My Two Cents

Read it–and weep

Chris Farrell Oct 22, 2008

These numbers from Alicia Munnell, economist at Boston College, are unbelievable.

The stock market, as measured by the broad-based Wilshire 5000, declined by 42 percent between its peak in October 9, 2007 and October 9, 2008. Over that one-year period, the value of equities in pension plans and household portfolios fell by $7.4 trillion. Of that $7.4 trillion decline, $2.0 trillion occurred in 401(k)s and Individual Retirement Accounts (IRAs), $1.9 trillion in public and private defined benefit plans, and $3.6 trillion in household non-pension assets.

Yes, you read that right. The average American worker is exposed to too much risk when it comes to their retirement savings.

You can read the full report here.

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