You are not alone, but not everyone is feeling the pinch. I guess I fall into the other category right now.
I'm actually looking forward to a huuuuge pay increase starting end of the month. I may increase my hobbying from once to twice a month, or just go for longer hours, or some combo like three times every two months with longer hours. I might also finally do one of those sex tour vacations next winter when it turns cold around these parts. I planned it last winter but then never followed it through.
OTOH, I don't review my portfolio to see how poorly its been doing. I put it in, and let it sit forever, and pretty much just randomly contribute aside from my automatic payroll deductions. The only time I ever withdrew was for down payment on my house like 10 years ago. So I've probably taken a hit there right along with you, but I don't use that as my play money.

based on what the markets do in one day. If the risk downside is that huge for you, maybe you should re-evalutate your risk tolerance.

but for every loser in the market there is a winner on the opposite side.

Today was a huge boon to me, I'm sorry that it came partly at your expense, but I've had days that I have lost 100 times your loss of today. Life isn't fair, don't risk more than you can afford to lose, or if you do don't expect anyone to feel too badly for you. Shit happens.

Again, I don't mean to sound unsympathetic, but it is the risk you take.

I am sorry for your misfortune. I must count my blessings as I have not been affected by the recession so far. I am in a healthcare related field, not an extremely lucrative one and busier than ever. It's not clear to me if you are talking about employment income or the market. I do not worry about day to day market fluctuations as I am quite a few years from retirement.
There are some advantages to being single (divorced twice, with no children. It gives me freedom to do what I wish. I love my job so I plan to work until I am 70, at least part time, if I am fortunate enough to stay in good health and then either join the Peace Corp for two years in a predominately Buddhist country such as Thailand or retire near a large meditation center here in the US or retire possibly in central rural France where the cost of living is less. Now if I win the powerball lottery I will retire in Paris or the south of France

Anyway I hope things turn around for you and I realize everything is impermanent so things could easily turn adversely for me as I am not independently wealthy so all I mention are really just dreams that realistically can come true if things work out the way I think they will. At 55 (almost) I have decided to live in the moment as best I can and hope for the best.

Re: Panic vs. reality

Thanks guys.  Panic was the wrong word.  The actual percentage of my total wealth lost today was miniscule but clearly cuts into play funds.
From your responses, those of you who are still working, income and expenses are substantially different than living off of retirement.  Playtime funds for the latter come from reduction of capital or earnings therefrom.  Simply put, pussy is not cheap regardless of price. And at age 69, wont last much longer either. Hence the adoration of my regulars, and recognition of the tight market conditions for them.  Bless you darlin's.

You have to have a long term perspective. In the past year we have had huge market swings. The net effect is that my portfolio stays within in certain range. Make sure that you diversify. Have short term money it short term instruments. Have an emergency fund, etc. When we have these sell offs buy low and sell high when we have rally.

-- Modified on 6/7/2008 5:30:05 AM