General comments from Glenn Wiggle

Clearly we are in historic times and the economy if facing a financial crisis. We are not out of the woods yet, but we have been through difficult times in the past and the stock market has always gone on to higher ground. The key thing that people should remember is that if you are going to invest in the stock market you should make sure you maintain a fully diversified portfolio and that you have a long term time horizon. The most successful investors are those that invest for the long term, maintain a consistent strategy, and that invest systematically through things like their 401K plans.- Glenn Wiggle

5000 in saving

You may want to consider a CD structured as a Transfer on Death account or TOD. Almost all banks will waive CD penalties due to death so you shouldn't need to worry about your son having access to it. You could also consider Fixed annuities or govt. bonds. This is assuming you want a farely riskless investment. - Glenn Wiggle

Hi ellez: It's usually best to contribute as much as you can to retirement plans: They are tax deferred. Just make sure your investments within the plan are adequately diversified and keep tabs on the performance. Regarding your cash, the bank where it's placed is important. By spliting into various accts. you can increase coverage. The government is looking into increasing FDIC limits. -RL

Deferred Comp

I think you need to figure out when your going to need to start drawing money from your deferred account and what that amount is. Even though your retired, you're only 52 and will have a long time to make this money last. I would seek professional advice to do some homework. - Glenn Wiggle

Heather in Hamburg

Great question. Given that your only 41 years old and likely won't access this money for 20 years I would continue to contribute to the equity funds that you have been contributing too. If you are able to, you can even increase your monthly investment. With a 20 year time horizon, you should look at this as a 20% off sale. - Glenn Wiggle

Purchasing new home in this economy gets tricky, but you seem to have your bases covered - adequate down payment, etc. Just remember, a home is a long term investment and your shelter. Given current economic environment, prices (depending on location) may drop before they go back up! -RL

Tony

Alot obviously depends on your time horizon and your tolerance for risk as well as what Vanguard fund that you're in. Who profited from your loss, probably no one as the market lost over 1 trillion in value. - Glenn Wiggle