Financial rant

I can tell when my general malaise is bubbling over. I tend to get inspired to write again. At least that's certainly the case this time. A bit of back story here: I complained about receiving my 401K statement the other day and that I'd lost 20% of it's value in 1 quarter. Most friends were on the same page feeling equally taken in the shorts with losses. A couple friends posted to stay the course and it'll get better and one friend in particular took some time to write out thoughtful responses on why I was still doing OK and that it shouldn't be considered a real loss at this time. I took issue with that and thought I'd do a better job of writing up a rant rather than crapping up a post.

The last comment that got me digging out the soap box was, "A real loss only happens if liquidated/sold. Your accumulated shares are showing less value at the time your statement was printed. There is a distinct difference. I guess you now own more shares/units than before. In my mind this is a gain in 'value'."

To my friend- don't take this personally, its just that this comment really bugs me. I suppose as long as you're still playing the game that could be considered true. It just means I haven't lost everything yet. I'll try to remember that next time I sit down at the blackjack table and the dealer is holding half my money. I mean, heck, I'm still playing the game, so as long as I don't get up and take my lumps, its still possible for me to get my money back and possibly even make some.

Here's my stance. This type of rose colored glasses are a big issue in my book when it comes to talking about personal finance. Its all great until its time to pay the piper. If I've lost money, tell me, I'm a big boy and can handle the truth. If I didn't want the risk, I'd bury my money in the back yard. Don't sell me on the fact that I'm missing the equivalent to a DI2 equipped Shiv from my account and that its all good because I can still buy 50 strider bikes right now. The stuff I've all ready purchased didn't suddenly cost me any less or multiply behind my back. If I stopped playing the game 3 months ago, I had that money. If I stopped today, I don't. It really doesn't matter if you're still playing, it matters where you're at all the time. A gain is a gain and a loss is a loss. Delaying talking about them until you've quit the game is only a delay.

Losing money sucks, no doubt about it, but people need to hear when they're ahead or behind flat out without smoke and mirrors to decide how much risk they want to continue to take. Obviously the long term trends show we'll eventually gain back our money and continue to grow our wealth or we'd all be suckers to keep going at it. I wholly understand that fact and will keep plugging away at trying to make wealth for myself in this manner as its an acceptable risk/reward scenario for me. Just don't tell me that ups and downs along the way don't suck or alternately aren't awesome. I don't need the smoke and mirrors to make it better, I need simple to understand terms. Honestly, I think most Americans could use the same type of thing.

Shit, I can't think of a good wrap up for this rant without dredging up 10 other things that are pissing me off so there you have it in a nutshell.

Rollercoaster

and no I'm not talking about our much loved and recently fought over trail at the Science Center. I'm just talking about day to day life and everything that goes into it. It seems everything these days is in a whirlwind- work, family, finances, weather, etc, etc. Let's break it down shall we?

Work: Just when you think you're on top, a wave of stuff comes smashing back over you. Take for instance this morning. I had one major thing on my desk to accomplish by days end and any various number of small side items. Along about 8 o'clock I get a call that one of my sub contractors doesn't seem to be fulfilling his obligations to meet deadlines on the jobsite and they want a meeting at 1 this afternoon to make sure I keep his butt in line. OK, so that throws a wrench into the day and now I'm scrambling to make sure all my ducks are in a row too. I decide that we should take over part of his work load and now I've got several large scale items on my desk, plus a phone call to fill up my day and then some.

Family: Actually, family has been pretty decent. Miranda and Corley were out of town a couple days last week and I was able to get the house cleaned. I also had a good steak dinner with Squirrel and his family on Friday night. It was nice to kick back and chill. Saturday was pretty busy as we hit the Science Center in the AM for some Halloween fun and then Night Eyes Saturday afternoon along with going out to eat that night. Sunday was pretty lazy though as Corley and I hung out in the house and watched the wind attempt to remove the shingles from everyone's houses.

Finances: I've been eyeing these pretty close as of late with all the ups and downs in the market plus the general piss poor shape of our economy. Things look pretty decent for us, but you can never make too sure. I even earmarked some money to possibly purchase a new mountain bike. Now, a week later, I've seen my quarterly IRA statement (down over 20% for the year), had our home equity line of credit shut down because they estimate my house is worth MUCH less (over $20K) than they told me 1 year ago, and I'm still wondering how our taxes, year end bonus, and sales for our business are going to shake out for the rest of the year. I hate credit card debt and luckily, we really don't carry any balances unless it benefits us with something like 0% financing and the like. This means we're just fine financially, but I like having the cushion of the line of credit for emergencies and/or to use as a slush fund in case something too good to resist should pop up (read new mountain bike). Funny thing is, I think this very thing happened to a number of other people who are probably a bit less responsible when it comes to spending and now they're up shit creek having no more access to easy cash. This leads to the current housing storm we're all hearing about and in turn drops my property value...

Weather: Wow, I can't believe the wild ass weather for fall. We go from torrential rains, to cold, to warm, to windstorms, to cold again in a week. Pretty wild. At least the winds helped speed the drying process for the center trails and word is they're about perfect for now. I'm looking forward to riding since it's been over a week now. I'm itching to get out and I have to practice up a bit for this weekend's Dirty Du. I've teamed up with Heather from PRC to ride the relay portion while she runs. I can't wait!