What happened to my retirement savings?

While it seems apparent that the "powers that be" have decided to inflate our way out of this current "crisis", what will you do if you see your savings evaporate 15-25% per year for the next decade? What I'm really asking is how will this potential scenario impact your plans?

WalMart greeter, here I come.

delzy said: While it seems apparent that the "powers that be" have decided to inflate our way out of this current "crisis", what will you do if you see your savings evaporate 15-25% per year for the next decade? What I'm really asking is how will this potential scenario impact your plans?

Not much. I'll still contribute to my IRAs, 401K, investments, etc. For me, I try to live for today and not worry about things I cannot control. Whatever happens, happens. I'm still saving for that $10K ladder!

Off topic - has anyone heard about the topic of the North American Union or the Amero? Is that for real or some sort of conspiracy concocted by the media?

Buy low and sell high. I'm glad I have a few decades until I need to start selling, but this market is a tragedy for a certain group of people nearing retirement. Good thing those executives were compensated so highly or I don't know what they would be doing right now

Edit: Sarcasm in bold

delzy said: While it seems apparent that the "powers that be" have decided to inflate our way out of this current "crisis", what will you do if you see your savings evaporate 15-25% per year for the next decade? What I'm really asking is how will this potential scenario impact your plans?

I am going to do what I always do. I am not near retirement; I expect to see more ups and more downs in the long haul. Meanwhile, I will get some popcorn, sitback, and watch the politician's flip their lids on national TV.

delzy said: While it seems apparent that the "powers that be" have decided to inflate our way out of this current "crisis", what will you do if you see your savings evaporate 15-25% per year for the next decade? What I'm really asking is how will this potential scenario impact your plans?15% losses per year means losing about 80% of your value over 10 years. 25% losses means losing about 95%. I don't have 5 times as much money as I need, and certainly not 20 times, so those results would be devastating; I'm young enough that I could eventually recover, but not if that level of losses continued much longer.

I'm mostly counting on that not happening; I don't see what the government could possibly do that would do that to my portfolio, which is mostly stocks and primarily foreign.

If you are close to retirement, you should mostly be in bonds or even TIPS funds (such as VIPSX).

Why is everyone assuming that the losses will come from stock investments? My point is that your 5%-8% returns on any investments are going to be completely overshadowed by a huge inflationary pressures if this 700B gets distributed to those who made the bad investments. If all things remain equal and inflation runs at 30% for 10 to 20 years, How will any of the baby boomers (which I am not one of) retire? I believe this is a systematic burglary of the boomers' accumulated wealth (retirement savings) and where do you think they'll be looking for their green's fees and viagra?

bravebiffy said: Off topic - has anyone heard about the topic of the North American Union or the Amero? Is that for real or some sort of conspiracy concocted by the media?

It's a conspiracy theory concocted by retards.

PMonkeyDishwasher said: delzy said: Why is everyone assuming that the losses will come from stock investments? My point is that your 5%-8% returns on any investments are going to be completely overshadowed by a huge inflationary pressures if this 700B gets distributed to those who made the bad investments. If all things remain equal and inflation runs at 30% for 10 to 20 years, How will any of the baby boomers (which I am not one of) retire? I believe this is a systematic burglary of the boomers' accumulated wealth (retirement savings) and where do you think they'll be looking for their green's fees and viagra?
Wow.

80's in the UK saw 20% inflation; pay raises were every couple of months to keep up.

High inflation sucks for fixed income or savers but those will 30yr mortgages might find percentiles of income to mortgage debt ratio appealing.

Kinda puts a monkey wrench in my plans to retire early, but then again I always planned on working some in retirement...

darkmeridian said: If you are close to retirement, you should mostly be in bonds or even TIPS funds (such as VIPSX).

I disagree with this conventional wisdom. Most people can be retired for 20-30 years, and there's no reason at all to get out of the market.

The conventional wisdom I do agree with is that money you need within the next 5 years should not be in equities. Just apply that rule throughout retirement, IMO.

I retired in my mid-50s a couple years ago, and my asset allocation in index funds is as much as ever. I see the current downturn as a buying opportunity, so I'll be putting more cash into equities.

As always, YMMV.

I will follow my grandpa retirement strategy: have 8 kids.