The financial crisis has wreaked havoc on Wall Street and exchange traded funds (ETFs), and now there’s something else getting hit hard: retirement portfolios.
American’s retirement plans have lost around $2 trillion so far during the past 15 months, and now the recent upheaval in the financial world has sent workers’ savings down the tubes, causing people to put off big ticket purchases, and delaying retirement.
Julie Hirschfeld Davis for Associated Press reports that Congress investigated the causes and effects of the financial meltdown. The House Education and Labor Committee was hearing from retirement savings and budget analysts on how the housing, credit and other financial troubles have battered pensions and other retirement funds, which are among the most common forms of savings in the United States.
Many people are worried they will have to work longer than anticipated because their retirement savings has declined. American people are not represented by Wall Street executives who have a “golden parachute” to fall back on, and consider who hardship as having to sell their private leer jet. Retirement security may be one of the largest casualties of this crisis.
If you’re about to retire and are still invested in your portfolio, you might consider selling some positions to stop the losses. Once the markets turn back around, look into putting your money back in to try and regain some of the losses.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.