The once-guaranteed investment rules have changed remarkably during the recent economic downturn. It was often common practice to assume that stocks would always rise over the long run, that bonds are for retirees and investors with little desire for risk, and that companies rarely cut their dividends.
Personal savings has been boosted to an all-time high this decade. Due to the financial crisis, more people are moving their money into savings. Government data shows that we have reduced our debt and cut our spending.
So where do you go from here? How do you start rebuilding? Financial advisers suggest putting 10% to 20% of your income into savings and retirement.
This arrangement, although not as good as arrangements in the past, still promised many a comparable retirement lifestyle. But with the recent economic downturn, many people are forced to delay retirement, lower their standard of living, or in many situations, both. Recent dips in the stock market have translated to significant drops in 401(k) investments for most people.
