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September 17, 2008


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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.

Retired Syd

Ouch! That dream would put me back behind the counter at H.Salt Fish and Chips serving deep-fried fillets!

Chad @ Sentient Money

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.


Scary stuff. My scariest school dream is always about sitting for an exam for which I totally forgot to study :-S


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.

Retired Syd

@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!


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.


I need a wakeup too. Or at least an alka seltzer to settle my upset stomach. ;-O

Canadian Dream

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!


Retired Syd

@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!

Retired Syd

@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.

Sylvia B

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.

Super Saver

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 :-(

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