Guy who wrote book in favor of 401ks in the 90s - can't retire cuz his 401(k) is now in tatters

[JoePhilly]

35. Here is a nice chart of the DOW from 1971 to March 2012.

He says he started to invest in the 70s ... even if you pick the lowest point during the Tech bubble pops, its WAY UP.

http://www.the-privateer.com/chart/dow-long.html

Which means he was buying low for about 20 years. Even at the low point of the tech bubble (say the dip in 2003), everything he bought up until 1997 MADE MONEY relative to that point. How can he claim he lost HALF of everything he invested up to that point when that point is well above the levels 20 years prior ... years in which he was investing. Makes no sense.

Then, around 2006 he gets divorced. The Dow at that point is between 11 and 12k. He's still up because he has yet to touch that money ... so his wife gets HALF. That's what happens in a divorce. You split the assets. SO now he has HALF of what he had.

Then, sadly, he makes the mistake, and it is a mistake ... to pull MORE money out of his 401k, to buy a house that needs very costly renovations. That's not bad luck. Its a BAD decision.

Luck had nothing to do with it.

My sense is that he thought that he could buy the house, fix it up, and then make back the money his wife too in the divorce.