the working life Add comments

A comment was made that I sounded mad on the last 2 posts. Truth of the matter is, I am quite pissed. If there’s a dispute, it affects a few people. If there’s a crime it affects a few people. If Enron or AIG folds it affects our entire economy. The first time in my career my 401k took a huge hit was when Enron imploded. I still remember Ken Lay assuring employees that the company’s financial situation was fine and it would bounce back. We all know the outcome and the government’s response was the Sarbanes Oxley Act that supposedly sends auditors to companies to make sure what they report is true. The biggest lesson learned from Enron is to diversify. Lesson learned my portfolio at that point was diversified to 4 different funds. Today’s financial crisis still has no resolution and it affected every single stock/mutual fund. There was no way even diversifying I could prevent the dramatic drop in my 401k. Let’s put this in perspective of dollar value. Both times my 401k took a huge hit it was equivalent to a luxury car. Put those 2 together and I could be driving a car I would only dare to purchase if I had won the lottery. All that built from almost 10 years of investing in retirement. Bit outrageous huh? Imagine if I was 5 years to retirement when the economy took a huge dive. Wouldn’t you be pissed if that was you?

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