Posted on 12/24/2002 12:58:54 AM PST by sarcasm
The sour financial markets have spoiled Bruce Oradei's retirement.
As the bellwether stock indexes sink lower for the third straight year, Oradei is cramping his lifestyle and curtailing his spending. And, at the age of 67 -- almost seven years after he retired -- the Sun Prairie, Wis., resident is working again.
"There's a hue and cry out there. A lot of people are doing just as I am," Oradei said. "We're hunkering down."
A nationwide survey released Tuesday by AARP shows depleted savings are compelling many older Americans to work longer when they had expected to take it easier.
According to the survey of 1,013 American stock owners between the ages of 50 and 70:
* 77 percent said they lost investment money in the last two years; 34 percent said their savings fell by more than 25 percent.
* 33 percent of retirees who lost money have gone back to work.
* 21 percent of those still working said they have postponed retirement.
* Of those delaying retirement, 22 percent expect to have to work past age 69; 1 percent said they previously had planned to work that long.
* 12 percent of retirees who have not gone back to work said stock losses still might force them to seek employ- ment.
"These dramatic findings reinforce our view that we need stronger investor and pension protections, as well as better financial education," said David Certner, director of federal affairs for AARP, in releasing the survey. "Congress and federal agencies need to ensure better oversight of our markets as well as enact pension reforms to give employees more power and better information to diversify their 401(k) invest- ments."
Since it peaked in early 2000 at more than 11,700 points, the Dow Jones industrial average has plummeted nearly 27 percent. Those who were counting on investments to finance their retirements have had to shift gears and in many cases backtrack.
Wrapping Christmas presents for his five children and eight grandchildren, Oradei said he and his wife are spending about half of what they would normally for the holidays.
"You can only nickel and dime so much," he said. His monthly health insurance premium shot up 29 percent this year, to $812 from $629, and he expects another 25 percent jolt next year.
"It's not easy for those who have been preached at for 20 years that if you get a good base, you can retire and enjoy life and travel," he said. "We expected to do a few more things, like travel more to Europe and places."
But now travel is mostly day trips to schools in Sun Prairie or nearby Waunakee, Wis., and DeForest, Wis., where Oradei has been working as a substitute teacher for the last year.
"The problem is there's less work this year than last year," said Oradei. "Not because there aren't the jobs out there. It's because a lot of people who retired the last two years have come back in to be subs. So the competition is greater."
So instead of enjoying more time at his cottage up north, Oradei is working or helping his wife provide child care while their children and their spouses work. Investment losses are stretching retirees, but the reluctant economy also is squeezing younger workers. Oradei said one of his sons hasn't had any overtime in more than a year. Another hasn't had a raise since 1999.
"We just sit around and kind of quietly say we've all got to hunker down," Oradei said.
As a former lobbyist for the state teachers' union, the Wisconsin Education Association Council, Oradei knows a bit about how government works, and he wonders watching the scandals on Wall Street how financial markets will regain a sense of honesty. He is not optimistic that his investments will turn around anytime soon.
"My cup is half full. That's what I tell my kids," he said. "It's never half empty. It's always half full. I've got my health, and my wife's got her health. We just plug along."
What the hell is this idiot saying? He knows about government and therefore the market is screwed? I guess this financial moron never thought of going short equities, dollars, or long yens euros, oil and gold...what a numbskull...tough crap...learn about the market(S) or quit your bitching....There are piles of opportunity in the markets...pick the right one, the right issue and right direction and you can turn dirt in dollars...every single day of the week, and in some cases 24 hours a day
Shadup!
I am so sick of this line BS...who said they will if ever? Is this nitwit just gonna sit and watch his holdings wither away...if so he deserves to die penniless and poor...Its called a stop loss Moron...put it at 10% on every thing you enter...and don't think just act when its hit...your not smart enough to think...
I taught a rich friend of mine about stop losses and shorting 3 years ago...he has damn near doubled his account on the way down.....these bitching moaning complainers make me sick...
don't mention such things
first, you'll be attacked by the rose-colored glasses crowd, many of whom have had theirs permanently installed by a professional
second, you'll let everyone in on the secret that markets go down a hell of a lot faster than they went up, and they'll begin to understand how much fun those of us who have been short for the last three years have been having
then they'll start demanding that you explain futures and options and options on futures to them
which'll just confuse 'em
better to remain silent and let the whiners whine some more as the last 25% of their equity goes up in smoke....
As I've seen my SEP decline over the past three years, I haven't worried about it too much, because I doubt I'll be able to retire.
God took care of my retirement concerns by blessing us with our third child ten months ago. By the time Nathan graduates from college, I'll be in my 70's! Accordingly, I have renamed my SEP 'Nathan's Beer Fund'.
My brother could have retired from the RR a couple of years ago. I asked him very seriously what he planned to do. He's still on the RR. I retired from the Army years ago and took a year off. Gets old real fast. I've got a place to go 3 to 4 days a week. If I didn't have that, I'd deliver auto parts, or somethin'.
You know what I do when some of my bitter pub mates bitch and complain on some of the really big down days?
I go over to the news stack at the end of the bar, grab a paper....open to page that has a chart.
I get all of their attention...say SEE THAT?...DO YOU SEE THAT...and their eyes well even deeper...they cant even find the bottom of their glass for all the tears they shed...I then calmly flip the newspaper up side down...and say in an emotionless tone..."Looks like a rally to me. Figure it out...or get out"
I for the most part have stopped such priceless free advice...and as of late have looked upon them as prey...
My kids should be finished with college by the time I hit 50 (4 more years). That is the major drain on the household finances right now.
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