by Lana Stockton

Created on: April 30, 2009   Last Updated: January 07, 2010

When the 21st century rounded the corner, it brought with it a whole new approach to retirement planning. The old ways no longer applied.

In the 1960s the plan was, work hard, save hard and pay off the house. The biggest retirement decision was how and when they wanted social security kick in.

Did they want to start with smaller payments at an earlier age or wait longer for the larger monthly payout? For most people, the idea of investing in the stock market was out of the question. Mom and Pop didn't know much about the stock market or investing in it. The daily newspaper report of the NYSE and NASDAQ read like chicken scratch to the average adult. Yes, saving. That was the key.

But saving for what? The idea being kicked around at the time was, save in order to supplement social security payments so a person could maintain the same lifestyle after retiring. A strong savings account was to be the insulation that would keep the coldness of poverty away. It seemed like a good plan at the time.

In the 1970s retirement options remained about the same, except that more employers were talking stock options and 401k plans, with matching contributions. The general public, by means of having to consider these employer options, began to familiarize themselves with investing. The stock market was being brought to, and introduced at, their places of employment.

In the 1980s and 1990s, people became more familiar with how investing worked, it became the norm to dabble in the stock market. Investment planners made themselves available in banks, credit unions and strip malls. The stock market was no longer a mystery. It dawned on the regular guy that he could have been investing in the stock market all along.

The rest of the story is no secret. Like peeling back the layers of an onion, the mystery of Wall Street began unfolding. There were companies that looked pretty good on paper, but didn't exist. People were pumping money into imaginary companies.

The computer industry and the Internet took off and, like a power surge, dot coms flashed up, only to fade into nothingness. The average guy never expected, therefore had no way to brace himself, against the fantasy life of investing. Where did his money go? It kind of poofed into thin air. Poof! Money's gone.

Now, in the 21st century, it's back to square one: the old ways of work hard, save hard. But now the save hard part has become more difficult because of massive unemployment, sky-rocketing prices and the social security money quickly drying up. Their savings accounts may be all they will have to rely on. Square one, with a twist...no spending. No more spending because the savings account may have to carry the full load of retirement.

How to prepare for retirement? Save hard, spend nothing.

Learn more about this author, Lana Stockton.
Click here to send this author comments or questions.