution (DC) plans during the first three quarters of 2020, undeterred by the economic downturn brought about by the COVID-19 pandemic,” according to ICI.

This conclusion is based on ICI’s “Defined Contribution Plan Participants’ Activities, First Three Quarters of 2020” study released Nov 19. The study involved tracking record-keeper data for more than 30 million retirement plan participants (401(k) and DC plans).

What’s important about the data is that it shows participants are not reacting to the tremendously volatile time between Feb. 19 and March 23, the one-month period that created the shortest bear market measured by S&P Capital IQ. The S&P 500 index started this short period at 3,386 (Feb. 19) and ended on March 23 at 2,237, with a loss of 33.9%.

Since 1929, the average bear declined about 38%, lasted 489 calendar days and took 42 months to break even. If you start the count in 1946, the average bear declined about 33%, lasted 389 calendar days and took 24 months to recover. The COVID-19 bear lasted 33 calendar days, declined about 34% and took only five months to recover. But, what a ride we experienced during that time: a decline of 12% on 3/16/2020; a decline of 9.5% on 3/12/2020; and a 7.6% decline on 3/09/2020, landing these three in the worst 25 list of daily declines since the late 1920s, according to Sam Stovall, chief investment strategist at CFRA, an independent investment research firm. Two up days made the top 25 list of biggest daily advances: 3/13/2020 (+9.3%) and 3/24/2020 (+9.4%).

For context, 401(k) participants represent a huge demographic -- we’re talking about millions (58 million) of active 401(k) participants and millions more former employees and retirees, according to ICI. And, importantly, they are thinking ahead. As they should.

“The data again show the long-term mindset of retirement savers,” said Sarah Holden, ICI senior director of retirement and investor research. “Even in a year of unprecedented economic volatility and increased financial hardship, savers clearly view their DC account as a special pot of money earmarked for retirement, which is only tapped as a last resort. Retirement savers consistently demonstrate that they are in it for the long haul and tend to stay the course.”

Music to my ears: As a proponent of financial literacy education, that’s very good news to me.

ICI has been tracking DC plan participant activity through record-keeper surveys since 2008. This update provides results from ICI’s survey of a cross section of record-keeping firms representing a broad range of DC plans. Visit ICI’s 401(k) Resource Center (ici.org/401k) for more information, and you can read the ICI research report at tinyurl.com/yyocu579.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

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When the investing apps Robinhood, Acorns and Stash came on the scene, a new type of saver emerged, one who could save money when making purchases (a microsaver). Then came the microinvestor, a saver who could buy small-dollar amounts of shares of stocks.

Microinvesting enables the purchase of less than a full share of a stock. Someone who had only $50 to invest could purchase a fraction of a share of, say, Apple, even though a full share costs more (about $119, as of the close on Nov. 12).

A few days ago (Nov. 9), the U.S. Securities and Exchange Commission issued an Investor Bulletin (“Important Items to Consider Before Investing in Fractional Shares”) on the subject -- it’s worth a read.

Fractional share investing is innocent enough. What did the SEC want investors to know?

Fractional shares are offered only by some, not all, brokerage firms, with Fidelity Investments and Charles Schwab Corp. among the recent entrants to the field. That limits firms that will execute fractional share buy-and-sell orders -- and the firms that will receive fractional shares if you intend to transfer your account to another brokerage firm.

When you research firms that offer fractional shares, find out about these potential differences.

1. Can I buy and sell any stocks, or are there limits on the type of stocks and other investments that are eligible for fractional share trading on your platform?

2. What are the details of order execution? Are trades executed in real time? Or do you aggregate orders for execution after collecting orders from other buyers and sellers?

3. Are there specific order types that are available (or limited) to buy or sell fractional shares? Some firms only allow market orders, according to the SEC.

4. Do minimum dollar amounts apply? For example, Schwab has a minimum order of $5, while Fidelity’s minimum order is a penny, and Robinhood’s is $1. (Be sure to double-check these amounts online; they may change.)

5. What happens to dividends earned on fractional shares, and what about corporate actions? According to the bulletin, fractional share owners do receive dividends and participate in other corporate actions such as stock splits or reverse stock splits.

6. Do I have voting rights? That depends, based on the brokerage firm, according to the bulletin.

7. Is there a charge for trading? Some firms charge. Some don’t. You’ll have to ask.

8. Can I sell at any time? The bulletin points out that liquidity may be limited: “Some brokerage firms have indicated that they do not guarantee the liquidity of fractional shares, even if fully shares of the stock are liquid.” Be sure to find out.

For more information, read the full SEC Investor Bulletin at tinyurl.com/yx9a4jkq. Also, the Financial Industry Regulatory Authority (FINRA) provides information on microinvesting at tinyurl.com/yxqdmsal.

Because the offering of fractional share investing can lead to more investors, microinvesting is a clear win for the young or new investor. But be sure to do your homework first.

On another note, by popular demand, I am offering a repeat of my free virtual presentation “Investing in a Coronavirus Stock Market,” on Thursday, Nov. 19, at 10 a.m., sponsored by the Greenwich (Connecticut) Library. To register, go to tinyurl.com/yywjlxa5 or contact Yang Wang, 203-622-7924, ywang@greenwichlibrary.org. This is part of the library’s financial and investment programs.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

A reader of this column wants help with stock research tools; he is particularly interested in free or low-cost resources.

If I were a do-it-yourselfer, I would turn to nonprofit organizations, such as the American Association of Individual Investors (AAII) or BetterInvesting, for low cost, value and their culture of education.

Both of the organizations I’ve mentioned are focused on education, which means a lot to me. Their materials are intended to help you become a more informed investor.

On its website (aaii.com), the AAII offers a number of free products, including webinars. You also can look up any stock for free by entering the company name or stock ticker symbol in the search bar at the top.

Members have the unique advantage of studying pre-built screens that replicate the screens used by noted investors, such as Warren Buffett, Benjamin Graham and Geraldine Weiss, as well as other screens based on performance and on risks and returns, among other themes.

This alone is worth the price of membership, which is decidedly inexpensive. The annual “basic” membership is $49. There also is a “plus” membership at a higher cost. You can find out more about the plans here: aaii.com/join/indexc.

But before taking the plunge, you can sign up for a 30-day trial for a mere $1. The trial will allow you to explore and set up your own screens. It may take you the full 30 days to fully appreciate AAII’s resources.

BetterInvesting was previously known as the National Association of Investment Clubs. The site (betterinvesting.org) also offers free and low-cost educational materials.

BetterInvesting is known for its Stock Selection Guide (SSG). The SSG “organizes a company’s historical financial data to help investors identify the characteristics of quality growth companies and enable plotting of potential future growth from historical trends.” You can take a look at an SSG example at tinyurl.com/yxce68hv.

To get a better feel for BetterInvesting’s resources, sign up for a free three-month trial at tinyurl.com/y4mnu3kz. When you click through to sign up, note the red lettering that shows the membership at zero dollars. (On first glance, the shopping cart shows $19.99, but then goes to zero after applying a 100% discount.) For more information about membership, explore the website.

Once you sign up, you can register for a StockUp, which is a study on a particular stock. For example, on Nov. 10, Costco Wholesale (COST) is the subject of an online program sponsored by BetterInvesting. The program will include a review of the company’s business practices and financial reports. You’ll be able to see how to complete an SSG guide as well.

Armed with the AAII and BetterInvesting, there is no question that you will be a better-informed investor.

Finally, if you are a beginning investor, you may be interested in a free virtual presentation I am giving as part of the Investment Basics series sponsored by the Greenwich (Connecticut) Library. The topic: “Why a Portfolio Review Is Important and How to Do It.” The date and time: Thursday, Nov. 12, at 10:00 a.m. To register, go to tinyurl.com/yy3fu4qp or contact Yang Wang, 203-622-7924, ywang@greenwichlibrary.org. This is part of the library’s financial and investment programs.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION