The new economy

Economic volatility and uncertainty continues to plague consumers, especially those with fixed incomes. We surveyed a group of seniors recently to find out what their psyche is concerning the volatility and how they’re handling it.

If you have thoughts you’d like to share with us on how you’ve worked with retirees and coached them regarding the economic, please leave a comment below or email me at [email protected]. The following are highlights from those responses we have received so far:

Yes. We have downsized. I’d say, in layman’s terms, we’ve closed ranks. We had some property and we also had some investments out there that we have since sold off. Now, we have more of our assets in cash and in an annuity we bought two years ago. I’ve seen people time and time again trying to hit the homerun. After doing this for 40 years I don’t think we have homeruns. We have to be happy with what we do have and make the most of it.

John, 65
Dallas, Texas

No, I haven’t. I thought a lot about what I should and shouldn’t do. I don’t have kids and my husband passed away in 2004. I guess I could give money to charity. That’s one way to look at it. The other is, and this is what I’ve been doing, since I can’t take it with me, I have decided I’m going to enjoy the golden years. I am concerned that my investments are down. I lost about 20 percent of my total assets when the market crashed in 2008. But, I managed to keep a substantial amount in my IRA. I’ve used that money to enjoy trips and cruises with a group of my friends who are also widows.

Nora, 71
Portland, Ore.

No. I really have not made changes. I have been with an advisor for years and we agreed on me taking a very conservative approach to my retirement and investments. Because I was in a good position and had my money protected in insurance I haven’t gotten rocked by any of the markets. In 2000 I took some hits when the market crashed and I learned my lesson then. I didn’t get hit too hard because I am conservative. That’s the way I was raised. I’m not going to ever get rich but I won’t have my hand out either.