No. of Recommendations: 11
When we bought our house in May 2000 - we paid a point to lower our interest rate - only to refinance 7 months later at 1.5% lower. Another $1600 of money paid for close to nothing.

In this last year, my Roth IRA has lost more than $1500 and my 401k has lost so much more in value that I would rather not talk about it.

The conclusion that I came to is that money "mistakes" are inevitable and if I'm going to have one - this is the type of "mistake" I want to make.

Those aren't mistakes. Who knew that interest rates would drop? In a way, you paid $1600 for "insurance." Your rate would never be higher than X%. Well, rates dropped sooner rather than later.

All of us who invest in stocks and stock funds had some dips over the last year...either little dips or BIG ones. So, that's the volatility involved in having an investment that over time outperforms investments that never go down (but often lose purchasing power to inflation). A mistake would have been putting the money you need in the next few years into stocks and stock funds.

I think most people understood that you gave the money willingly and not out of being "guilted into it." Also, you wrote that you considered it a gift, and if you ever saw the money again you'd be tickled. Finally, it was a true need, and not just a case of "Can't feed the baby, 'cuz I bought cigarettes with my last dollar." However, there have been many threads where there was the opposite case, and I think that some people just wanted to be sure to show the other point of view.

Emails and newsgroup postings seem harsher than people meant. When I see those responses to my posts, I try to imagine--is there any way that this COULD have been meant in a positive spirit...sort of, "Oh by the way, this happened to me. It may not apply to you, but just in case, here's something to think about."
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