Wealth vs. Income

The DOW is down hard, but what does that mean to our lives? The answer to that question depends on how close you are to retirement.

If you plan on working for the next decade or two, then the market is not your prime focus. Instead you watch income (revenue) and expenses (and inflation of these expenses!). You work and spend and live, generally unaffected by the markets. Well, generally unaffected unless your job is tied to the markets.

But if you are retired, or close to retirement, then it is a whole different story. Then you live on wealth. But there is very little excuse for those that left themselves exposed to a market slaughter with money that was vital to there livelihood. You can't gamble the rent money! And if you choose to gamble the rent money and lose it, then you should expect yourself to go back to work.

It may not be the answer people want to hear, but markets are not safe. Markets can move violently. And you can lose it all. Just don't ask me to cover your gambling debts if it goes badly, I'm not OK with that. Not as a taxpayer, not as a neighbor, not at all.