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Sunday, October 25, 2009

Some financial thoughts

Did you know that approximately 32% of Americans have spent less money over the past few months and plan to continue to do so in the future? (Source: Gallup Poll, May 2009) That probably doesn’t include the fools sleeping on the floor at Scottsdale’s Fashion Square this past week to be the first into the new Microsoft store.

Almost 66% of consumers feel that advertising agencies are partially responsible for the current economic crisis because they persuaded consumers to make purchases beyond their means (Source: Harris Interactive Inc., April 2009). Please! This is a typical 21st century reaction from weak willed losers who always look for someone else to blame for their own mistakes. "Gee, I would never have bought that 50" flat screen TV if they didn’t make me. It’s not my fault!"

In a recent survey, the average 401(k) plan investor lost 28% of his/her balance in 2008. Approximately 63% said their confidence in their ability to retire had declined in the past year, and 15% said they were worried that they would never be able to retire. Participants believe the best way to recover losses is to save more or work longer (Source: Barclay’s Global Advisors, April, 2009). Sounds logical to me even though it is unfortunate.

A recent study reveals that today’s pre-retirees will need to postpone retirement by 4.2 years on average to make up for losses caused by the housing market and stock market. That is the first time in history that the retirement age has significantly increased in America (Source: Age Wave, 2009). I’ve see lots of old timers sacking groceries at Safeway. I’m sure they are not doing that because they enjoy that type of work.

To quote the late great actress Bette Davis from her film, All About Eve, (1950): "Fasten your seatbelts; it's going to be a bumpy ride."

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