Serendipitously, law firm employees may have fared better than corporate employees in maintaining the value of their self-directed pension plans during the current stock market crisis. A study published early this year by a major broker-dealer showed that employees investing their pension funds without the aid of a financial advisor are more likely to invest their assets in “low yield, ultra safe instruments like CD’s and money market accounts.” The report also noted that law firm employees also tended to have less stock in their investments because, unlike their corporate counterparts, they are not offered shares of stock of their companies. By default, many corporate employees’ defined contribution plans are heavily invested in their company’s stock. 

An informal survey of law firm HR Directors and Administrators tells us that lawyers seem to have racked up larger losses than staff members because they tend to have smaller pension accounts and because they tend to be more conservative in their investment choices.