Is the world coming to an end or just my 401 K?

The financial chaos that has occurred over the past several weeks has many of us wondering what is going on? It is a good question when one considers the fact that many of the experts in this area don't know either. You may have an opinion or two as to whether or not the federal government should have stepped in a offered 750 Billion dollars to the credit institutions of this nation. However, it does appear that most legislators saw little choice but to support the measure as they voted with one hand and held their noses with the other. I just wanted to remind all of you over 50 as I will be in two days that the money is not all gone and most of it wasn't yours to begin with.

Allow me to explain. Most of us have money taken out of out pay and immediately invested into a diversified investment plan known to us as a 401K. All this came about years ago when company pensions began drying up as companies went out of business. As a result congress instituted an investment plan for companies to allow employees to submit a portion of their salary for the purpose of their retirement. Sounded like a good idea and most companies went for the plan and today most Americans now are invested in wall street.

During the 80's and 90's when the stock market was going into the stratosphere everybody felt good about their retirement plans and some felt so good they even began investing outside their 401K, that is, investing in the stock market in general. Some people felt so confident they even became day traders. Many ofter boasted about all the money they had accumulated over the years and how they may be able to retire early and enjoy the good life. Today those same people aren't heard from. That's because they passed out after opening their monthly statement.

However, I have to wonder how much of their money they actually lost? I am not a finance expert and have no formal training in economics it's just that I believe there is a misunderstanding about what is owed to an investor and what is entitled. Each of us is entitled to a paycheck as long as we are employed within the law. That is an entitlement. You work, you get paid. When it comes to work you are physically or mentally applying a skill to an end that will benefit your employer. In return your employer is paying you for your services.

Investing is a little different and it's not an entitlement. When it comes to investments you are submitting your money with the hope of gaining more. That's all it is; hope. There is no guarantee. You are not physically or mentally working while your money is invested. You are going about your business doing whatever and your money is working all by its lonesome. So when your investment grows, or matures over time is not the result of your work. True you may have done some research into an investment however you personally did not work on behalf of your money. You willingly expected others to do that. Remember, all the hard work and effort that the employees of your invested company made on your behalf, as a result they received a paycheck and you received and increase in your investment.

I fully understand why so many are upset about the drop in their 401K as my own has taken a hit. However, in my case there was so little to begin with the 25% drop wasn't noticeable.

As For Christians, we should not concern ourselves with this as our hope is in the Lord and He will sustain us as is His will. This may not seem like much comfort but consider the persecution so many of our brothers and sisters face all over the planet and I think you will conclude, we got off easy.