Thursday, October 9, 2008

Going, Going, Gone

I finally did it. I sold my mutual fund yesterday. And I'm feeling pretty sick today about the $10,000 I just lost. Not $10,000 that I had earned on the fund over the course of the 7 months I owned it. No, this was a loss of 20% of my original investment.

I know, I know - market investments are supposed to be for the long haul, it's going to be difficult to make it back now, yadda yadda yadda. I just couldn't do it. I couldn't watch the value of my house slide and the value of my 401K and this fund all at once. It was killing me. So I went with those "experts" who were preaching more years of market doom and advising folks to take any money you may need in the next five years out of stocks.

I'm pissed. Pissed that lending institutions got so greedy and gambled on risky loans and investments and sent my money down the toilet. Pissed that these are the same folks getting millions of dollars in severance packages for doing a bad job. Pissed that this market isn't the result of some cause other than people screwing up big time. Really pissed.

20 comments:

Blondie said...

She's not kidding.

Paula Brooks said...

Yesterday my bank, (which is having some high profile troubles) told us our line of credit would not be extended to our companies...

Now our vacation home rental business is good... we owned most of the houses outright and our rental season is just about over anyway, but our construction company is a problem, today is payroll day and it maybe our last if we don't find a new lender soon.

I am not look forward to telling 350 people they have no job anymore.

Tina-cious.com said...

yeah my 401k is for sh!t...

...sigh...

Writes Like A Girl said...

I have worked in real estate for years and I think the banks full of it. I have talked to the people in the loss mitigation department of several banks trying to help people work out plans so that they don't loose their homes. If the bank was really interested in protecting their own investment they would make deals but very often they will not. It doesn't make sense unless there is something else going on. I think banks are playing both sides of the coin. Telling consumers and the government how bad it is and it's working. For them. I think we should be making more noise about this. I'm glad you are writing about it.

Cristina said...

I'm with u CJ, Lost 89% of one of my holdings almost over the course of hmmmm let's see...since MAY!!! Good thing I am only (ahem ahhhhem) 27 and have many many years before I retire. I have decided to not look anymore, this is one of those historic economic 30 year cycles - what can you do.

lynt said...

made the mistake of checking one balance. ruined my entire week. pissed and then some. wtf is REALLY going on here? i used to joke that i'd never be able to retire. heh.

MLC said...

It's really tough. I busted my tail and had a great month in September (I'm self employed) but still I am a hiccup away from bankrupt.

A very scary economy and situation...Michigan and Lansing are about as bad as it gets economically.

janet

Sinnerviewer said...

I can't even look at my ROTH. It's too depressing to know that my *only* asset is slipping away by the hour.

McCheesy said...

CJ - I am hanging in for the long haul. If it's the wrong decision, could McMeaty and I pitch a tent in your backyard -probably six months from now but I need to plan ahead. Scary times just in time for Halloween!

McMeaty said...

I'm just glad I'm not retiring for a few years...Hopefully, I'll retire on the upswing. I believe it's all one big manipulation. All the biggies that still have tons of cash are going to make a fortune when they get back in. They got out last year because they knew this was coming.

I'll try to be patient..

Velvet Ginger said...

It's really scarey right now, many folks are taking thier money out of those investments and putting them in CD's (FDIC insured) at least it's a safe thing even at a loss. Sorry for your troubles hon!

Blondie said...

McCheesy - I think we will all be living out of cardboard boxes in the woods behind our houses before long.

(CJ didn't even mention the huge drop in what our house is now assessed at! Oops! Maybe I shouldn't have brought that up!)

Ms. Creek said...

I understand...I rolled over my teacher's retirement from a different state. I'm going to wait for 20 years to get it...don't have a choice now! Sorry for your losses. Let's just hope those rescue efforts in the bail out will trickle down and help us, eventually.

CJ said...

Thanks all for your comments. I know this is tough on everyone. I'm hoping we can all recover here and that the loss is not permanent. It's got to get better right?

CJ said...

Hey Writes Like A Girl - Thank you for stopping by. I agree with you - I think there is a lot going on here that we don't even know about.

CJ said...

Sorry you are having to go through that Paula. That is really tough. I hope things turn around soon.

SassyFemme said...

We don't even want to open our 401K reports. We're just going to sit on our stock, we've had it for forever, and sooner or later it will go back up. I think at this point, as long as we both have jobs, can pay our monthly bills, and put even a little into savings, we're happy. We just breathe and say, "This too shall pass."

CHEWY said...

For retirement I have ROTH IRAs, FDIC insured, as Vel mentioned. Stocks may pay out higher interest rates but are always risky.

Grumpy Granny said...

I cashed out my 2 IRAs back in April and paid off ALL my credit card bills. I got told I was crazy at the time, but I saw this coming. Man. For ONCE in my life, I was ahead of the curve. I may not have any cash in the bank right now, but not having the debt over my head is definitely the best thing I did for myself in a long time. Good luck to you and to all of us!!

GG

CJ said...

Hey Sassy! I left my rollover IRA's in place figuring things will turn around at some point before I retire. Yes, this too shall pass.

Not so sure I'm cut out for investing in stocks Chewy. Watching the market is making me crazy.

Hey GG! Congrats on being debt free. Not an easy thing to do these days. Wish I had acted a little sooner on cashing out that fund.