This post originally ran on my original blog, Towards Your Better Life, in December of 2105. I realized that I hadn’t moved it to Money is not Taboo, so I figured today was a good day to do so. I’ve added some new comments to this piece, which have been done in Bold type. Let me know what you think!
Shin
My former stepfather used to check the stock market on TV EVERY DAY, and more times than not, he was “Boo Hooing” on how a specific stock was performing. “Well, I lost $40,000 dollars yesterday, on Such n Such.” That was several years ago, as Mom passed in 2006.
We haven’t seen my former stepfather much, since then. He remarried a few months later, and so we never really kept in touch. In the few years that he was with my mom, I don’t recall him ever being happy with the market. Maybe he only shared when it was down. One thing apparent, though, he was heavy in a small number of stocks.
My wife and I had been investing for years, and even helped my Mom get into it after my Dad died. At that time, we all invested in Mutual Funds. Mom and I didn’t watch the market, and Selena left the money matters to me. We just let our funds do their “Thang.”
I realized, shortly after Mom remarried, that she had begun checking the stocks daily, as her new husband did. I didn’t, I just let the money “Simmer,” adding a bit more into the “Pot” each month. Mom and Step Dad seemed really hung up on the Market, and it wasn’t comfortable at times. Luckily I didn’t pick up the habit.
A few months back (Early 2015), when the market took its big downfall, I heard about it on the radio, and on the internet. When talking with my Financial Advisor, shortly after that time, he asked what we thought about the market. My response, “What Market?” He got a kick out of it.
I hadn’t bothered to check our portfolio, as I didn’t need to. We’ve known the market history, and we were content to let our “Pot” simmer. I have checked the portfolio, a few times, since that downturn, and am pleased to see that it’s climbing back up. Our current portfolio has never gotten down near the amount we started it with, in 2013 and it’s almost back up to the amount it was when the market plunged. That’s even with us taking some out, each month.
(I have checked our Fidelity accounts today, and as of this afternoon, our joint account is up 26.52% above the original amount that we moved to Fidelity in March of 2013. My wife’s 401k is up 5.54% since we moved it in April of 2013.) July 10, 2017
For the most part, I ignore our money. I do keep up with the bank accounts though, making sure we don’t overspend, which is better than keeping up the “Folks Next Door.”
The Market is going to go up and down. History proves that, but at the same time, history proves that it continues to go up, even after downturns. If you look into the data, you’ll discover that it’s continued to grow over the years. Heck, earlier this year (2017) the Market hit 20K for the first time in history. Special K: Dow Hits 20K for the First Time in History
That’s proof that despite the downturns, the Market continues to have long-term growth.
Want to see some actual numbers? Check out this article that actually links to some interesting data. I Haven’t Lost Any Of My Money In The Stock Market, Even During The Down Slides.
So, one of the best ways to grow wealth is to regularly invest in the market and ignore your money.
Do you ignore most of your money?
Awesome post! I agree that putting your money in investments and forgetting about it is the best way.
Thanks, Lance!
This system has worked great for us, especially when I automated the contribution process. Auto bank drafts to our investment accounts took out the human element, so I didn’t have to manually invest.
I set up the auto-drafts as a “Bill” that had to be paid each month, budgeting it as part of our cash flow out.