The current market turmoil presents a good opportunity to recall the importance of having a financial strategy and sticking to it.
I remember the 2008 crisis well. We had a small amount of money and lost $50k. It was surreal to just sit there and watch large amounts of money vanish. I remember wondering at the time where that money went, and if there was an equivalent gainer somewhere in the financial universe.
Today, at the face of it, the situation is similar. The graph below shows our investment performance.
In 6 months, our investments have declined by $290k. I am sure that is enough for a slightly used Rolls Royce if we had a need for such a thing.
Most importantly, I am confident in the investment strategy behind this portfolio so paper losses will come and go and we plan to ride them out. This portfolio still produces the income that we would want from it. I am confident that the value of the portfolio will follow the market and recover along with it. We will follow along and report the progress accordingly.
This is what sticking to your guns with your financial strategy looks like. Follow along to see how we fare in the monthly updates.