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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Monday, September 21, 2009 A look at personal finances shows some hopeful signs By Mike Benbow Herald Writer During the seasons for presidential elections, candidates often ask you to ponder the question, “Is your life better than it was four years ago?” Asked that question today, I’d have to say no. Four years ago I thought I’d be able to retire sometime during this century. Four years ago, my truck was newer (and ran better). Four years ago, I was younger (and ran better). But four years is an awfully long time. I’ve been thinking lately about whether my life is better now than it was earlier this year, and the answer is an unqualified yes. For one thing, the stock market isn’t in freefall and has recovered from its slide into the upper 6,000s and is making a run at 10,000 lately. It looks like I may be able to retire in the next decade, although the jury’s still out. People smarter than I am expect the market to drop again at the hint of any bad news. And there likely will be some of that still to come. The rise in the stock market was one reason given for a rise in wealth in America this spring. The Federal Reserve says household net worth grew by $2 trillion to $53.1 trillion in the April-to-June quarter, not just because of the stock market, but also because home values and savings accounts also grew. Home prices are still falling here, but there have been other hints of good news lately, and I’m glad to see them. For one thing, unemployment stayed at 9.6 percent, even though Boeing and other aerospace firms lost 400 jobs in August. We’re going to have to start adding jobs before I start thinking the recession is over, and we’re still a ways away from that. Donna Thompson, the state labor economist who covers Snohomish County, said last week that the construction sector has lost 7,400 jobs since in peak in 2007. She also noted that since the late 1970s, Snohomish County’s annual jobless rate has also been lower than the state average. This year, she said, the county rate has been higher than the state’s and it looks like it will be that way for the year for the first time in decades. Our heavy reliance on construction and aerospace are likely why we’re looking worse than the state as a whole right now, Thompson said. And she said those areas will need to improve before things get better. With the airline industry still in the dumper and no word on a second 787 assembly line, it may be a while before we shake off our recession. But I’m still feeling better about things because I think I’m in a lot better shape to handle tough times than I was earlier this year. I’ve paid off my credit card debt, have so far put off replacing the old truck and have really pared back on my other spending. I’ve been lucky enough to hang on to my job, and that really helps. I believe I’m in much better shape to handle financial problems than I was earlier this year. I hope you’re able to say the same. Mike Benbow: 425-339-3459, benbow@heraldnet.com. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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