Tuesday, October 28, 2008

Retirement

As most of you know- my hubby is semi retired. He is a bit older than me and with the loss of his sibling he is a bit more ready to retire. Ok, he is retired with a hobby of keeping the grounds with the prospect of building something out of wood. That is still a mystery.
SOOOO, I watch our pennies.
I kept our old portfolio active, just to see what would have happened if we had stayed the course.
Today it is official.
If we has stayed in the market, we would have lost half of our liquid assets. I cannot say life savings since most of our savings are in the place we call home.
It is a sobering thing to look at that portfolio.
How are people doing it who did not know to get out of the market when it was higher? I have so many friends who have money in 401K or IRAs who did not think that they could move their money to cash within those accounts.
I am worried about senior citizens who depend on their savings for an OK life in the future.
I am anxious for the elections and convinced that no matter who wins----it might settle down just a bit.
What a year!

2 comments:

RAnn said...

Actually people who have followed the usually given advice are just fine. That advice is not to have any money you will need in the next five years in the stock market. We have lost 1/3 of our net worth compared to a few months ago--but we aren't (unless something catestrophic happens) going to need to cash in those stocks any time soon. Right now, every paycheck does the equivalant of buying stocks on sale, so if things go the way they historically have done, we'll be poised to gain when the market goes back up.

Unfortunately, the problem with staying in cash is that by the time the taxes are paid, your investment does not keep up with inflation.

Janette said...

Exactly!
We lost about 1/2 of our net in the 80's and recovered nicely. Still, it stings.
Most 403b do not let you invest in cash accounts IME.