William Lockett spent his life investing not in Wall Street but in the government that's rescuing it.
That's why he's not worried about his nest egg shrinking during the current financial crisis.
"If our government fails, then I lose it," said the 69-year-old retired state and federal employee. "I sympathize with the people who've lost their life savings."
The losses have been massive in the past 15 months, particularly since mid-September. Congressional budget analysts estimate Americans' retirement plans have lost $2 trillion, or 20 percent of their value, in the past 15 months.
Mr. Lockett has money in government savings bonds, which he started in the 1970s, and a low-interest, Federal Deposit Insurance Corp.-protected savings account.
With the three government pensions he earns, along with Social Security and his wife's salary from Richmond County schools, he said he's had to make only minor adjustments to his lifestyle.
"As all Americans have, I've cut back on my spending," said Mr. Lockett, who works part-time as an insurance salesman and financial counselor to stay active. "I walk a lot of places I used to drive to. I'm cutting back on utilities, conserving."
The financial meltdown has had a greater impact on Mary Holmes, who has been investing in her 401(k) for 20 years. She has seen it lose 10 percent of its value and hopes for a rebound by the time she's ready to stop working.
"I'm going to invest for another 15 years and then use the money for retirement," said Mrs. Holmes, 50, a registered nurse. "I'm just going to ride it out. If it all collapsed, we would still have our health and families."
Reach Johnny Edwards and Stephanie Toone at (706) 724-0851.
Comments
It is very important to use market timing. If no other system is used at least use winter/summer timing. This link will show you how well it works. http://www.streetsmartreport.com/comm4.html Remember if you want to work when you are old; do buy and hold.
I don't think we have felt the effects of the melt down yet -- I think it will be 6 months to a year before we know what the real damage is and I think the out come of the Presidential election will have a big impact on which direction the economy take -- up or down. We don't need to increase taxes and expand the role of government now. I believe as the world economy fails we will hear more talk of a one-world government. There is already a lot of talk now about the world governments working together to solve the problem. The Democrats have always leaned toward socialism. Can you imagine what they would do with complete control of our government now? I am sure they would bring about CHANGE, but will it be the kind of change that is good for America?
I bet the democrats probably think people like Mr. William Locket were lucky and the government should probably tax their saving and spread it around to the people that were not as lucky with their retirement. This would be the Liberal thing to do. I am not suggesting the government do this. When Bill Clinton was in office he was working on a tax plan that would require people that owned their homes and had no house payments to pay higher taxes. His way of thinking the money you didn't pay for a house payment was like income -- the amount of money you were not paying for rent or mortgage payments would be added as income to your taxes. I have heard Bill Clinton discuss this on TV. I am glad that was never passed. This is the way the Liberals think.
Very true Turner, but the sad part about it is there appears to be a great number of people who are either brainwashed or just plain idiots. For the life of me I cannot understand what these bo supporters are thinking. Maybe they actually see hope in socialism. I really don't know but I can tell you If they do not wake up this country is headed for trouble!
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