Down Economy Divides People Into Two Camps
BOSTON (CBS) – An interesting result of this maddening whipsaw of an economy: it divides people into two camps.
On one hand, you have those who are terrified, and on the other, those who see an opportunity. And it’s all based on their ages.
At 32-years-old, Jeff Klein is among the latter.
WBZ-TV’s Jim Armstrong reports
“We’ve been talking, my wife and I, about how we can sort of turn the whole thing off,” explains the Roxbury resident. “We’ve got somebody managing our money. I think it’s great to know that the market goes up over time, so if we can avoid these daily fluctuations then I think our lives will be a lot better.”
Klein makes every effort to avoid news of the market’s now commonplace wild swings. That’s a privilege he has, based on his age.
“My 401(k) is not going anywhere anytime soon because I’m not cashing in until hopefully I’m 60 or something like that,” he says. “Whereas I imagine folks right now are thinking in the short term and I don’t know what it’s going to look like a year from now. But I know that in 30 years I am going to be all right.”
25-year-old Julie Reir is in the same boat. She actually works in the financial industry, so she has access to some expert advice.
“I have a very good financial adviser that I work with,” said the Marlboro native. “What they’re kind of giving people advice to do is long-term investing right now.”
But long-term is not an option for people who are decades closer to retirement.
People like Boston’s Rita Sacco have no choice but to feel they’re at the mercy of the markets.
“It’s very scary,” Sacco says. “My retirement, my husband’s retirement, we don’t know what we’re going to do. We don’t know what’s going to happen.”
Her advice? “Take it day by day and hope for the best.”