Lakhani, a business systems analyst, started investing for retirement as soon as he got his first paycheck five years ago, putting his contributions mainly in international stocks and growth-oriented mutual funds.
But since the crash of 2008, he's gone mostly to cash, despite yields close to zero.
"After seeing how quickly things can change in the market, I've learned to be more defensive," Lakhani says.
Plus, he and his wife Asma, an accounting student, are saving to buy their first home, so they want to keep their down payment money safe. Eventually he'd like to get back into equities, but for now he's standing pat.
"I figure stocks will do better when unemployment comes down and people stop worrying about the economy," says Lakhani. "But for now, I still have no confidence in the market."
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