I had this conversation with a friend recently:
Friend: "I hate my cell phone. I want to get a new one, but I can't justify the purchase because we're in a recession."
Me: "I'm not sure about the economy, but are you in a recession?" (I asked this knowing that he has a stable job, and is a conservative spender)
Friend: "Well no, but I guess I'm a worrier."
As it turns out, he's not alone.
An article in yesterday's Investment News indicated that 4 out of 10 adults are holding off on major life decisions because they are worried about the economy.
"Forty-one percent of adults had delayed making major life decisions such as home ownership, marriage, having children and retirement because they were financially strapped or nervous about the economy."
Are four in ten Americans personally in a recession? Unemployment numbers, foreclosures, and personal bankruptcies are all up. Those are certainly major incidents of "personal" recession. But 4 in 10? I doubt it.
I can understand delaying the decision to buy a house in uncertain times. Retirement, definitely. We find among our clients who are nearing retirement that the probability of successfully maintaining the desired retired lifestyle (as measured by Monte Carlo analysis) is always substantially improved by one more year of working.
But to delay getting married? That's just crazy to me. Actually, it is more a statement of expectations about the size and grandness of the wedding. A small simple wedding wouldn't cost much, and can be done, recession or no recession.
As for my friend? He's still dropping calls.
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