Baby boomers' golden years turn into golden fears

With more people than ever depending on 401k and other retirement accounts to see them through their golden years, the recent decline in the stock market has been a major cause for concern. Over the course of the past year alone, the Dow Jones Industrial Average has lost nearly 40 percent of its value.

While the economy will most certainly recover from the slump eventually, older Americans, particularly those who are already retired, don't have as much time to wait for things to improve. Many retirees must draw from their assets on a regular basis and are now forced to work with the lower values of their assets.

Compounding the problem is the fact that home prices have also dropped significantly in conjunction with the drop in the stock market. A larger proportion of older people own their homes outright compared to the general population, so a house or other property could serve as a source of income.

Given current conditions, however, homes are more difficult to sell and sale prices are trending downward. Home equity lines of credit, which until recently were a popular way to generate cash, have also become less attractive options to many homeowners because of falling property values.

Even some investments that were once considered very conservative, such as US Treasury bonds, have also begun to yield increasingly low interest rates. Once the economy begins to improve, however, the growth will have the most positive impact upon those with the most invested in the market.

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--Bridget O'Sullivan