PenPenWrites

I don't mean to be repetitious. It's just that the reality is all around us and everyone is feeling it: $3 trillion has seeped out and disappeared fromour 401ks and other savings or retirement accounts. For many of us, that loss wipes out money we had hoped would cover a downpayment for our kids' first house, their college or graduate school tuition, or tide-over money while they made their way through grad school or their first (low-paying) job. And, of course, our kids are scrambling to stay on their feet, knowing the safety net they had assumed was there is, well, not.

Not a good feeling. Here's a little statistical meat to back that up: 

Stat one: Nearly a decade ago, the Center on Wealth and Philanthropy estimated that the U.S. was on the verge of the largest inter-generational wealth transfer in history—$41 trillion, with about half if that dough being passed on while the benefactors were still alive.

Stat two: A recent Boston College study estimates that as many as 30 percent of older households are less secure in retirement as a result of the decline in housing values.

The disappearance of a sizable chunk of our generation’s money and security has left many of us resetting priorities–particularly when it comes to spending. Vacations are the first thing that seems to get downgraded. One friend reports: We've canceled the three-week trip to India; we're renting a beach house and inviting the grown kids to join us. We hope they'll suggest chipping in. We'll take them up on it if they do. 

What sort of trade-offs or steps are you taking to adjust to recent losses and keep what's left of your nest egg in tact? Have you changed your retirement plans? Travel plans? Spending patterns? Has it affected your ability to help your kids?

Not happy thoughts. But sharing ideas can help.