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September 24, 2008

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boomie

"But at this point, the only hope I have, is to hope that the market will indeed recover at some point."

You're placing your hope and faith in the corrupt Wall Street?

In 2001, my dad lost one million dollars in Wall Street. He was 85 years old. My sister had to take over his accounts and hired a manager from Fidelity to manage my dad's holdings. We thought he had gone insane.(to be so heavily invested in Wall Street BUT he wanted to make MORE money)

My dad still was holding 5 more million dollars in investments. When he died in 2004, it took us years to dump the junk he was holding and recoup any of the money. My dad didn't believe in setting up any trust fund or tax program. By the time the dust settled, the IRS got over 55% of dad's money in taxes. The accountants and lawyers got most of the rest.

Good luck.

Oh, and I'd stop drinking that wine your investment guy brings over. The wine clouds your decision making properties. Neat trick.

(I lost big money in 1987 and 2001 till I had had enough. This time, I haven't lost a dime. Live and learn.)

Retired Syd

Hmmmm, I can think of a lot worse outcomes than dying with 5 million dollars! Sounds like he was still doing ok.

Leslie

Syd, I am not selling anything either. I thank my financial advisor for making sure our portfolio was diversified enough to weather this storm. This too shall pass.

boomie

Syd,
That's exactly my point. My dad 'gambled' in the stock market BUT he had tons of millions to support him when things went bad. How many people can make that statement and suffer such losses? He did not take the $1 million loss lightly. He would talk about it ALL the time. He was obsessed with not having enough money till he died.
The govt. got over $2.2 million in taxes after he passed on. The lawyers, attorneys and executors got tens of thousands more. By the time it got down to the children, there was literally pennies left.

IT WAS A JOKE.

What was it all for?

Trust me, my dad did NOT enjoy his life. It was awful and pathetic. It becomes an obsession after a while. He was racked in fear. He was so terrified he would not have enough money in his old age. It was heart breaking.

Yet, he ignored his most valuable treasure: his own family. He had 2 daughters and a son who loved him and would have given anything to have taken care of him. Dad chose his money instead.(He also had a girlfriend for 19 years who loved him but he would not marry her because he did not want her to get any of his money)

Retired Syd

Boomie:

That's so sad about your dad. I think too many people get sucked into the same kind of thinking, that money (or stuff) is more important than the things that truly bring us happiness-our friends and family.

Simple Dollar had a relevant post just a few days ago on this very topic:

http://www.thesimpledollar.com/2008/09/19/the-psychological-and-emotional-attachment-to-what-we-have-and-what-we-want/

Syd

RetiredAt47

This is so interesting - I've just heard from several people that they are selling off most or all their stocks to wait it out. While it sounds awfully tempting at times, I am certain that I would miss the bottom of the market by a longshot. I know myself well enough to know how hard it would be to get back in. And then I would have not only lost a bunch on the way down, but effectively lost a bunch on the way back up too.

The only thing I'm doing now is re-evaluating my asset allocation to consider what percentages would have let me sleep better. Slowly, I may re-balance if the market ever stabilizes.

In the meantime, maybe we just need more wine?

Syd

ok. You hit this one on the head! I'm going to do a post on asset allocation tomorrow. If I can remember. I've had a lot of wine tonight.

Harvey

It's really terrifying, this aptly named "Armageddon" of the stock market. What I started doing was stashing money and selling items that I did not need, like my extra life insurance policy. I sold it in a life settlement.

Steve Austin

"But I also know with 100% certainty that I'm not smart enough to know what day that is, so I'm not even going to try."

Picking the exact bottom has nothing to do with smarts.

Lots of gloom here in the comments. Where are the stories about those who didn't sell in 1987 and didn't sell in 2000-2001? ;-\

Prada

The only thing I'm doing now is re-evaluating my asset allocation to consider what percentages would have let me sleep better. Slowly, I may re-balance if the market ever stabilizes.

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