Don't Let the Facebook Debacle Damage Your Retirement Plan

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Facebook ProblemsFew things in the investing world have gotten more attention than the much-anticipated Facebook (FB) IPO this month.

Yet unfortunately, the lesson that millions of hopeful investors learned the hard way from the misadventure was that when it comes to promises of getting rich quick, you can't rely on the stock market any more than you can trust that prince in Nigeria who wants to send you $10 million to help restore his family to its former glory.

Facebook's was a highly unusual IPO in that many ordinary investors were able to get their hands on the initial offering of shares. When those shares didn't produce the pop that many other IPOs have experienced on their first days of trading, many concluded that the Facebook IPO was just another Wall Street setup designed to take money away from the little guy.

But the true tragedy of Facebook relates to the crazy expectations that many people had about the IPO in the first place.

Some investors put big chunks of their life savings on that single stock, hoping that they'd found the one way possible to get ahead after years of suffering through plunging stock markets, high unemployment, and eroding safety nets.

It's far too early to conclude that Facebook will never be a good investment. Yet for those who expected a quick doubling of their money, the current loss of more than a quarter of their investment in Facebook shares comes as a major shock.
Inevitably, many will simply take their losses rather than waiting for a rebound that may take years to come.

The Facebook debacle serves as a reminder that as appealing as it is to make a quick score on a hot stock like Facebook, long-term financial goals take a long time to achieve.

Successful savers rarely hit it big with a single stock. Instead, they put small amounts aside month after month, year after year, and let their modest gains add up over time. If you follow that strategy, you'll suffer setbacks along the way, but in the long run, you'll have a much better chance of getting the retirement security you want.

For some more tips on smart retirement strategies, read on:

Motley Fool contributor Dan Caplinger stayed far, far away from Facebook. You can follow him on Twitter here. The Motley Fool owns shares of Facebook.



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Gumby

$2 aluminium wont hurt jobs because ALUMINIUM IS WORTH $2 ... OR YOU SHOULD HAVE $1.50 GASOLINE in comparision.. you dont complain about gasoline prices but you howl about hgiher alumijium prices!!

June 01 2012 at 11:43 AM Report abuse rate up rate down Reply
Gumby

ALCOA cannot decide what price becasue traders has the final say.. who was behind traders?? Boeing, Warren Buffets, Coca Cola, General Electric, window makers, etc... They all ganged upon ALCOA !! this is wrong! simple as that.. Bring aluminium up to $2 now!

June 01 2012 at 11:42 AM Report abuse rate up rate down Reply
Gumby

it is like paying $1.23 for gasoline today , unheard of ... that is what is happening to aluminium.. ALCOA cannot survive much longer on 97 cents a pound.. The world dont care about to omuch aluminium .. Broke Europe still help them making too much aluminium at a loss.. Same for China .. Everyone want to throw out new aluminium for cheap no profits... Why is that??/ Well, you know passenger jets are built with aluminium so you will pay more for tickets?? No not really.. because $2 aluminium will add only a couple millon dollars to a $150 millon passenger jet.. Dont give me the bull.. Boeing want to take profits from ALCOA . Shareholders favor Boeing over ALCOA. You see? jsut for a couple millon dollars every jet! that belongs to ALCOA.. Boeing start thinking about using compostie or carbon fiber which is very toxic and will reallly cost workers in sickness and ill health... just to save a few bucks!! We thought that copper was dead but we were wrong.. Same for aluminiujm We bad mouthed aluminium only to keep prices down instead of glorifying aluminium for all the verstalie uses alumiium provides.. We lied , lied , lied about ALCOA!!

June 01 2012 at 11:41 AM Report abuse rate up rate down Reply
Gumby

Buy ALCOA or taxpayers will have to bail ALCOA out for billons !! dont tell me you dont want taxpayers to do that... simply because you dont care for ALCOA as long as you can get super cheap aluminium that really cost more to produce.. Aluminium prices should be $2 not 97 cents today..

June 01 2012 at 11:36 AM Report abuse rate up rate down Reply
bolten2

Fools and their money are soon parted.

June 01 2012 at 11:14 AM Report abuse rate up rate down Reply