Culture
Recycles dryer sheets
- Joined
- Apr 15, 2007
- Messages
- 491
I was talking to a friend about a week ago. This friend is the classic high wage earner and big spender (and to his credit very generous with others, aa great guy). He mentioned to me that he had taken everything out of equities the day before because he has lost $300-$350k and could not afford to lose any more due to his financial situation, specifically mentioning payments on four cars and a boat, college for two kids, and mortgages on two homes (primary plus vacation).
My friend does not have a choice. If he or his wife gets laid off, which could happen, he will need to money, and therefore I think his decision was sound to avoid further losses.
I however, do have a choice. Over the past week the market has gone up about 10%, and I have enjoyed the rewards. Now I know this is probably a temporary rebound, and it WILL drop again at some point, but I can afford to stay in for the long haul. At some point the upward movement will be permanent. When this happens, I will reap the rewards, but my friend will not be a position to do so. Ironically, he needs the money more than I do, but I will get the gains, and he will not.
I cannot imagine living with the financial pressures that he has.
My friend does not have a choice. If he or his wife gets laid off, which could happen, he will need to money, and therefore I think his decision was sound to avoid further losses.
I however, do have a choice. Over the past week the market has gone up about 10%, and I have enjoyed the rewards. Now I know this is probably a temporary rebound, and it WILL drop again at some point, but I can afford to stay in for the long haul. At some point the upward movement will be permanent. When this happens, I will reap the rewards, but my friend will not be a position to do so. Ironically, he needs the money more than I do, but I will get the gains, and he will not.
I cannot imagine living with the financial pressures that he has.