Klondike5 wrote:Investor wrote:
You lose nothing until you sell.
So when your 401(k) equity holdings drop from $1 million to $450,000, in your mind you have lost nothing?
Boy do they have you guys turned upside down.
You either don't have the stomach for investing or the right mindset or both.
You have to consider how that money got to $1 million. MOST investors don't put in a million dollars. They get to a million dollars over time through regular steady investing.
You keep mentioning a 50% loss last time, and technically that's correct, but what happened is that the market spiked up in 2007 until October, so if you take that big spike point and count from there, then yes, there was a greater than 50% loss. To look at such extremes to determine how you're doing is not accurate. I always look at calendar years, and for me in 2007 I was up a TON heading into October before the bottom fell out, leaving me with an about 8% gain for 2007. Then in 2008, I lost 39%. In 2009, I GAINED 34.7%, so when looking at those three years, only 2008 as a calendar year was bad, but if I go from October 2007 to beginning of March 2009 then it's an over 50% loss. Who cares? I didn't sell, bought a LOT of stocks at rock bottom prices, got dividends the whole time, and I'm way better off today than I was in October 2007...and THAT was the worst financial meltdown since the Great Depression. If THAT'S the doom and gloom, then man, I could not care less.