If it is about retirement fund, no amount of money is too big.
But due to the global economic crisis eating up the life of 401(k)s, IRA and pensions, many people wonder whether they could still make it to retire early or at all.
People can set their goal as they wish but the question now is whether they could ever get to it.
Recouping 8-9% every year from retirement accounts was very common for investors in the past years but these are now off the table.
Our financial crisis has challenged the assumption of people nationwide about their retirement. According to Ben Stein, author of “How to Ruin the United States, people now wonder whether the whole idea about retirement was still relevant at all and whether a whole generation of Americans can actually retire.
What people can control now during the crisis is find a job that they truely love so they would not mind retiring later, save even more for retirement and maintain a more modest life. While they may alter their retirement plans or investment strategy, the most important thing to do now is to keep saving.
Any plan that you have at work should be maxed out as you might need it sooner than you have anticipated.
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It’s important to remember that the 8% gain a year in a stock portfolio like a 401k is over the long term. You can’t take any one 12 month period or even a 36 month period and say it’s the way it will always be.
If you look at the last 100 years, over time all the highs and lows average out to an 7-8% gain. You just have to think long term.
Posted on November 29th, 2008 at 11:16 pm
That’s so true. Thanks for the comment!
Posted on November 29th, 2008 at 11:50 pm
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