The stock market is feeling like a Friday the 13th movie. Just when you think it can’t get any worse – Jason shows up again. The amount of wealth that has been destroyed over the past few months is beyond my comprehension. Personally, I think the greed of a few on Wall Street has damaged Main Street for many years to come.
Imagine the 20 year older investing their first $1000 into the market watching it get sliced in half in less than a year. How about the 35 year older, who has been religiously participating in their company’s 401K program, suddenly realizing that their money would have been better off in a savings account paying 1% for the past 10 years.
What about the hard working man or woman, one year away from retirement, seeing 40% of their savings disappear in less than a year. Maybe they shouldn’t have been 100% invested in equities that close to retirement, but Wall Street’s latest concoction wouldn’t have helped much. Fidelity’s Freedom 2010 fund, designed to allocate funds across asset classes based on your retirement date, is down 25% year to date.
Many will give up on the stock market and I can’t blame them. I think that a better approach would be to give up on brokers and financial advisors. Become investment literate. Learn to make your own decisions. Why pay someone to lose your money? You can do that on your own without paying a commission.
I still believe that investing in the market is a great path to prosperity. It is up to you to determine if it is a path to your prosperity or someone else’s.
Check out The Time & Money Report. Many of my subscribers avoided this implosion.