Friday, August 05, 2005

What if you lost it all?

Why do I read financial web sites? We have no money to invest yet I know some of the best funds to purchase. I am scared to play the stock market yet each time I track a potential winner, it goes through the roof. Oh well.

Reading those sites did conjure up an interesting, thought provoking question. People who play the lottery always dream about all the crap they'll do if they're the big winner (or even the second big winner). Ask anyone, "What are 5 things you would do if you won $500,000?" and that person would have no problem in giving you at least two ideas in less than six seconds. Everyone has dreams.

Here's the question: What would you do if you owed $500,000? You didn't win anything - you lost. Don't consider it a gambling question and slough it off by saying, "Well, I play the lottery but I don't GAMBLE gamble". No, you can't get out of the scenerio that easily. You are too quick in spending imaginary winnings. How would you handle an imaginary loss?

4 comments:

Bigandmean said...

Bankruptcy!!!

Most financially successful people throughout history - including Rockefellers and Rothchilds, have failed at least once.

The key to financial success through investing is not to be afraid of failure. If you lose it all, so what?

BTW, start out small as soon as you can and invest in a good indexed mutual fund like those sold by Fidelity Investments - then forget about. Don't check it all the time to see how it's doing or you'll end up selling when it's down - definitely not what you want to do.

By the way again, tell Geo I said Happy Birthday! Geo the Leo huh? One last btw - his birthday is the same day as my dad's.

Maidink said...

B&M - Yeah, well that's the accurate answer of what to do in such a case.

I used to have money in Vanguard and Oppenheimer. I now live in those former investments. I'll get back in it again, probably in a few years.

You're right about not watching the market all the time. Following the market is a lot like watching one's weight. The trick is not to monitor everyday.

Geo says thank you. I guess 08/05 is a good day for all.

tescosuicide said...

I'm getting there... won't be imaginary soon!

Maidink said...

I've been there, Tesco, and it does suck.

You can get through any problem - I believe that.