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When Gary Laursen began working in the transportation industry four decades ago, he had a pretty good idea of what it would take to retire comfortably.
The 62-year-old former account executive for a trucking company, who lives with his wife in Spokane, Wash., says he began setting aside a piece of each paycheck the day he started working. His careful planning paid off. After retiring two years ago, he played golf, spent more time with his three grown children and grandchildren and had enough socked away to pay the bills.
“I felt like I had plenty to retire,” he said. “We’re not a wealthy family by any chance. We’ve lived a very nice life, and our home is paid for and we don’t owe anybody any money.”
But as the financial markets have ravaged retirees’ savings and investments, Laursen has put his retirement on hold. On top of a big hit to his retirement savings, his former employer just eliminated health care coverage for Laursen and his wife. So he’s gone back to work as a consultant, helping former clients with shipping logistics.
“I either make more money doing what I’m doing and work longer, or I spend everything I’ve got and let the system take care of me later, which I don’t like,” he said.
And with the economy and financial markets showing little sign of hitting bottom, it’s not at all clear when — or whether — Laursen will be able to return to the retired life he worked 40 years to build.
“I’m 62,” he said. “I don’t have time to build it back up. So I’m stuck.”
Millions of Americans are confronting the same stark reality after the collapse of the stock market destroyed trillions of dollars of retirement savings and forced those in or near retirement to make serious adjustments to their plans. For some, that has meant abandoning the idea of retirement altogether.
Jeanne Pecora, a single, 63-year-old paralegal in Virginia Beach, Va., is still working. But she’s already having trouble making ends meet — let alone setting aside more money to rebuild her battered retirement nest egg, which she says lost 70 percent of its value in the past three months.
Her 6-year-old car spends more time in the repair shop these days. To cut costs, she’s cut back on eating out for lunch or dinner by making meals at home that she can stretch for two or three days with leftovers. She’s switched to cheaper Internet and cellphone services, and cut back on snacks for her two dogs.
“I plan to keep working until I’m 70 if I’m still in good health, and if no one pulls the plug on older employees,” she said. “But I do not know what will happen if or when my health fails.”
For the millions of newly retired and nearly retired, the financial market collapse couldn’t have come at a worse time. Those who have watched their savings evaporate now face stark choices: either cut back spending or put off retirement — or both.
Even before the market downturn picked up speed in September, some one in five people had put off retirement, according to a survey by AARP. More than six in 10 workers 45 and older said they were delaying retirement and expected to work longer; nearly seven in 10 said they’ll spend less once they reach retirement; according to the survey. About a quarter said they’re putting in more hours at work to try to make ends meet.
“Their standard of living has been lowered,” said David Certner, legislative policy director for AARP. “They’re cutting back on their vacations and the number of times they’re going out to dinner, and other travel and entertainment and is lower. So they’re in a tough spot.”
Though the recent economic turmoil has thrown the problem into sharper focus, older workers have been losing ground to a secure retirement for several decades. During that period, American employers — with the help of changes in the law and tax subsidies encouraging private retirement savings — have shifted the burden of saving and managing investments to individual workers.
But as companies turned away from providing traditional pension plans that paid a “defined benefit” for life — typically a monthly check — the growth in coverage by individual plans hasn't kept up. Since 1992, there has been an overall drop in all retirement coverage, according to a 2006 paper by Stephanie Costo, an economist with the Bureau of Labor Statistics.
That drop in retirement coverage has been matched by a rise in the number of older workers who remained in the work force later in life for a variety of reasons. It’s not clear whether people are working longer because they want to or because they have to. But after a steady decline, the retirement age has been rising over the past few decades.
In 1985, some 15 percent of men and fewer than 8 percent of women remained in the workforce after age 65, according to a paper by Georgetown University demographics professor Murray Gendell. By last year, 34 percent of men and 26 percent of women had a job or were looking for work. The same pattern holds for workers 70 and older.
Employers offering traditional defined-benefit plans also have moved to shift risk to their employees by expanding the option of lump-sum payments — which removes the cost of retiree benefits from their books. In 1992, only 13 percent of employers offered lump-sum payment options; by 2005 nearly half of employers were doing so.
But while many older workers who had expected to retire now find they need to keep earning a paycheck to survive, it’s getting harder to do so. The national unemployment rate jumped to 6.5 percent last month from 4.8 percent a year ago. The rate is lower among older workers, but joblessness is rising among every age group.
Retirees have suffered through market downturns before. The conventional wisdom from most financial retirement advisors was that investing in stocks would help offset the corrosive impact of inflation on fixed-income savings like bonds. Like many retirees, Pecora, the paralegal, avoided selling her stocks because past market downturns have eventually reversed course.
“The last time (my retirement fund) fell that far was on Sept. 11, 2001, but I eventually got it all back by September 2007,” she said. “Now it's gone again.”
Given the scope and breadth of the turmoil in the global financial markets, it’s not at all clear how long it will take for investors like Pecora to recoup their savings.
That’s why financial advisers have long recommended a gradual investment shift, in the decade or so before you plan to retire, moving money out of riskier stocks into safer investments like money markets or bonds.
Investment firms catering to small investors have developed specialized "life cycle" funds, tailored to age and expected retirement date, that gradually shift assets to avoid the risk that stock holdings will plummet shortly before a planned retirement date.
But the traditional advice became more difficult to follow in the past decade. Historically low interest rates meant that returns on safer, fixed-income investments have barely kept up with inflation, and in some cases have fallen behind. So many older investors accepted more risk in the stock market.
“With some of the low returns on bonds, it’s not as if people had a lot good options,” said Certner.
Certner says some retirees are also finding out the hard way the dangers of investing too much of their 401(k) savings in their own company’s stock. When their employer hits hard times, they face a double risk: Their company stock may go down sharply just at the moment when they are facing a layoff. (Certner and many financial advisers recommend that employees keep no more than 10 percent of their savings in their own company's stock.)
It remains to be seen whether the current collapse of millions of individual retirement plans prompts changes in the government-subsidized, individual retirement system that has become the primary safety net for most Americans. Among the proposals under consideration are moves to increase participation by making individual retirement plans “automatic” and to provide incentives or requirements that expand the number of employers who offer company-sponsored plans and make contributions.
But the problem didn’t arise overnight, and it won’t be solved quickly. In the meantime, those who are near or in retirement have been left to cope as best they can until the economy and financial system can get back on its feet.
“It’s been a nice ride,” said Laursen. “But I think we all knew that something was going to happen eventually.
Like many msnbc.com readers, Laursen admits to some resentment that, having played by the rules and managed his money wisely, he’s caught in a predicament that wasn’t of his own making.
“I am very upset that I managed my money, bought only what I could afford, only to be penalized for making wise choices,” he said. “While others bought when they should not have, spent well above their income and now get bailed out, I am left wondering about survival.”
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 | Answer Desk: Cash out my 401(k) or hang on? | Associated Press | Sun Nov 23 | 34 |
 | 'Longevity risk': When retirees outlive savings | msnbc.com | Fri Nov 21 | 1 |
| Retirement dreams give way to despair, anger | Associated Press | Wed Nov 19 | 369 |
| Strapped for cash, some tap retirement funds | Associated Press | Tue Nov 18 | 22 |
| Investors pay dearly to tap retirement funds | Associated Press | Mon Nov 17 | 1 |
- Public Discussion (210)
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{"commentId":4122734,"authorDomain":"lorschweitzer"}
Wow, Therer are about 50 things going wrong here.
1. Who cares that this guy is 62 and has to go back to work. He's probably going to live to be 80. He can work until he's into his 70s anyway.
2. We have to bail out the auto industry. We still have to have tanks for wars, and we need to be able to make them in the US. It's not pretty, but we have to.
3. We should never, never give our money away without the stipulation that no one gets a bonus for any reason, and no salary over 6 figures will be paid, and no matter what the union contracts say, no payments shall be made to retirees under the age of 65. They can go back to work, just like the rest of us that are footing the bills.
4. We have to invest federal money to get ourselves out of this mess. Other federal money needs to slow down. I've been a staunch supporter of the war on Iraq, but we need to cut the spending, so let's cut it.
5. This is probably the most important thing we have to do. Cut the COLAs NOW. No more cost of living adjustments for ANYONE MILKING OFF THE GOVERNMENT TROUGH. This includes Social Security recipients, Military Retirement recipients, Welfare recipients, Medicare, Medicaid, and anyone else with their hand out. You can keep getting what you're getting, but for the next few years, that's all you get. Don't like it? Then go to work and pay more into the system. Go to work on the farms. Put the illegal aliens out of business. Work for less, you'll still be earning more than you will on the government dole.
{"commentId":4122734,"threadId":"422832","contentId":"2126289","authorDomain":"lorschweitzer"}
- 1 vote
#26 - Wed Nov 19, 2008 10:17 AM EST{"commentId":4123206,"authorDomain":"sas1866"}
On your points:
2) No we don't. The auto industry got themselves into this mess, let them get out of it. I can't go to the government and ask for a hand out if I'm near bankruptcy so why should they. The auto industry has had it's way for decades and I'm sick of it. Time to move on and out from under the auto industry.
3) Nice thought but not realistic. We all hate that Senior members of companies get paid millions, but nothing has been done about it.
4) We have been, right? And Paulson won't tell us where it's going.
5) And were will that get us? People on these systems have earned it through years of working and paying into the system. If they don't get raises then who will support these people? They need to keep up with cost of living too. As well how can our economy offer all these people jobs? RIght now there are more people that need work than who can get them. Adding retirees into the pool is asking for a disaster.
{"commentId":4123206,"threadId":"422832","contentId":"2126289","authorDomain":"sas1866"}
- 1 vote
{"commentId":4130793,"authorDomain":"drowninggrover"}
Molly, please just stop. Your ideas are ridiculous... Please, just stop posting now.
{"commentId":4130793,"threadId":"422832","contentId":"2126289","authorDomain":"drowninggrover"}
{"commentId":4122825,"authorDomain":"Boxie"}
Nest Egg? Don't have one....I will be working forever.. while Washington and Wall Street live it up and have a good time on my tax dollars!!
{"commentId":4122825,"threadId":"422832","contentId":"2126289","authorDomain":"Boxie"}
- 5 votes
#27 - Wed Nov 19, 2008 10:22 AM EST{"commentId":4122837,"authorDomain":"hd65"}
Why defer retirement? If you want to retire then do it. All you need to learn is how to live within your means. And if you need healthcare go to a public hospital and let the taxpayers pick up the tab. And then you can use food banks for your daily needs. There are plenty of ways to get by. Let all these people who bought into buying all this foreign junk support us now that we are done working. Let them suffer the consequences for what they have done. That is what I am doing. And so far life is GREAT not having to work. Someone has to teach them a lesson for their stupid follies. Let the Big 3 go under too and then they can support all those people as well. I am loving it. Americans are just not very smart I tell you. They have ruined their own country and now they are crying. Too bad. GET OVER IT!!!
{"commentId":4122837,"threadId":"422832","contentId":"2126289","authorDomain":"hd65"}
#28 - Wed Nov 19, 2008 10:23 AM EST{"commentId":4122978,"authorDomain":"sneila"}
My Fellow Americans! There is no free Lunch!!....uh,uh hum.. uh..unless your in Washington DC or Wall Street. But as I was saying...
{"commentId":4122978,"threadId":"422832","contentId":"2126289","authorDomain":"sneila"}
- 2 votes
#29 - Wed Nov 19, 2008 10:32 AM EST{"commentId":4122989,"authorDomain":"parthur169"}
Fortunately Social Security was not privatized: no nest egg and no Social Security.
{"commentId":4122989,"threadId":"422832","contentId":"2126289","authorDomain":"parthur169"}
#30 - Wed Nov 19, 2008 10:32 AM EST{"commentId":4123162,"authorDomain":"sncknbrg"}
Good point. Don't hear Bush ranting about that anymore, do we?
{"commentId":4123162,"threadId":"422832","contentId":"2126289","authorDomain":"sncknbrg"}
{"commentId":4123037,"authorDomain":"rmbhoops"}
Folks we are being lied to and taxed to death. It's all about our money. And guess what, we just can't get up and move, but Corporation can and they are, right out of this Country. Why? Because of our Greedy little Politicians. Just look at Granholm in Michigan. Losing Businesses left and right and she wants tax increases. Research her great service tax idea and you'll see how greedy they are. The service tax idea lasted one day! And she abolished it. Businesses had no idea how to collect it, what to collect it for, or where to send it. For that one day, those Businesses who did collect the service tax were told to keep it or give it back to their customers. Now there is a Politician with a plan. And to think Obama made her part of his economic advisery team. You other 49 States are in for a big surprise. Get ready!
{"commentId":4123037,"threadId":"422832","contentId":"2126289","authorDomain":"rmbhoops"}
- 1 vote
#31 - Wed Nov 19, 2008 10:35 AM EST{"commentId":4123774,"authorDomain":"jkintu2006"}
Actually you can move, no one is holding you down, get your college transcripts, resumes, with skills you can move anywhere across the globe, we immigrants have been doing it all the time, with skills, stamina and some luck, we move around, we follow the money and a dream:)
African from Tennessee, working on advancement of science.
{"commentId":4123774,"threadId":"422832","contentId":"2126289","authorDomain":"jkintu2006"}
{"commentId":4123116,"authorDomain":"sneila"}
Be a free thinker:
1. No Bailouts
2. No Dems
3. No Repubs
4. Yes to lower taxes
5. Yes to American ideals and Liberty
{"commentId":4123116,"threadId":"422832","contentId":"2126289","authorDomain":"sneila"}
- 3 votes
#32 - Wed Nov 19, 2008 10:40 AM EST{"commentId":4130839,"authorDomain":"drowninggrover"}
To be fair, we need to keep paying taxes at this point cause we're $11 trillion in debt. If our balance books were even, i'd agree with all 5 of your points. We HAVE NO CHOICE but to pay higher taxes at this point because someone has to pay off all the debt we've accrued in the last 30 years...
It's unfortunate, but it's true...
{"commentId":4130839,"threadId":"422832","contentId":"2126289","authorDomain":"drowninggrover"}
- 1 vote
{"commentId":4123185,"authorDomain":"jwright144"}
I am a baby boomer (age 59) and I have been working since age 19. I am single self supporting and most of my life I barely got by on my clericalpay. I own no home but I do own my used car. I finally got a 4 year degree at age 52 so my income has improved the last few years, but my projected social security at retirement (age 66) is still very low. I plan to work until at least age 68 full time but I may have to go to age 70 before I can retire. I still plan to work part time after retirment to supplement my income. I got out of the 401K contributions back in Aug. 2001 as I saw it was a crap shoot (gambling). I have no intention of ever returning to Wall Street. I am not complaining about having to work longer or having to work part time after retirment as I think I will enjoy that, but I do worry if social security is taken away or if they lower the monthly amount. I just cannot live without the amount i have been projected. Sorry folks I did my best to improve my lot with what was given me, but so much is out of my hands and in the hands of others who care nothing for people like me. For those who also worked hard but lost so much in their 401k in recent months, my heart goes out to you. Unfortunately, you are now down to my beleagered level of existence through no fault of your own.
{"commentId":4123185,"threadId":"422832","contentId":"2126289","authorDomain":"jwright144"}
- 3 votes
#33 - Wed Nov 19, 2008 10:44 AM EST{"commentId":4123194,"authorDomain":"pmelse"}
It's people like this that should get a bailout! Those that have worked hard, saved for their future, just to have it stripped away by Wall street!
{"commentId":4123194,"threadId":"422832","contentId":"2126289","authorDomain":"pmelse"}
- 3 votes
#34 - Wed Nov 19, 2008 10:44 AM EST{"commentId":4123280,"authorDomain":"denniswinkley"}
If Japan becomes the 51st state, we can come to own Honda, Toyota and Nissan and not need GM, Ford and Chrysler for our national defense needs. The Midwest has not been competitive in decades at least and needs to invent successful competitive industry if it wants to enjoy the fruits of capitalism.
{"commentId":4123280,"threadId":"422832","contentId":"2126289","authorDomain":"denniswinkley"}
#35 - Wed Nov 19, 2008 10:50 AM EST{"commentId":4123394,"authorDomain":"rclawrence06"}
So sad most Americans cannot make the connection to the 11 Trillion in debt and how we are all being taxed to death by the Bandits in Washington...food prices etc
Illustration; pay some of the sports gods and goddesses hundreds of millions to entertain us You go to see a football game and it costs 200 for seats...NOTHING is FREE...can you make the connection or how about $7 for popcorn...same for going to the movie....paying gods and goddesses hundreds of milions to make movies
This is what the Bandits have been doing to us for the last 50 years....stealing our inheritance and our childrens and grandchildren....taking ...by out of control spending and greed and corruuption
{"commentId":4123394,"threadId":"422832","contentId":"2126289","authorDomain":"rclawrence06"}
#36 - Wed Nov 19, 2008 10:58 AM EST{"commentId":4123468,"authorDomain":"artythesmarty"}
this is why a government or education job is such a great deal. Instead of worrying about retirement you make your neighbor work till they drop to pay for your leisure. That is what "unfunded pension" means in government- taxpayer pays the bill. Sad and I think it will cause a civil war in this country but nobody is even discussing it
{"commentId":4123468,"threadId":"422832","contentId":"2126289","authorDomain":"artythesmarty"}
#37 - Wed Nov 19, 2008 11:03 AM EST{"commentId":4123583,"authorDomain":"usnr600"}
We have always put our money in secured savings of some type. We are never going to be rich, but when all you want to be rich stock market players go back to work I am going fishing.
{"commentId":4123583,"threadId":"422832","contentId":"2126289","authorDomain":"usnr600"}
- 1 vote
#38 - Wed Nov 19, 2008 11:11 AM EST{"commentId":4123604,"authorDomain":"matancera"}
I'm 60, was hoping to retire at 62; but don't see that happening. Between social security and "pension" I'm supposed to get about $1400/month. Retiree health insurance is $400/month. $1000 doesn't even pay for rent on a 1 bedroom apartment, much less other living expenses. Would have been working for 43 years, paying bills on time, good credit and still one of the few lucky ones to have a job with health insurance. What's wrong with this picture??? Looks like I'll be working till I drop dead as long as I can hold a job.
{"commentId":4123604,"threadId":"422832","contentId":"2126289","authorDomain":"matancera"}
- 1 vote
#39 - Wed Nov 19, 2008 11:12 AM EST{"commentId":4139099,"authorDomain":"mnchrysler"}
Don't give up your dream until you've explored all of your options. If you can't get a 1 bedroom apartment for less than $1,000, then may I suggest you consider moving? In most non-major metropolitan areas I've lived in you can rent a modest apartment half that amount. My mortgage payment on a nice 3 bdrm house in the country is less than $1,000. Have you considered a roommate... remember the Golden Girls? Or investing in a duplex and renting out the more profitable unit? Or buying a mobile home in a retirement community? Or signed up for a waiting list for senior housing charging on a sliding scale by income? There are many ways for seniors to live on the cheap.
{"commentId":4139099,"threadId":"422832","contentId":"2126289","authorDomain":"mnchrysler"}
{"commentId":4123684,"authorDomain":"surfacemp"}
I just retired in August at age 64. The last few years I socked all that I could into my 401k. As I was sigining my socical security papers and preparing to leave a company I have worked for many years, Wall Street was robbing me , mostly the money that my employer had matched (up to now). I'm really mad, but I will survive. I still have my good health and a few high blood pressure pills left.
{"commentId":4123684,"threadId":"422832","contentId":"2126289","authorDomain":"surfacemp"}
- 1 vote
#40 - Wed Nov 19, 2008 11:16 AM EST{"commentId":4123737,"authorDomain":"TslkM"}
It appears, Capitalism and Democracy does not work! Capitalism is a pyramid scheme that must come tumbling down. Democracy reflects how intelligent the people are.
Big Business controls who runs for political office. Democrat or Republican, it does not matter. Both Parties voted for the bailout of the wealthy. Big Business decides who runs for political office.
The threat of economic blackmail by Big Business is being used now by the auto industry for a economic bailout. No one in the auto industry is blaming a lack of a good business plan, with a eye towards the future, the auto industry has not presented a way out of their economic crisis.
If a small business goes under, no problem. Big Business goes under, bail out. Something is wrong wth this picture.
Government can not cure all.
America was founded on the individuals right to choose. There should be consequences for poor choices, not rewards. Somewhere along the way, Big Business (the Rich) took control. Not good!
{"commentId":4123737,"threadId":"422832","contentId":"2126289","authorDomain":"TslkM"}
- 2 votes
#41 - Wed Nov 19, 2008 11:20 AM EST{"commentId":4123806,"authorDomain":"sterzbach"}
I enjoyed the article but it didn't help me find a solution to my problem. I am 65 and have been fortunate to work in the housing industry for the last 30 years. I worked hard and saved in my 401K while I put two kids through college with no loans. I was planning on working another two years. Housing collapsed and I got laid off. Now my 401K is down over a $100,000. and no one wants to hire a 65 year old woman with 30 years of housing experience. Fear has gripped my heart as it has the rest of the nation. Please, someone bail me out!
{"commentId":4123806,"threadId":"422832","contentId":"2126289","authorDomain":"sterzbach"}
#42 - Wed Nov 19, 2008 11:24 AM EST{"commentId":4123813,"authorDomain":"tooter"}
im 58 im retireing now and i plan to live off the system so all of you fools keep working to support me
{"commentId":4123813,"threadId":"422832","contentId":"2126289","authorDomain":"tooter"}
- 3 votes
#43 - Wed Nov 19, 2008 11:25 AM EST{"commentId":4124032,"authorDomain":"ejsthethird"}
Americas pharmaceutical companies will be there to help! But not this X-er!
{"commentId":4124032,"threadId":"422832","contentId":"2126289","authorDomain":"ejsthethird"}
{"commentId":4123863,"authorDomain":"gmbenz1"}
This is what happens when you drink the "free market", "cut 'your' taxes, "global economy" kool-aid. There has to be some regulation of industry, and protection of jobs/domestic markets, else chaos (see the current Wall St. crisis) is the result.
Who pays the price? You don't see Gates, Buffet, Forbes, etc., worrying about their nest eggs, do you?
{"commentId":4123863,"threadId":"422832","contentId":"2126289","authorDomain":"gmbenz1"}
- 2 votes
#44 - Wed Nov 19, 2008 11:29 AM EST{"commentId":4130863,"authorDomain":"drowninggrover"}
Nope. The "robber barons" didn't worry in the 20's and 30's either. The rockefellers, the carnegies, etc. they were rich, and they remained rich during the whole period. The same thing is happening today (e.g. those that cause the mess make out with huge profits from it and get out before the collapse...)
{"commentId":4130863,"threadId":"422832","contentId":"2126289","authorDomain":"drowninggrover"}
{"commentId":4124024,"authorDomain":"v1111"}
The BABY BOOMERS.......
WE NEED A BAIL OUT.......Give back our losses in our retirement accounts....
People first, then businesses....
{"commentId":4124024,"threadId":"422832","contentId":"2126289","authorDomain":"v1111"}
#45 - Wed Nov 19, 2008 11:39 AM EST{"commentId":4124092,"authorDomain":"ejsthethird"}
There's nothing like a good old fasioned shakeout. I love cheap stock!
{"commentId":4124092,"threadId":"422832","contentId":"2126289","authorDomain":"ejsthethird"}
#46 - Wed Nov 19, 2008 11:43 AM EST{"commentId":4124200,"authorDomain":"dennis-rowe"}
I am in the same position as Mr. Larsen, I have worked and saved for over 40 yrs. only to see my retirement 'Golden Years' slipping from my grasp. I am so damn mad that I want to see the people who collectively perpetrated this disaster be stripped of all of their wealth and possessions and sent to jail for life. I guess the hard working people of this country will just have to drop dead and call that retirement!
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that grow up around (the banks) will deprive the people of all property until their children wake up homeless on the continent gthat their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
{"commentId":4124200,"threadId":"422832","contentId":"2126289","authorDomain":"dennis-rowe"}
- 1 vote
#47 - Wed Nov 19, 2008 11:49 AM EST{"commentId":4124254,"authorDomain":"johnfnrba"}
I feel for everybody losing their nest egg. However I did my own research and discovered that fixed/index annuities work great when you reach the retirement age. You get the up and none of the down. I got out in 07/07 and still have every dime in tact.
{"commentId":4124254,"threadId":"422832","contentId":"2126289","authorDomain":"johnfnrba"}
- 1 vote
#48 - Wed Nov 19, 2008 11:52 AM EST{"commentId":4124377,"authorDomain":"joanofarc"}
Those who invested in high-risk, high return have to take responsibility for their own actions. It is a well known rule that you don't take chances with your retirement money when you are close to retirement. You only play with the money you can afford to lose. I feel sorry for those who lost money, but I can't feel pity if they invested irresponsibly.
{"commentId":4124377,"threadId":"422832","contentId":"2126289","authorDomain":"joanofarc"}
- 1 vote
#49 - Wed Nov 19, 2008 12:00 PM EST{"commentId":4125012,"authorDomain":"slatterychris"}
If high risk stocks were the only stocks hit, then I would agree with you. But, given the mees the hedge funds found themselves in due to their derivative investments, those funds have even had to liquidate "blue chip" positions in order to repay their investors. As a result, even the formerly safe, conservative stocks have seen losses of 20% or more.
{"commentId":4125012,"threadId":"422832","contentId":"2126289","authorDomain":"slatterychris"}
{"commentId":4124397,"authorDomain":"slatterychris"}
It is about time that retirees and those near retirement receive their bail-out from this mess that they did not cause. A simple solution is to have Congress mandate that at least 50% of the social security surplus (even if it is just a bookkeeping mirage) be invested in the stock market. This would cause an immedicate increase in the market and help eliminate the negative wealth effect currently impacting our economy. In effect, this would be another means to achieve the near-term economic stimulus which is needed and help those who have done things right by saving for retirement recoup some of their recent losses.
{"commentId":4124397,"threadId":"422832","contentId":"2126289","authorDomain":"slatterychris"}
- 1 vote
#50 - Wed Nov 19, 2008 12:01 PM EST{"canLink":false,"threadId":"422832","isPrivate":false}
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