Alright...I am in. I am doing this. And I am not going to get out.
I actually convinced myself to stay in after my last 2 posts.
I wrote down that I can handle my shares all dropping ALMOST to the point of extinction- as long as they do not go to $0. I can handle that because I have faith that in 30 years it will be built back up. I was just really afraid that the market would go to $0. But after thinking about the market going to $0...I don't think my money sitting in some bank account will do anything for me anyways. Money might be worthless and crime would be so bad I would just be a target anyways.
And I have it in my head that the more shares you have...the more you will earn in the good times. I already have so many shares and funds and whatnot that it's a shame to sell all that and start over again.
And I am not a greedy little b*ch. Pardon the language but I always told myself that this money alone is more money than I ever thought I would see in one spot, and I dont care if it earns crazy gains because the turtle wins the race and I am already starting out in a sweet sweet spot. So as long as I retire with the same amount of money I started with-I'm ok with that.
And the best way to ensure that I retire with the same amount I started with is to withdraw a majority of my retirement at least 5 years before I retire. As long as I do that, then I should be fine.
And I need to remember that the stock market is not a net worth. Up til recently I thought it was a net worth. Now I see the stock market as a type of business...you put capital in-let it do its thing for a while-monitor it for issues-and at the end of it all you will have a net worth when its over.
I just get so caught up in everyone else freaking out. The news announced today that we are in "a credit crisis tsunami". -Well that sounds alarming! It makes me think that bad times are coming and I better prepare.
I mean, I have felt a tightening in the economy. Ebay sales are way down..the monthly interest payment in my bank account is pretty low..I don't have as much 'extra cash' in my accounts as I am used to...and everyone everywhere is flipping out about the economy. So I 'see' it...but personally for me-it's not hitting me as badly as I think it should. I'm just a bit uncomfortable. I'm not at the level the news and experts seem to tell me I should be at.
So I panic and think the bad stuff is coming. I think that I am on the verge of major problems.
But I need to remind myself WHY I am not on the front lines of this financial crisis.
*I don't own a house
*I don't own a business
*I don't have student loan debt, car debt or any debt
*I am not retired or about to retire where I need the stock market money
*I have not made any large financial commitments that I need to uphold in these tightening times.
So maybe I will get through this relatively unscathed. I don't think I deserve to be mildly affected though when everyone around me is flipping out. It doesn't seem very fair.
ok, I'm staying in
October 23rd, 2008 at 04:53 pm
October 23rd, 2008 at 05:18 pm 1224782325
AH, but in your case, I don't want to make you worry. The world will still be here when you come back.
And actually, merch may be right. I don't disagree with him or anything, but more likely than not, he's just further ahead of the curve than I am. Personally, I would like to see a bit more traction with hedge funds and at least the retail sector before I declare bottom.... But then, I'm also speaking as a short-term trader, and so there's a slight difference in perspective.
I'm blabbing. Have a great time at your wedding. Seriously, things ain't so bad!
October 23rd, 2008 at 05:34 pm 1224783293
After your wedding, I strongly urge you to check out what funds are your IRA, and i urge you to check out the track record and fees of the funds and of your planner. Definitely check out the cost basis of the IRA (the price you inherited the IRA at) to see whether it is a true loss, and see whether or not whether you can convert to a Roth, and whether that would be a good thing for you to do.
There might be a little nugget of gold in there. Can't count on it, but maybe knowing that you are controlling what you can control will help you sleep better at night.
October 23rd, 2008 at 05:55 pm 1224784510
Nothing could be worse then that.
Just sharing what I see.
I agree with Baselle might be a good time to review your funds with your financial planner.
You might want to check out Morningstar's x-ray tool (stole this from SCFR).
http://portfolio.morningstar.com/NewPort/Free/InstantXRayDEntry.aspx?dt=0.7055475
October 23rd, 2008 at 05:57 pm 1224784653
October 23rd, 2008 at 06:12 pm 1224785560
So, for example, if you have a basic asset allocation in mind (say 50% stock, 50% bonds), X-Ray will double check for you to see if your entire portfolio is indeed 50/50.
Now, X-Ray isn't perfect. Especially with International funds, it can't identify everything, and will label them as unknown, uncategorized, or something like that.
However, it's quick, it's easy, and best of all, it's free. Very powerful for the price you're paying.
October 23rd, 2008 at 06:19 pm 1224785963
October 24th, 2008 at 04:25 pm 1224865537
I guess for me it comes down to worrying about things you can't control, versus ones that I can. I can rebalance and take a more conservative stance. Be a little more liquid for emergencies sake. Continue to budget, save, look for new income streams. I also continue to have faith in this economy and this country. I don't believe it will be a superpower, but a solid economy and a good standard of living is not too far of a stretch.
Morningstar has a lot of nifty tools. I have my investment and IRA portfolios and standings set up there so I can track them visually.