Home > ok, I'm staying in

ok, I'm staying in

October 23rd, 2008 at 04:53 pm

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 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.

7 Responses to “ok, I'm staying in”

  1. Broken Arrow Says:

    The news is calling a "credit tsunami" right now? Despite the fact that LIBOR has been slowly but surely thawing? They're a little late to the party then. No, actually, things have been easing up, but there are other issues still at play....

    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!

  2. baselle Says:

    I can relate to the freaking out, but steady as she goes is additionally nerve-racking. This the time to control what you can control. It sounds like you've kept the $ in the IRA that you inherited, and you kept the financial planner, also.

    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.

  3. merch Says:

    The world has come to an end .. The Red Sox didn't make the world series!!!

    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).

  4. gamecock43 Says:

    What is this xray thing!? What is it telling me! It looks like fun! I am going to get out my statement and look for symbols to enter!

  5. Broken Arrow Says:

    X-Ray? You just have to see it. It's beautiful. It looks into your funds and tells you what percentage you have, broken down into several categories.

    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.

  6. gamecock43 Says:

    Yes I am using it! It is a great tool! I am not positive I am using it correctly but its giving me great graphs...I will ask BB's dad to show me how to use it at the wedding. Thanks!

  7. MileHighGirl Says:

    This is why I'm insulating myself from any financial commentary. They are good for panic and fear mongering, and since they can't tell me what will happen tomorrow, let alone a year from now, they are worthless.

    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.

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