An investment return does not make for a happy existance, but, having enough dollars to live the way you want to live is what really matters. See the difference? Sometimes we see people so focused on the past performance, past quarter returns, last year’s gains or losses etcetera, that they neglect to understand how those returns (or losses) affect their lives now and in the future. Let’s use an extreme example – 2008/2009. Remember how awful it was – big losses almost daily – the worst stock market since the great depression. So, let’s say you experienced a mild 30% loss during that time. Did that loss change the odds that you would have enough dollars to live on? That’s the important question though. In our experience, most of our clients still had enough dollars to see them through. Yes, they may have delayed buying a new car or skipped the vacation that year to just make sure they didn’t dig the hole deeper, in the short term. But, the negative return wasn’t a deal breaker for the dollars they need to live on.
So, next time the market tanks (and, by the way, it’s just a matter of time) don’t worry so much about the percentage loss in your account, calculate whether you will have enough dollars instead!
What to do after a parent dies – A complete guide with checklists
Table of Contents Death of a parent is difficult, here’s a summary of what to do and when The death of a parent can