LP said "Drum roll please....... Ladies and gentlemen, I need 140k by end of the year. Hmm, based on what I have now and my savings target by end of the year, most likely I will be able to hit 85% of the target without any help from the market. THAT is quite reassuring. This means that I can tap maybe 10k of my reserves to average down some holdings, but when the market rebounds, I'll have to take an equivalent amount or more of my capital out. In other words, USE SPARINGLY."
Do you need to liquidate some of your investment when you need cash to meet near-term expenses?
I believe it is not uncommon for some retail investors to think that they can easily liquidate some of their investment at profit when they need cash to meet near-term expenses.
Reality Check 3
Don't ever come to the stock market and expecting the market to help you to meet your near-term expenses when the needs arise.
When you are already in the stock market, your only defense against any panic selling is your holding power during the Bear Raid and the small consolations for your misery come from your stock dividends.
So it is wise to invest only with money that is not needed for next five years and then only you are emotionally steady enough to face the future bulls and bears.
"If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks." - John (Jack) Bogle
Take note of wise men's advice.
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