We All Just Learned an Expensive Lesson

Where did all the money go? That's the plaintive cry as investors check the balances in their 401(k) plans or IRAs.

Strangely, they never asked how the money landed in their account as stocks moved higher. That was taken for granted. Well, don't look around now to find out who has "your" money. It disappeared as magically as it arrived. It's gone to "money heaven"!

We've turned ordinary Americans into portfolio managers of their own retirement plans, many of whom don't have the knowledge, perspective or self-discipline to make wise decisions. It shouldn't come as a surprise that, as prospects for the economy dim, fewer people want to own the businesses that those stocks represent. When investors rush to sell, prices go down -- and the money represented by those stock prices simply disappears. ...