Realize the Value of Hard Assets
The plunge in the value of the stock market takes its toll on investment and retirement accounts; and we call these paper or unrealized losses. I guess that one does not realize that they lost something if they never had it to begin with. Whereas, my machinery and tools may not be worth as much as they were before, but, they are still here and real. My machines still make money for me, though again, not as much as before. Likewise my house is worth a fraction of what it was worth a year ago. Yet, I will not realize the loss until I sell it. In the meantime it is a nice place to raise a family.
This line of thinking is probably way to utilitarian for the Wall Street types. But if I can live in, or rent my house, it will always have value to me. Maybe instead of worring about my unrealized paper losses, I should work on completing some of the remodeling projects around the house.
October 14th, 2008 at 1:57 pm
That was a great post. I will have to bookmark this site so I can read more later.