The Dow had a historic one day gain of 936 points and my account also had a historic one day gain of $83k. Don’t let this number impress you, the gains were made by long term mutual funds I’ve been holding.

The funds are still way off from their highs and it will probably take 1-3 years before they retest their highs. Let this be a lesson to everyone who thought that mutual funds were safe and that tucking money away into a 401k was a safe way to retirement.

Millions of Americans have seen their retirements wiped out in the last few weeks. So what is a safe way to save for retirement? If you do have a 401k through your company, investment a minimum amount. Take some money out of your salary and invest it yourself. No one will ever watch your money better than yourself.

If you don’t know how to invest this money, get a book, search online, there is always a way if there’s a will.

By Al Thomas

You are 55 years old (or somewhere aroundthere) and your company is going to force you toretire at 65. You have $35,000 saved in your401K and that’s all. The house will be paid forby then so you will have a place to live. Thecompany pension will pay about $1,000/month andso will Social Security. What will my life stylebe like at that time?

Let me give you a clue. You are going to needjust about as much as you are making now evenwith the house paid for. If you are lucky youmight have health insurance with your pension,but don’t count on it. You hope Uncle Sam willhelp out. But don’t count on it. [Read more →]