401(k) Follies

Many of us have tried to save and plan for retirement.  We’ve read the books about how investing in mutual funds is one of the best ways to maximize your return and grow your nest egg over the long term.  We’ve followed that advice, and many of us have stayed the course, through up years and down, trusting in the historical fact that the stock market will produce long-term gains that outstrip every other investment vehicle.

As I sit here tonight, amazed that President Obama and congressional leaders have taken us to the brink of apparent default, I wonder:  If the debt ceiling is not increased, if the United States defaults, and if ratings agencies downgrade the investment value of United States government securities — with the likely negative ripple effect of those developments throughout the economy — does anyone doubt that the stock market will plunge and our carefully considered long-term investments are going to take a huge, unnecessary hit?  And if that inevitable hit occurs, how long will it take for our retirement funds to recover from it — if ever?

I think the dumb brinksmanship we are seeing from every one of our political leaders right now is infuriating, but I cannot imagine how angered I would feel if I were on the eve of retirement and saw those leaders taking absurd risks with the value of my hard-earned, soon-to-be-needed retirement nest egg.  It’s one thing to believe that our elected representatives are unconcerned about the average schmoe, it’s quite another to see that they are gambling with your money and your future solely to further their partisan political positions.

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