Monday, October 20, 2008

"I'm not even looking..."

What is the deal with people who don't want to look at their 401K's and IRA's because they don't want to get depressed? Seriously? What is the deal?

Ok, I understand that you are not going to sell. Neither am I. I strongly believe that it would be collosally stupid to sell off and get completely into cash because of the way that the stock market is behaving these days. But to not know how badly you've been hit?

I got hit pretty nastily. I lost about $20,000 on a $100,000 retirement portfolio so far. And though I'm not selling and getting into cash, I am looking to rebalance my portfolio a bit. Get into some funds with less risk (I'm still investigating) and definitely buying some gold. I'm not panicked and I'm not depressed. I'm upset at what happened, but I definitely feel more in control knowing how bad the damage is. Look, I have 25 years until I retire. A lot could happen in 25 years and I'm confident that I will Gee"doubleyou regain that $20K and then some over that period of time. But things are not going to be turn around so quickly, regardless of the "bailout" and regardless of how much we want them too. So why wouldn't I adjust my portfolio for the short term?

So for those of you who are saying "I'm not even looking. I don't want to know. It'll come back and there is no point to getting depressed," for Pete's sake, LOOK! Now's the time when you need to look. Do a little research, and rebalance some of your money so you can stop some of the bleeding. If you're not sure how to rebalance, do what I'm doing and turn to people who do know, or at least have sound ideas. No good comes of not looking. Geez, people are such babies.

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