How a US debt default could hit your finances

Excerpt: “If the debt ceiling stalemate doesn’t end, retirement accounts could be very hard hit. A report out Tuesday from the American Society of Pension Professionals and Actuaries predicts private pension plans will take a hit of more than $2 trillion (losing in excess of 20 percent of their value) if the financial markets tumble as a result of a default.

This is a very scary proposition for seniors, but also should be a wake-up call for every investor. Reallocate retirement-plan assets to make sure they are well-diversified among many different types of investments.”