Here's some good news for those of us who will be relying on our 401k investments when we finally retire. The Dow Jones Industrials close above 9,000 today -- the first time that's happened since January. So my retirement account, which I've been calling a 201k, is quietly moving back to being a 401k.
It's been rather depressing the past year as we've watched our accounts lose 40% of their value, but that is changing.
I was talking about retirement to a guy who joined our twosome the other day on a golf course near Pismo Beach. We were all vacationing out of the San Joaquin Valley heat. He works for an oil company in Bakersfield and said he was going to retire this year when he turned 60 in a few months. But the stock market crash delayed his retirement because he's fully invested in his 401k. A lot of us know what he's talking about.
It's not as big a problem for me because I don't plan on retiring until I'm at least 65 so I have five years to make up the ground lost in my 401k account. Not so for those who had an out-plan for this year.
Remember all those people who thought we should privatize Social Security or give the money to workers and let them invest it? You don't hear much from them now. That was one of many dumb ideas proposed by President George W. Bush.
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I think the economy is beginning to turn. We must be patient but there are good signs out there. Go, Dow, go. At age 60, I need all the stock market gains in the next five years that I can get.
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