Since the events of the past week or so, I’m guessing many people have stopped their retirement contributions, or at least redirected them to something other than the stock market.

But I had to laugh, when my company’s investment plan suggested that a “good” money market was one that only lost 3-5%, thereby beating the S&P for the past year.

Since when is a good investment something that simply loses less than other investments?  I am not an expert but I would bet that the 10-11% “average” stock market returns we’ve heard parrotted by all investment companies are sorely beaten up by 2008.  My crystal ball says good luck getting any kind of return at all in stocks for the next 2-3 years.  If you put 401(K) money in a fund under these conditions, I’d be intrested to hear how you think that is going to benefit you?

For a while there, I started to think that we’d never need to see a paper bill again.  We can use debit cards to access our banks, credit cards when we don’t have money in the bank, and just throw those pennies you get for change right onto the street.

Well, with this credit crisis, I think it’s time to start putting your cash in your pocket, and using it for everything instead of plastic.  It might be time to start thinking in terms of a cash and barter economy.

I also think it’s time to get your money out of the bank. I mean, why mess around, just in case?  I have no problem with saying this, since I keep hearing from bankers on tee vee about how the fundamental nature of baking is going to change anyway, and the way we think about it.  All I know is, in times like this, it’s the little guy who is likely to have the most taken from him, and I don’t personally think the risk is worth keeping my money in some institution for a measley 2% or even 3%.  OK so there’s inflation – but I am just saying it might be a good idea to keep your cash in hand, on the sidelines, and look for some kind of opportunity that is safer than a bank.

As for retirement funds, I moved mine out of the stock market last year.  (I recommended the same thing to my coworkers but they just said “Oh that’s to much for me to think about”. I bet they’re thinking now!) I don’t like that it has to sit in any bank right now, but at least I’m invested in the same thing the Chinese are – Treasuries.

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