Economy Cracks Many Nest Eggs

CBS Evening News: Retirees On Edge About Whether Savings Will Last

(CBS)  Walter Lawrence was living retirement on Easy Street - until Wall St. scrambled his nest egg.

"I had a lot of money," Lawrence said. "Today I don't have a lot of money."

Half his savings are gone, without him spending a dime, CBS News correspondent Mark Strassmann reports.

It's a financial distress call for millions of retirees: America's economy, burning through their assets.

Lawrence can spot an emergency. He's a retired Atlanta firefighter and after twelve years, he may have to go back to work, doing something.

"I doubt you would find too many people who would hire a 67-year-old," Lawrence said. "Then what would you do?"

Paul Nelson would never have retired at all.

He saved, planned, invested for a long walk down the fairway. But his investments are down 25 percent.

"They used to say you need X amount of dollars to retire," Nelson said. "I don't think anybody could say right now what you would really need to retire. There's no way."

Even before this week's upheaval, at 18 percent, few American workers were very confident they'd have enough money for retirement.

And most retirees have more financial worries now than the day they retired.

More Americans older than 55 are still working now than at any time since 1970.

And with the economy now in turmoil, labor experts predict more anxious older workers will be forced to put off retirement, Strassmann reports.

"I would have waited another two or three years," Nelson said. "But in three years I might have had to say five or seven, because of the uncertainty. We don't know what it's gonna take."

Which has the retired firefighter smelling smoke in his future.

"You could see outliving your assets?" Strassmann asked.

"Yes," Lawrence said.

Strassmann asked: "Could you have imagined that, just a couple years ago?"

"No, no, no," Lawrence said.

They're like many retirees, with no idea where to find a new roadmap back to Easy Street.

[incog-nito]

Well my first egg is doing fine, but I have a feeling my next egg will crack too.

[cheapshades-2009]

I would love to have a "work from home" position at CBS to proofread the articles.

[smurfcrusher]

The first egg was a victim of the economy. NEXT !

[simplemind2]

Originally, I had my 401k fund broke-down to 50/25/25 - i.e. 50% fixed, 25% Small stock and rest 25% Big stock.
After many years of seeing the balance standing still even with x% of every pay-check chip-in - no luck.
Finally one evening, I muttered something while gave my youngest daughter a ride to her friend''s house - sitting in the back-seat and she asked me what I was mumbling all about and then the HS Valedictorian suggested to me "Dad, why don''t you consolidate all your 401k into the fixed category?"
I followed her suggestion later that night - so far everything is cool.
She must got her smart genes from my better-half - lucky me - :-).

[nothappyatall]

"half his savings are gone"

Awww, maybe when the news about Bear-Sterns hit he shoulda thought it won''t stop there, even I figured that much- and took all his money OUT of his investments

[tbuckl]

I want to vote to the person who will follow this GREAT American idea and concept and return my America to me and my fellow citizens forthwith..."We hold these truths to be sacred & undeniable; that all men are created equal & independent, that from that equal creation they derive rights inherent & inalienable, among which are the preservation of life, & liberty, & the pursuit of happiness; that to secure these ends, governments are instituted among men, deriving their just powers from the consent of the governed; that whenever any form of government shall become destructive of these ends, it is the right of the people to alter or to abolish it, & to institute new government, laying its foundation on such principles & organizing its powers in such form, as to them shall seem most likely to effect their safety & happiness." Thomas Jefferson

[cjs_cnet_xyz]

What is most humorous about the mispelling is the fact that it ended up in the title of a story at the top of the page of the business section. I guess grammar checking was outsourced.

401Ks have outlived their usefulness if you can''t design them specifically in your own interests, instead of having the bundle managed by some constrained object of investing.

[smurfcrusher]

zollner2 has been reported for SPAMming an eBay item

[hypnotoad72]

I would love to have a "work from home" position at CBS to proofread the articles.

Posted by cheapshades at 08:45 PM : Sep 26, 2008
------------

Or peoples'' comments... (not yours, there are plenty of people who post vile things rather than discuss a ***bleep*** thing.)

[theoatwa]

%u2026%u2026%u2026%u2026%u2026%u2026 MCCAIN %u2026%u2026%u2026%u2026. OBAMA
Income %u2026%u2026. Avg tax bill %u2026%u2026. Avg. tax bill
Over $2.9M %u2026. -$269,364 (-4.4%)%u2026 +$701,885 ( 11.5%)
$603K and up%u2026. -$45,361 (-3.4%)%u2026 $115,974 ( 8.7%)
$227K-$603K%u2026%u2026 -$7,871 (-3.1%)%u2026%u2026.. $12 ( 0.0%)
$161K-$227K%u2026%u2026 -$4,380 (-3.0%)%u2026.. -$2,789 (-1.9%)
$112K-$161K%u2026%u2026 -$2,614 (-2.5%)%u2026.. -$2,204 (-2.1%)
$66K-$112K %u2026%u2026 -$1,009 (-1.4%)%u2026.. -$1,290 (-1.8%)
$38K-$66K %u2026%u2026.. -$319 (-0.7%)%u2026.. -$1,042 (-2.4%)
$19K-$38K %u2026%u2026.. -$113 (-0.5%)%u2026%u2026. -$892 (-3.6%)
Under $19K %u2026%u2026%u2026 -$19 (-0.2%)%u2026%u2026. -$567 (-5.5%)
http://money.cnn.com/2008/06/11/news/economy/candidates_taxproposals_tpc/?postversion=2008061113

[theoatwa]

talk is cheap.
%u2026%u2026%u2026%u2026%u2026%u2026 MCCAIN %u2026%u2026%u2026%u2026. OBAMA
Income %u2026%u2026. Avg tax bill %u2026%u2026. Avg. tax bill
Over $2.9M %u2026. -$269,364 (-4.4%)%u2026 +$701,885 ( 11.5%)
$603K and up%u2026. -$45,361 (-3.4%)%u2026 $115,974 ( 8.7%)
$227K-$603K%u2026%u2026 -$7,871 (-3.1%)%u2026%u2026.. $12 ( 0.0%)
$161K-$227K%u2026%u2026 -$4,380 (-3.0%)%u2026.. -$2,789 (-1.9%)
$112K-$161K%u2026%u2026 -$2,614 (-2.5%)%u2026.. -$2,204 (-2.1%)
$66K-$112K %u2026%u2026 -$1,009 (-1.4%)%u2026.. -$1,290 (-1.8%)
$38K-$66K %u2026%u2026.. -$319 (-0.7%)%u2026.. -$1,042 (-2.4%)
$19K-$38K %u2026%u2026.. -$113 (-0.5%)%u2026%u2026. -$892 (-3.6%)
Under $19K %u2026%u2026%u2026 -$19 (-0.2%)%u2026%u2026. -$567 (-5.5%)
http://money.cnn.com/2008/06/11/news/economy/candidates_taxproposals_tpc/?postversion=2008061113

one of the most important things you can do right now as an american is to pass this fact on to every single person you know.

the truth can set the people free.

[williewomper]

Subject: A US Citizen Bailout


Whoever T. J. Birkenmeier is, I sincerely salute him.
I''''m against the $85,000,000,000.00 bailout of AIG.
To make the math simple, let''''s assume there are 200,000,000
bonafide U.S. Citizens 18+.
Our population is about 301,000,000 /- counting every man, woman
and child. So 200,000,000 might be a fair stab at adults 18 and up..
So divide 200 million adults 18 into $85 billon that equals
$425,000.00.
My plan is to give $425,000 to every person 18
as a
We Deserve It Dividend
. Of course, it would NOT be tax free.
So let''''s assume a tax rate of 30%.
Every individual 18 has to pay $127,500.00 in taxes.
That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18 has $297,500.00 in their pocket.
A husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage - housing crisis solved.
Repay college loans - what a great boost to new grads
Put away money for college - it''''ll be there
Save in a bank - create money to loan to entrepreneurs.
Buy a new car - create jobs
Invest in the market - capital drives growth
Pay for your parent''''s medical insurance - health care improves
If we''''re going to re-distribute wealth let''''s really do it And remember, The Birk plan only really costs $59.5 Billion because
$25.5
Billion is returned
***************
This guy should be President!

[tarheel_83]

Retirement 101 - The closer you are to retirement and needing your money, the less should be in equities. People need to stop chasing double-digit yields and put their money somewhere safe. The gentleman that lost "half his money" must have had over half in stocks, which is entirely inappropriate for someone his age.

[tarheel_83]

Retirement 101 - The closer you are to retirement and needing your money, the less should be in equities. People need to stop chasing double-digit yields and put their money somewhere safe. The gentleman that lost "half his money" must have had over half in stocks, which is entirely inappropriate for someone his age.

[Meg003]

Retirement 101 - The closer you are to retirement and needing your money, the less should be in equities. People need to stop chasing double-digit yields and put their money somewhere safe. The gentleman that lost "half his money" must have had over half in stocks, which is entirely inappropriate for someone his age.



Posted by tarheel_83

While your advice is standard financial speak, I''d like to mention a couple of points. Few retired people will save enough to live off 2 percent interest from a savings account at a bank. Many retirees count on dividend income as a source of retirement income.

Another point: all manner of investments are crumbling now. You could have lost cash in the bank, if you had more than 100,000 in one account. You could have value in real estate investments. With loans hard to come by to finance purchases for business, your business can go bankrupt very quickly.

Retirement 102: There is no 100% safe place to earn enough on which to retire for most people. Best advice for today''s economy: keep working till you drop, if you are able.

[runningralph]

Since the government is taking over the housing business, why can''t we take all the foreclosed properties and put them in Section 8? Move a bunch of big, fat semi-literate welfare mamas into ritzy subdivisions. Put drug rehab facilities and halfway houses in there. Put in public transportation. Parole officers, bailbondsmen, police stations don''t have to be in shabby downtown areas. They could all be located in in the suburbs along with their customers. With fences and razor wire any house could be a holding cell.

[Meg003]

These people deserve to have their money taken. You never, ever, leave money in common stock or in an unsecured place where it can be lost with ups and downs of the stock market. There are far too many other places that his money could''''ve/should''''ve been placed more secure for his and his wife''''s safety. Somebody, please, slap this guy and take what money he has left and put it in utilities or some other holding firm that has a lower return but a secure future. This man can not be trusted with his own money. Quite frankly he''''s one of the people that needs taken care of rather than invest his own.
This is nothing more than the Buffalo Theory being played out in real life. "If you limp, you''''re lunch."

Posted by maxify55

Keep telling yourself that fairy tale if it helps you sleep, but right now, nothing is 100% certain in this investment environment. Ever heard of Enron?

[jn122736]

Most of these Folks have been voting for republicans since Reagan initiated the (intentionally fraudulent) trickle-down policy of cut taxes, borrow and spend, 28 years ago.

The fact that retirees savings and investments are worth so mush less is proof positive that the Reagan/republican borrow and spend policies actually RAISED their taxes/expenses and they are paying for that today with their retirement savings.

Every working American is being hit by that fraudulent trickle-down theory. For example: a savings of $100,000 in 2001 is worth less than $50,000 today because of the drop in the value of the dollar, and the doubling to quadrupling of the costs for EVERYTHING necessary for survival, including food, gasoline, medical care, etc.

The past 8 years have been far worse than the Reagan years (and McCain has vowed to continue with that policy if he is elected).

If we (the voters) do not realize that republicans have not just raised our taxes/expenses but done so in a way that EVERY benefit goes straight to the top 5% of the wealthiest in this country, then perhaps we will when we finally realize just how enslaved we are becoming to those top 5%.

Throughout my entire life I have been proudly confident that American were willing to, and capable of, preserve the freedoms and rights of ALL Americans, but the last two elections, and today%u2019s polls, are destroying that confidence.

[whatithink1]

Am I crazy or when you retire shouldn''t you take your money out of the stock market? If you don''t have 5 years to get your money back, the stock market is the wrong place to be.

[whatithink1]

runningralph,

You are very obnoxious.

Here is a book for you...The MYTH OF THE WELFARE QUEEN: A PULTIZER PRIZE-WINNING JOURNALIST''S PORTRAIT OF WOMEN ON THE LINE by David Zucchino

[whatithink1]

Meg001,

I would agree about Enron, but the story said these people had retired already. I think somebody gave them bad advice or are they talking about their pensions? It''s really hard to tell. That''s why I prefer books. These reports are sometimes too superficial.

[Meg003]

whatithink1

While I have read a few books on investing, I have no confidence in my ability to select investments at all. If I retired soon, and had to select a portfolio for retirement, I cannot come up with any selections that would make me feel comfortable. Annuities? Savings in a bank? Mutual funds? I''ve got to admit, my best investment choices have resulted from dumb luck, and the thought of moving into "safe" investments has me confounded.

[cbsblogger]

If Wall Street and George Bush and the Republicans had only sold us on the idea of privatizing we''d all be in fat city......LOL.

Wall St knew full well that this was all coming down due to demographics of aging boomers pulling more money out than putting in, and an impending blow up in housing....but they wanted taxpayers to fund this game of musical chairs from social security taxes.

These greedy neocon Wall Streeters should have their wealth forcibly stripped from them and applied to the bailout.

[donbl1]

Well, only lost a Masseratti so far.......

McCain was right, Cox should have been fired.

This points to the problem with appointing politicians to "manage" anything. Cox was not ready for the challenge.

[newz4i]

Country First = vote more Republicans out this November.

[lemonskink]

It''s all written in stars, well, at least here:

http://www.youtube.com/watch?v=EcZSh1diQRQ

[cbsblogger]

If Wall Street and George Bush and the Republicans had only sold us on the idea of privatizing SOCIAL SECURITY we''d all be in fat city......LOL.

Wall St knew full well that this was all coming down due to demographics of aging boomers pulling more money out than putting in, and an impending blow up in housing....but they wanted taxpayers to fund this game of musical chairs from social security taxes.

These greedy neocon Wall Streeters should have their wealth forcibly stripped from them and applied to the bailout.

(Corrected the previous post which had omitted "Social Security")

[cbsblogger]

neonink (your post below)......I agree there is HUGE overrepresentation not only on Wall Street but also in the Federal Reserve, in the media and in government. To me that is representative of gross racism and ethnic bias at the highest levels.

http://www.federalreserve.gov/aboutthefed/bios/board/default.htm

[u-r-right]

The cost of basic necessities at the grocery store give me the greatest shock each week. There is nowhere left to cut corners.

[musethalia]

Keep one thing in mind land never shrinks and has always gone up in value.


--------------------------------------------------------------------------------

Posted by dmw1167

well done! land is definitely a better option for the long term - we also bought a 36 acre chunk of ground for a cabin a few years back for around 14K and now mountain acrage goes for between 5 to 7 K -

[musethalia]

Are you writing this from a padded cell or are you just plain stupid.


--------------------------------------------------------------------------------

Posted by dmw1167

LOLOLOL! I was thinking similar thought when I read that post as well!

[musethalia]

'''' .. i was poor, but had a little land and junk, my land and junk grew in value because of the nice rich people next door .. then someone busted down my door, and i ain''''t rich no more .. but i know how the nice rich folk got rich, i won''''t wonder about that no more .. ''''




--------------------------------------------------------------------------------

Posted by brdlikssssss

are you high or just messing w/people??? Holy snap!

[elz523]

This is sad, but put McCain in charge with another 4 years of Bush''s borrow and spend policies and you will have a dollar at half it''s current value. That will sap retirees earnings more than anything else. If we had the suprluses today that were foreseen when Bush took office, these people would not have a problem.

[wl7bzh]

I''''m taking my money out of the bank now before it''''s too late.


--------------------------------------------------------------------------------

Posted by niceface69 at 07:39 PM : Sep 27, 2008

You may want to consider using it to get out of debt and stocking up on necessities-there was a time when Confederate money and German marks were in abundance.

Take into account that instead of recession/depression we may wind up with hyperinflation. So again, consider stocking up on necessities while your money has value. Up or down, either way you would have what you needed.

Just a thot.

[llnichols-2009]

I''ve always liked Katie Couric but it is easy to see in this interview that she her option is so biased that she is a disgrace to Reporters everywhere. I have lost all respect of her as a news anchor.

[praiseallah1]

Don''t Let Bush bailout Wall Street with $700 Billion in Tax Payer money!

Email your States Senators, Congressperson, House Representatives and DEMAND that they vote NO on any Bailout because this money will just be used to pay off Wall Streets debt that they created themselves through their own greed by marketing bundled bad mortgage loans!

We have also sent sorning emails to George Bush, Nancy Pelosi, Harry Reid, Chris Dodd, Barney Frank, McCain, Obama saying we will vote them OUT of Office.

Watch this video which show which lawmakers are responsible for the sub-prime mortgage mess at http://wallstreetmarketnews.blogspot.com/2008/09/who-is-to-blame-for-wall-streets-700.html

[nicholasma]

Dear sir

NO! No bailout, I never got the chance to own a 500,000.00 house and *** my way to that kind of loan!

Please tell me... 700 b in bad loans this years means what ??? in 4 years their still bad loans !! let then eat there loans. Dot tell me to eat cake!

[rfn1]

Ken Lay + Enron VERSUS Shumer, Frank, Dodd Fannie& Freddie M.%u2014could you help us decide the biggest disaster?

[forthinvader]

An alternative bailout. Forgive all outstanding mortgage loans for every American citizen. I believe this bailout would solve most of the issues at hand and for far less than $777 billion dollars. Debts of African Nations have been forgiven thanks to President Bush and his Rock''''n Rollin buddy Bono. Bush has given away billions to Africa for AIDS. Its time for heal Americans. Any objections?