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.

Click here to read more.

--Bridget O'Sullivan

Americans prepare to vote with worries in mind

As the economy continues its roller coaster ride, more and more Americans are worried about the direction in which the country is moving. With election day coming quickly, voters are likely to have their concerns in mind when they head to the polls.

The Dow Jones Industrial Average, often used as a bellwether for the nation’s overall economic health, has dropped considerably over the course of just the past few weeks. Voters could be looking to the presidential candidates for reassurance that the country will end up back on track.

Major economic issues that the candidates have been forced to address include unemployment and the housing crisis. The unemployment rate for the year of 2007 was 4.7 percent. In September 2008, however, it reached 6.1 percent, the highest it has been since 2003.

Many Americans worry that the slowdown already gripping the financial industry will spread to other sectors.

This compounds the worries of those struggling to pay their mortgages. The resetting of adjustable rate mortgages, in particular, can make it difficult for some households to pay on time. If a home enters foreclosure, the buyer loses all of the initial investment.

The Mortgage Bankers’ National Delinquency Survey reports that for the first quarter of 2008, the delinquency rate reached almost 6.5 percent of all outstanding loans. With an increasing number of Americans worrying about paying their bills, they could voice their concerns in the voting booths on Tuesday, Nov. 4.

--Bridget O'Sullivan