It was announced last week that Americans’ wealth reached a record high, thanks to a surge in the value of stocks and homes.
I’m sorry to be the bearer of bad news, but here’s a news flash: You haven’t made a penny in the stock market!
We’ve been here before…
Just like those glowing reports about how much Americans’ wealth had ballooned prior to the last financial crash, the new reports are pure fiction. Until you sell your assets and lock in your (hopefully) gains, you have nothing more than a bunch of eye-popping numbers on paper. Those numbers repeatedly sucker many of us into believing we have real wealth and financial security when we do not.
There’s a big difference between paper wealth and real wealth. Do you remember the go-go years of the dot-com bubble? I do. My husband Larry and I got into checking our retirement account almost every day because it was growing that fast. Yahoo! Some weeks we’d see such an enormous jump that we’d high-five each other shouting, “We’re rich! We’re rich!”