Volatile Markets Spark Worries for Local 401K Investors

Flo Jackson, Worker, "It worries me you know I'm not really sure how things are going to go. Hopefully maybe when the next presidential election some things will turn around I'm hoping."

UTC economics professor John Garrett says things will turn around...just not likely any time soon.

John Garrett, Economics Professor, "We are in a period where you should not expect your 401 K to do very well for the next little while."

He says the numbers indicate we're in a recession right now and it seems to be getting slightly worse.

Garrett, "If we have a normal one people are un prepared for the economic pain and devastation that they'll face for two or three years. The recession will only last probably a year. But the period of low prosperity will last three or four years."

So now's the time to take cover...

Garrett, "Batten down the hatches and prepare for stormy weather."

By not taking on new commitments, saving several months of income, making sure your job's secure, finding a back up job if it's not, and if you're unemployed prepare to lower your expectations.

Garrett,"The sooner you do it and under the less pressure the better off you are."

Many we spoke to have already started.

Saju Andrews, "We try to save any which way we can. Try to reduce driving and anything we can to cut down on expenses."

Dr. Garrett adds today's market drop was bad, but not nearly as bad as predicted.