Wednesday, July 14, 2010

Maybe My Grandmother Was Right!

My husband and I are Baby Boomers. Yes, at that age where retirement begins to loom on the horizon. We both have long work histories behind us. We did what the experts told us... invest as much as possible in your 401K.

Well, look what has been happening to those 401Ks. Losing money! Disappearing before our eyes!

I'm sorry I listened to the experts. Maybe I should have done what my grandmother believed... just put the money under a mattress! At least it would still be there.

So, now I am trying to decide what to do. I have become nervously aware of what is happening in the stock market because it affects my 401K. Should I hold on, waiting to see if I get my lost money back? Should I cash it out now, before I lose more? Maybe I need to rebalance it to reflect less risk. So, I have been looking at stocks vs. bonds. Actively managed accounts vs. index funds, etc., etc. It's all very intimidating. Retirement used to be something in the distance for us. Now it's looming. It's become something real. Too real. Something to worry about. How will we live? Where will we live?

Many baby boomers are approaching retirement age. Just our luck that this coincides with a big economic downturn. I saw a feature on the news yesterday, about how many baby boomers are going to run out of money during retirement. Are we going to have a bunch of homeless old baby boomers? Not pretty.

After my grandmother died, my family found money stashed away in her apartment. Not actually under the mattress, but in books, in old coffee cans, etc. I'm beginning to think maybe she had the right idea. At least the money stayed put!

No comments: