Who doesn’t have trouble with money? And you know it’s tough to stop your money worries dead in their tracks. It’s like kids. I’m sure you’ve had the experience of seeing a young child confront a reality they didn’t particularly care for.
(“Time for homework.” “Time to go to bed.” “No more candy.”)
These parental directives can be the very best thing for the child – yet some kids fight good advice tooth and nail. They want what they want, when they want it. Does this sound familiar? Does this remind you of anyone? Yourself, maybe? Think about it.
We can get sick when we see what’s going on with our investment strategies. We want our investments to grow – or at least stop hemorrhaging. We want things to get better and we want things to get better now.
Unfortunately, that’s not the ways things work all the time. What is happening in the market is beyond my control. What is happening in the market is beyond your control.
You can certainly take steps to make the best of a bad situation. But in the short term, the pain might continue. You have the choice of suffering through this or not. That choice is completely yours.
A person who takes an adult approach knows that our economy has problems, but realizes (if all of modern history is any guide) the economy will be corrected in time. Of course, this person is concerned… but they are not paralyzed by worry – even if they are currently retired.
I know it’s not fun when you see your account values drop. I know that it’s very difficult for you at times. In an effort to stop the pain, some people sell and sink everything they have into a bank account.
This may be smart for some people… but I think those who do this are taking even greater investment risks than those who hold on.
For our purposes, I just want to make sure that whatever decisions you come to, you approach the issue in an adult manner, and not from a purely emotional place.
Assess the situation. Consider the pros and cons of each alternative. Then make a decision that will be suitable for your long-term goals. Don’t do something just because it feels good now.
Finances are serious business. If you want financial serenity, approach your investment decisions from an adult place. It’s OK to be afraid right now. It’s just not OK to act out of that fear. That’s how you can end trouble with money.