Some people know Ben Stein as an actor, some as a financial writer, and some from his Comedy Central game show, "Win Ben Stein's Money." However you know him, Stein is assuredly one smart and very funny fellow.
A few days ago in the New York Times, Stein offers this parable about money, loss and life. Stein explains why he escaped the Madoff trap that ensnared some of the best and brightest. He also offers wisdom reminding us that we are not the sum of our 401K's (or, as I heard someone put it yesterday, our "101K's....)
We are more than our investments. We are more than the year-to-year or day-by-day changes in our net worth. We are what we do for charity. We are how we treat our family and friends. We are how we treat our dogs and cats. We are what we do for our community and our nation. If you had $100 million or $100,000 a year ago and now you have a lot less, you are still the same person. You are not a balance sheet, at least not one denominated in money, as was explained to me recently.
Losing and making money are not moral issues so long as you are being honest. You may have a lot less money as this year ends than you did two years ago. But you are just as good or bad a person as you were then. It is a myth that money determines who you are, and if you have gotten over that myth by now, then 2008 will have been a very good year.
A friend of mine today railed at the SEC; how they could have and should have done more to protect people. Perhaps so; I am not knowledgeable enough myself to make such judgments. I do, however, have familiarity with human frailties and a desire to believe in the Tooth Fairy. Alas, I have succumbed to her charms more than once myself. Neither the SEC nor anyone else can offer a shield strong enough to save all of us from greed, sloth, wilful ignorance and a host of other human sins.
I don't know if 2008 saw much of Ben Stein's money vanish. I do know that too much of mine went on holiday - along with trillions of others' wealth, too. Yet, when I face the pain of mutual funds with gaping holes and stock quotes that seem to have shrunk in the wash, I do my best to let Stein's wisdom cheer me. I remain rich in family, friends and pets, vocation and avocations. I tell myself to try to do a bit better next time around - despite appreciating that perfection is a goal I'll never reach.
And next time you are promised returns without fail, run. All that will happen is those who promise you riches will ultimately Win Your Money.