Saturday, July 19, 2008

Coming Soon - The 401(k) Meltdown

Well, the financial meltdown is starting to hit home. My wife and son both received their 401(k) statements for the second quarter and man were they complaining. My son's 401(k) lost about 7.5 per cent, while the wife's lost about 8 per cent. Needless to say, they were definitely not "happy campers". This may well be another sign of a faltering economy. Only this problem is going to hit home a lot quicker. If you're getting close to retirement, the last thing you want to see is your money disappearing while the speculators are battling each other in the stock market.

To some an 8 per cent loss may not seem like much, but when you're knocking on the door to retirement it really hurts. I'm starting to feel like my fingers are going to be slipping off the door handle any minute now. I sure hope everyone else's 401 (k)'s isn't taking this kind of hit. I know I can't afford too many more losses of this kind. With people losing their homes, their jobs(and their healthcare along wth it in many cases), struggling to make ends meet with higher food and fuel prices, the last thing they need is for what little savings they've managed to put back to start disappearing.

Unfortunately, the real estate people are now talking like it's going to be a couple of years before the housing market starts to settle down. That's all we need right now. Two more years of this kind of financial crap. Plus the slight drop in oil prices doesn't look like it's going to be little more than a short term thing.

Better plan on putting a little cash aside with your other preps, if and when possible.

Stay above the water line!



Bustednuckles said...

There is another wave of ARM's scheduled to hit in 09.
I would be amazed if the real estate mess wasn't going to last another five years.

scoutinlife said...

The market slow many homeowners are trying to sell! I make my living selling manufactored and modular homes! Used singlewide business is great lot of clients have their larger homes for sale looking to purchase a smaller sectional home.But my I'm not half as busy as I was a couple years ago! Just have to weather the storm so to speak....

riverwalker said...

To: bustednuckles

You're probably right! The media spin always tries to put an "Everything's OK!" spin on just about everything these days.


riverwalker said...

To: scoutinlife

I think the current economic situation is going to force a lot of people to "downsize" their expectations in a very serious way.
Unfortunately, a lot of them don't have any liquidity or equity in their homes to do much of anything.


Anonymous said...

when you are close to retirement you are supposed to which everything to mutual funds as they are much safer. they don't earn as much, but are safe.

riverwalker said...

To: anonymous

The average person usually doesn't devote the necessary time to keep track of their investments, albeit to their detriment. Thanks for the input.


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