Investing and You
Investing any money you may have can be both exciting and nerve racking. Ones money and their emotions often go hand in hand. If ones investments are doing well one tends not to be too concerned with their finances but if they are losing them substantial amounts of money it usually adds extra stress to their life. There are several things to consider when you are investing. You need to ask yourself what your financial comfort level is with both the risks and rewards. You also have to learn how to deal with the choices you have made.
Investing is an individual issue. Someone may have no problem investing large amounts in speculative, high risk stocks in the hopes to earn high profits. Others would rather play it much safer and go with less risky investments. Which is the better way to go? This is totally an individual choice and it varies as to the “best” way to invest. One must be able to feel safe and comfortable with their choice. If you are invested in a higher risk portfolio and are at ease with this, then this may be the better way to go for yourself. If however you are having difficulty sleeping or are constantly worried looking at the market, being in this situation is probably not for you. When it comes down to it, you should not have your mind pre-occupied and concerned with what you have done. If so, I don’t believe you are making the right choice. I believe being at peace is more important than hoping you earn more. However there is a difficult gray area of peace and rewards.
Many people will be comfortable with investing while the market is doing fairly well, there is the perceived notion that this will continue indefinitely and one feels comfortable, but the truth lies if the market starts falling. I personally had a slightly higher risk portfolio for years and thought it to be the best way to go until a big market crash started a panic in me. I had to re-consider my investments and while this may not be the advice from an investment banker, I chose to go with a more balanced portfolio simply for the peace of mind I then had. Sure I lost out on some gains once the market started to rebound but for me, I found my comfort zone and am sticking with it.
What is one to do if they find themselves in a semi- panic situation regarding their investments? This is where I find the rubber hits the road and one really finds out their comfort level. This may be a time you want to reconsider your investment strategy and talk it over with a financial advisor. But ultimately you will want to be sure that you stay relaxed during the process. Do not be quick to make rash decisions and for every article you may read about how the markets will crash to the ground, be sure to also look at the other side of the fence and see how this may be an excellent opportunity for further investment. Also try to take you mind off of the market and have some fun in other areas of your life. Having fun in other ways can help you stay at ease. Get some exercise, go for a hike, play some casino games online perhaps, go out fishing, take in a live performance, call up a friend and do something social, the list goes on and on but do something to help put your thoughts into perspective about things.