On Sat, 3 May 2008 20:29:00 -0700 (PDT), orangatang1@[EMAIL PROTECTED]
>
>People who were relying on credit for day to day expenses can have big
>problems when credit is restricted. Often they are forced to sell
>assets to meet living expenses. When many people want to sell and few
>have the means to buy prices fall. Cash becomes king.
Raiding the 401(k)
Monday, May 05, 2008 | 05:30 PM
in Economy | Investing | Markets | Psychology/Sentiment
Wow, I found this shocking:
"Borrowing from retirement plans is surging.
At the end of last year, 18% of workers had loans outstanding from
their plans, up from 11% in 2006, according to a survey of 2,011
full-time employees released in February by the Transamerica Center
for Retirement Studies, a nonprofit cor****ation funded by Aegon NV's
Transamerica Life Insurance Co.
With home prices falling nationwide, the loans may be a sign that
cash-strapped consumers are raiding their nest eggs to stay afloat, no
longer able to tap their houses for cash and up against their
credit-card limits . . .
Last year, 52% of workers with annual incomes of $50,000 to
$100,000 said they planned to rely primarily on 401(k) plans and IRAs
to pay for living expenses in retirement, up from 46% in 2006,
according to the Transamerica survey. The percentage counting on
Social Security also increased, to 19% from 13%, while those counting
on a company-funded pension plan dropped to 11% from 18%."
Sounds bullish to me . . .
>
Source:
Raiding the 401(k) Nest Egg
JENNIFER LEVITZ
WSJ, May 5, 2008; Page R1
http://online.wsj.com/article/SB120994246231866045.html
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