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View Diary: Drained retirement funds signal acute looming crisis (286 comments)

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  •  It's tragic and it's clear something (0+ / 0-)

    needs to change.  The Great Recession showed why IRA's/401k's are not adequate vehicles for retirement.  Even for people who struggle to put every extra penny they have into an IRA or 401k, they are at the mercy of the whims of stock market cycles.

    We can't expect every citizen of the US to become an expert investor, someone who knows how to balance reward/risk over the long term and how to gauge the market for cyclical risk.

    Both market cycles and random crises can strike at any time and if it happens to be close to someone's planned retirement years, it can be catastrophic.

    For some boomer hitting 62-63 in Oct 2007, they might have looked at the monthly statement of their underfunded yet helpful IRA of $200,000.  But in Mar 2009, that amount might have been down to $90,000.  Then if illness, job loss or any of a dozen other crises hit, they start "eating the seed corn".  Maybe they had to spend $50k of that fund.  Maybe they needed more.

    For those who managed to get through that period without a crisis, their retirement account might be somewhere near $250,000 today if they didn't tap into it.  But of course, many didn't make it through so well.

    I'm not liberal. I'm actually just anti-evil, OK? - Elon James White

    by Satya1 on Thu May 08, 2014 at 09:30:44 AM PDT

    [ Parent ]

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