In the news and the blogs there have been a series of reports, valid or not, that the world is looking at a global economic downturn of significant proportions. While this maybe true or not, one thing to note is more Americans control their own retirement accounts and are subject to choice and market conditions. Are we setting up an economy of fear? Riding the wave of emotional sentiment when your retirement future is bouncing on a VIX 100 foot wave fear and uncertainty sea is no way to build a secure social safety net.
IRAs now account for 25.5% of all retirement funds.
During the Dot Con Crash untold losses in stock based retirement plans occurred. What is more amazing is I spent a good two hours looking for the total loss estimates on 401ks during the 2000-2003 time frame and amazingly enough could not find the data! Story after story of individuals wiped out, unable to retire, looking for work, but aggregate estimates....none to be had!
In other words, today's retirement amounts to each person having to be a economic and market expert. It's the luck of the draw which enables one to retire. Somehow I don't think your average American has the financial savvy or the luck to guarantee retirement under these conditions.
So, what's the current answer? Plain don't panic and do not act on emotion. Do your homework and also write your Congress representative. Being forced to place our bets in a retirement game of Russian Roulette just to obtain retirement financial security is an outrage Americans really shouldn't stand for anymore. We're truly in a sucker's game.