The Labor Department release on consumer prices showed a 1% drop last month in the past month. The change was largest since 1947 and comes along with troublesome news, such as lowest home builder sentiment, markets trading at new lows, and a pending automaker bailout. With the financial crisis damaging the US economic foundation, you may wonder what’s in store for you.
In tough economic times, it’s important to make sure we’re doing everything we can to save money and not spend unnecessarily.
As we mentioned in previous articles, we know that our government only represents about 30% of our retirement income, the company retirement pension plan offers another 30% and many of us do not have one. It is up to individuals to invest wisely short and long term in order to make up for the short fall if he or she would like to live comfortably after retirement without giving up some retirement plans.
Most people like to keep there retirement plans simple. Show me the bottom line do I have more or less than last years’ statement.
Every investor wants to buy an investment that continues to go up in value to reward them for the risk they are taking by investing. The reality of investing and the associated risks that come with investing is sometimes our investments will go down in value, sometimes they stay down and sometimes they rebound quickly. When our investments shrink in value to the point where they are less than what we bought them for, new choices become available to the investor with strong tax considerations.
