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.

[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?

[rfn1]

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

[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!

[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

[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.

[wl7bzh]

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


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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.

[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.

[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 .. ''''




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Posted by brdlikssssss

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

[musethalia]

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


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Posted by dmw1167

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

[musethalia]

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


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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 -

[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.

[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

[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")

[lemonskink]

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

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

[newz4i]

Country First = vote more Republicans out this November.

[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.

[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.

[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.

[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.

[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