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Leslie Blythe, who retired this year from teaching at Clark Middle School and Bonner Springs High School, is sitting tight with the funds in her retirement account.

“It hasn’t affected me yet,” Blythe said of the recent stock market turmoil, “other than the fact that my investments, on paper, I’ve lost 30 percent.”

Blythe says “on paper” because, “I haven’t gotten into that — I haven’t had to withdraw. I think that if I can stay in, the markets will recover. I think it will take awhile.”

Blythe said she'd be fine “if I can stick it out another five years.” Having a Kansas Public Employee Retirement System (KPERS) pension and a husband makes a big difference, too, she said.

Still, she’s made some changes in her spending habits.

“When I’m driving, I try to consolidate errands so I’m doing more than one thing at a time and not spend as much on gas.”

The price of food has also driven Blythe to begin using coupons and looking for bargains at the supermarket.

She and husband, Sherman Galloway, also save on their entertainment budget.

“We’re pretty conservative,” Blythe said. “We don’t go out much or eat out much. The people we are friends with have a tendency to get together at each others’ houses, play music and bring a snack. ... It’s kind of funny because we’re doing the things we used to do when were young, married people and didn’t have any money.”

Galloway, for his part, is six years from retirement. He’s a truck driver and counts himself lucky to have a Teamster’s pension.

“Assuming the Teamsters don’t disintegrate, I have a guaranteed amount, tied to the years I worked,” he said.

“Plus, for many years, I have put into a 403(b),” which he said is like a like 401(k) account.

Real estate route

Another resident who isn’t relying on investments for his retirement plans is John Johnson, who helps his wife run Wyandotte Vac & Janitorial Supply, 125 Oak St.

The Johnsons own the building where their store is located downstairs, and he said they’re planning on the revenue — from renting it or selling it — to pay for their retirement.

Johnson said he thought they “would probably stay down here a few more years” before retiring.

The real estate market “generally always comes back,” Johnson said.

As for whether real estate or a 401(k) makes a better retirement plan, Johnson said, “everything goes south and dips” periodically.

Blythe’s long view toward the current market and her own retirement account is the kind one local financial planner wishes everyone had.

Patience urged

Judy Cox is a retirement and rollover specialist at Cox and Neal LLC, 212 E. Second St.

“I’ve had a lot of calls from my clients,” Cox said. “The problem, I basically I tell my clients, is that the media is constantly feeding this negative stuff, fear and emotion — you cannot let that guide what you’re doing for long-term planning, even when it’s difficult like it is. You have to have patience and commitment.”

Cox has been logging about 10 extra hours a week, staying late in the evenings, to take and return calls from clients who are concerned about their retirement accounts. Cox said she’s been able to dissuade all but one of those who called wanting to sell the stocks in their portfolios.

“I’m the calm in the storm when I talk to my clients,” Cox said.

In fact, Cox said selling is the opposite of what a smart retirement account investor should do with the market as it is.

“It’s only a few times in our lifetime that we can get an opportunity to go into a market that can springboard us into portfolio success,” Cox said. “When you fear the market most is when the buying opportunities are.”

Cox said she has had a few clients who have invested more, not less, since the stock market dropped.

“They’ve been through it,” she said of those customers, “but those that haven’t gone through (a bear market), the first time it’s very difficult. It’s the emotion that drives them.”

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