Picking up the pieces after the crash

Saabdub

A little bit of micro-economics. I'm a middle aged, middle class salaryman with a mortgage and a defined contribution pension scheme. My pension fund is down 44% and falling, my direct equity investments are falling, my savings interest is only just keeping pace with inflation. The value of my house is declining, the depreciation on my car (2.3l petrol) has increased. I'm facing increased direct and indirect taxes and as I'm working in the development sector I may be working a 4 day week from January. Oh and no chance of an Xmas bonus this year.

So, I don't panic and wait for the dust to settle, what are my options?

Saabdub

lolkelly

Saabdub wrote: »

A little bit of micro-economics. I'm a middle aged, middle class salaryman with a mortgage and a defined contribution pension scheme. My pension fund is down 44% and falling, my direct equity investments are falling, my savings interest is only just keeping pace with inflation. The value of my house is declining, the depreciation on my car (2.3l petrol) has increased. I'm facing increased direct and indirect taxes and as I'm working in the development sector I may be working a 4 day week from January. Oh and no chance of an Xmas bonus this year.

So, I don't panic and wait for the dust to settle, what are my options?

Saabdub

Look on the bright side, at least you're not 1-5 years from retirement and stuck in the same situation. If you can hold on to your job, then its a matter of riding it out IMO.

kmick

Get drunk? It might not help the overall situation but it makes you feel happy for a short time.

Saabdub

kmick wrote: »

Get drunk? It might not help the overall situation but it makes you feel happy for a short time.

Did that woke up with a sore head.

Saabdub

SoCal90046

Saabdub wrote: »

A little bit of micro-economics. I'm a middle aged, middle class salaryman with a mortgage and a defined contribution pension scheme. My pension fund is down 44% and falling, my direct equity investments are falling, my savings interest is only just keeping pace with inflation. The value of my house is declining, the depreciation on my car (2.3l petrol) has increased. I'm facing increased direct and indirect taxes and as I'm working in the development sector I may be working a 4 day week from January. Oh and no chance of an Xmas bonus this year.

So, I don't panic and wait for the dust to settle, what are my options?

Saabdub

When it comes to investing in the markets, I go by the maxim that "patience is genius in disguise." I am staying invested, but aside from contributions to a retirement account, I haven't put more money into the market for a while. Once this turmoil settles--maybe early next year--I am back in.

20goto10

Spend it all. Everything you've got. You can't lose it if you're spending it.

eamonnm79

Its probobly little comfort but there are many people who will be loosing their jobs and if there is a big public sector cut then There are going to be alot of people vieing for very few newly created jobs. those who have a job (even if it is only for 4 days) will look comparitively wealthy.

Run_to_da_hills

What crash

You ain't seen nothing yet :eek:

seamus

Batten down the hatches. That's all you can do really.

Lehmann brothers was the beginning of the big drop. 2009 will be a tough year for anyone who was already in a dangerous position, for everyone else it's just a matter of counting the pennies.

It's not going to be soup kitchens and mass emigration again.

You're middle-aged, which means you probably have 20-25 years left before retirement. So don't worry about that pension fund and just continue doing what you're doing. Imagine if someone had asked the same question in 1983 and was worried about the performance of their investments over the next 20 years...!

silverharp

pay down debt, save more and spend less, use any bounce in he markets to sell as I expect another leg down in early 09.

this is a once in a lifetime event, whatever investments woked in the 90's and up until recently wont work now.