rjb, From my discussions with my friends at the local coffee shop, we're doing pretty good compared to most who have investments in their 401ks and IRAs, but of those people are still in the work force.
I've always tried to be prepared for the worst, and had at least 40% invested in bonds, because that's what most financial pundits have been preaching for retired folks ever since I can remember. With the market down on equities, our percentage in bonds increased, but I did buy back about 25% into equities when the market hit about 9,000. That was my "low" target when I predicted the market last year, but that was before all hell broke lose two weeks ago.
It takes patience and understanding the macro-economics of not only the US but also the world's economies to understand the impact of the financial crisis that's hit most developed countries. I just know we haven't seen the worst of it yet, and much will depend on how consumers regain confidence in our economic environment, primarily based on the availability of liquidity. It's going to be slow going for quite awhile - in my estimation.