Remember the dream where you show up to high-school in your pajamas? Or the one where you find out you didn't actually graduate college and you have to go back and take one more final? Or the one where you retire and then the stock market plummets 13% right after you retire?
Oh yeah, that one wasn't a dream. That was real.
Or, how about this dream: you retire 8 years ago and then have to go back to work at a career you did 30 years ago?
I'm black and blue from all the pinching and it's still happening.
Posted by: boomie | September 17, 2008 at 07:32 PM
Ouch! That dream would put me back behind the counter at H.Salt Fish and Chips serving deep-fried fillets!
Posted by: Retired Syd | September 17, 2008 at 07:53 PM
Maybe this will help your state of mind. If you had bought the entire market on Friday, Sept. 16, 1987, the last business day before Black Monday, you would have made money in one year. It's not as bad as it appears, though I understand you have to tap that money earlier than later.
Posted by: Chad @ Sentient Money | September 18, 2008 at 05:02 AM
Scary stuff. My scariest school dream is always about sitting for an exam for which I totally forgot to study :-S
Posted by: Ray | September 18, 2008 at 08:07 AM
The mattress is starting to look like a mighty good place to stash my $$. But, wait.. it [url=http://wastrelshow.blogspot.com/2008/09/how-to-prepare-for-your-worthless.html]isn't even worth the paper it's printed on![/url]
I think I just need to take a deep breath and calm down. Tomorrow is another day, as Scarlett said.
Posted by: Analise | September 18, 2008 at 08:49 AM
@Ray--Oh yeah, I used to have that one too!
@Analise--I read that one last night--I'm not that worried . . . yet.
@Chad--Now THAT'S what I needed to hear! I recently wrote a post about how much money is enough to retire. I referred to a study that showed that at my current withdrawal rate of 3% there is NO 50 year period where I would outlive my money. So I believe it is true--deep down inside. But stats like that are much salient for my state of mind. I have 2 1/2 more years of cash available without touching my beat-up equities. So remembering what happened after Black Monday is a HUGE lift to my psyche. Thanks for that tidbit!
Posted by: Retired Syd | September 18, 2008 at 09:01 AM
Hey, how about your savings (and net worth) tank 10%---while your family is being slammed by a hurricane and you can't get through on any phones?
In Texas, so many lost their jobs/businesses and their homes in one night. Bankers can get more jobs. The stock market will recover. It's the human suffering I can't get out of my head.
Posted by: dogatemyfinances | September 18, 2008 at 09:52 AM
I need a wakeup too. Or at least an alka seltzer to settle my upset stomach. ;-O
Posted by: RetiredAt47 | September 18, 2008 at 10:29 AM
Perhaps the biggest thing is to NOT SELL ANYTHING IN THE STOCK MARKET! Sell bonds if you have to but avoid touching the stocks until they can recover. No wonder I told my dad he needed a good 3 year cash float when he finally retires!
Tim
Posted by: Canadian Dream | September 18, 2008 at 11:34 AM
@Tim: I agree! In fact, I have some cash in my retirement plan I was sitting on (that I can't touch anyway for 15 more years) which I am just about to invest. I think the market will go down some more, but since I don't have a crystal ball, I can at least say "well better to invest now than one year ago when I was considering it!"
There have been historical periods where 3 years cash wouldn't have been enough, but I'm hoping we're not in one of those. And at the very least, I hope we're not in a 15 year period where investing cash in the market now wouldn't have been a good idea!
Posted by: Retired Syd | September 18, 2008 at 11:51 AM
@dogatemyfinances--That's some good perspective here. I have a friend who's daughter is sick. Life or death stuff. She is worried every day about her. I don't think she really care's what is happening in the stock market right now--her nightmares are much more scary.
Posted by: Retired Syd | September 18, 2008 at 12:56 PM
I actually did an interview on CBC television on Monday night (there's a link to that interview from my blog) talking about the impact of the stock market crisis on retirees. I'm going to hide in the naive position that my gov't public pension can outride this and that by being a little careful with money I can leave my investments languishing where they are until the sun comes out on the market again. Okay - I know that's simplistic, but it seems like a better choice than tearing my hair out.
Posted by: Sylvia B | September 20, 2008 at 09:58 AM
Like you, having 3+ year's expenses in cash and bonds have also help us weather the stock market volatility during our 1st year of retirement.
Unfortunately, I invested some cash in my retirement account right near the market peak in 2007. Back then I thought, the market is always up in 10 years. Of course, 2008 marked the end of the first 10 year period that wasn't true since the depression :-(
Posted by: Super Saver | September 21, 2008 at 09:09 PM