Housing Crisis Affects Retirement
The U.S. housing crisis has caused much hardship and now, experts say that it has begun to affect many American’s retirement possibility and prosperity. Indeed, in addition to losing their homes and businesses, many citizens have also seen a marked decrease in their 401(k), IRAs, and other investments.
Stocks and investments fluctuate constantly; in the 90s, tech stocks were hot, in this decade, real estate was the favorite choice. Many of those investors who chose real estate have now found that, though they may still own their home and live a relatively comfortable life, their portfolio has likely lost value. In fact, CNN Money goes so far as to say that “big bets on the investment du jour are more often a recipe for downsizing your wealth than growing it.”
Indeed, no matter how much you invest, you should always keep some money in hard-cash saving. Your home, though it used to be a sure thing, can no longer be considered an unbeatable investment: A home’s value, especially in today’s market, can show bloated values one day and a shocking loss almost the next.
As we move into a new age of investment, be wise and diversify. Don’t be afraid to invest in the market or to purchase your own home, but remember that cold, hard cash invested in interest accounts will never lose value, except against inflation.
This entry was posted on Friday, September 19th, 2008 at 4:10 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
