Before this year, I was very focused on accumulating a lot of equity mutual funds, building up the IRAs and 401ks was a priority, generally putting a lot of money in the market while making the normal payments on the mortgage, student loans, etc. I have many years to go so losing money in the market isn't a problem today, but it still hurts. I had been prepared for a 20% drop in a year but not the 50% drop we saw at one point.
Going forward, I am looking at taking a more balanced view of putting additional money into the mortgage and adding TIPS to my investments, in addition to still buying some stocks (although a lesser percentage of my overall portfolio). I think that stocks are still likely to deliver a higher return over the long run, but I am less willing to stake my success or failure on something so volatile. Maybe better to take less risk with lower return and focus on things that are within my control, such as LBYM. Seems silly to work so hard on controlling spending when it can disappear in the market just as quickly. Has anyone else noticed a similar change in perspective?
Going forward, I am looking at taking a more balanced view of putting additional money into the mortgage and adding TIPS to my investments, in addition to still buying some stocks (although a lesser percentage of my overall portfolio). I think that stocks are still likely to deliver a higher return over the long run, but I am less willing to stake my success or failure on something so volatile. Maybe better to take less risk with lower return and focus on things that are within my control, such as LBYM. Seems silly to work so hard on controlling spending when it can disappear in the market just as quickly. Has anyone else noticed a similar change in perspective?