On the flip side, this morning I found out that my brokerage closed its doors Monday at 5:00pm. The first thing that springs to mind is the Bear Sterns fiasco and the investors that have lost millions. Luckily (or unfortunately,) my savings is no where near that. I did a bit of research and have been assured that my money is in safekeeping with the brokerage's backer. I can transfer it to a new brokerage at any time.
Tomorrow is inevitable and there is no excuse for poor planning today. The things I've learned from both of these events are:
- Make sure retirement accounts are protected with reputable companies.
- Don't be afraid to ask questions when the market is getting weird.
- Diversify! If all the eggs are in one basket there is a ton more risk. Ask the investors in Enron, PanAm, and Bear Sterns.
- Start early, but its never too late to start.
- You can always stretch a meal help someone in need.
- Resourcefulness is the basis of frugality.