I’ll tell you where its coming from and you won’t like it. The first thing you need to know is that your IRA and 401k or 403K are not Federally insured. There are a few execeptions, Union Bank has a FDIC IRA that I got a pamphlet on yesterday.
Your retirement savings are being invested by mutual fund managers that have never seen a bear market. The last one started in 1968. These people are buying the Fanny Mae and Freddie Mac bond packages. They are not federally insured and probably never will be. It is implyed that they are Federally insured but they ain’t and probably never will be without an act of Congress.
So what you are looking at is a repeat of the S&L fiasco from 10 years back.]
The only problem with it this time (if your 60 years or older), you may be dead before you can collect what you put in.
The other irritating thing, the losses are not tax deductable. Go figure!!!
