Economic Fallout Creates Retirement Doubts

By Ashli Sims, The News On 6

TULSA, OK -- The financial mess on Wall Street has an impact on practically everyone with a 401k.  And, for those nearing retirement, these are especially tough economic times.

A financial coach has advice especially for those people.

As the markets continue to struggle, Congress continues to debate and many ordinary investors are stuck in the lurch and watching retirement dreams slip away.

"Most people probably aren't expressing how nervous they really are. Probably a little shock. That this can't really be happening," said financial advisor Mark Butterworth.

Mark Butterworth's been in the business of investing for three decades.  He says that second quarter 401k statement was bad, and the third quarter could be worse.         

If you're a younger worker, you have time to ride it out.  But, what if you're planning to retire in a couple of years?

"For those people I would suggest they go ahead and move to the sidelines. And by that, I mean even in their 401K plans they might have a money market choice that they can move their monies to. Get out of the stock and bonds they might be in," said financial advisor Mark Butterworth.

But, money markets have also taken a hit recently.  Butterworth says not all money markets are created equal.

"And, if you do go into a money market as a solution, just do your homework and find out what does that money market hold as investments. That's what caused the money market funds that happened last week, is they had some bonds that were in Lehman Brothers and AIG and so on," said financial advisor Mark Butterworth.

If you're still shaky about the market, Butterworth says it may be time to re-evaluate.

"If you're not comfortable investing in the market, pay down debt, cash flow in order, spending plan, making sure all of those things are in order because now is the time to do that," said financial advisor Mark Butterworth.

Mark Butterworth says there is some good news out there, although it took him awhile to think of some.  He says some stocks are on sale and you can get some bargain-basement prices.  He says it's all a question of how much risk you're willing to take on.