[The Iceman Cometh]

Clayton is about to retire. He lives in a small city in the South and figures he could live comfortably the rest of his life on his savings, which are mostly in the stock market.

I am not a financial genius, but I always thought the closer you get to retiring, the more you want your nest egg in something like bonds.

Should I feel sorry for someone who is realizing the risk inherit in the stock market?

I for one won't be opening my 401k statements for about 5 years.

[sheana]

I have been yelling at the tv for days......investments are not ‘safe’, they are inherently risky! I understand that people don’t like losing money but sheesh!

[nufsed]

If you are contributing above your employer match level, perhaps you should put the rest into something with tax free gain, like insurance.

[mlocher]

I am not a financial genius, but I always thought the closer you get to retiring, the more you want your nest egg in something like bonds.

Should I feel sorry for someone who is realizing the risk inherit in the stock market?

Bonds have been taking a beating because of the sub-prime market. Your feelings are your own. I will not impose my beliefs on your feelings. (smile)

[supercat]

I am not a financial genius, but I always thought the closer you get to retiring, the more you want your nest egg in something like bonds.

The irony here is that I suspect that bond funds are more dangerous in this market than many types of equities. If many of the purchasers of some type of bond also bought credit default swaps to "insure" it, any shakiness on the part of the "insurer" will tend to undermine confidence in the bond as well. Some companies' equities will become totally worthless as a result of their having bought toxic paper, but many other companies' equities might escape relatively unscathed.