This is a good thing to wrap one’s mind around. I admit I did not take risk seriously during our earlier career days. We would lose 100K in a couple of weeks during the dotcom era and just laugh about it.
I still laugh about it now. Scary really. But isn’t that how life is? The best advice is usually recognized by those who do not have the time to capitalize on it.
I have been investing for over a quarter century. I have come to learn how I handle risk is.
I think the current valuations for the equity market are high. But I will not be dancing in or out of the markets. I will likely use a sliding scale to adjust the level of risk that I am willing to take.
I can handle about 40% equities risk currently. I did not ride the market up to this point. Thus no need to dump unleveraged monies fully into the market.
See this is my issue with advice and the internet bickering. Even though I show my current portfolio, only I know what other levers I can pull. Everyone’s situation is different.
That is the point with all this. One best think, like really think about what one’s true situation is. And then adjust the “advice” for yourself.
That’s why I don’t care if people do not agree with what I think. It doesn’t really matter. Only I have to live with the consequences of my decisions.
So here is my current plan.
If markets go up I will capture enough of the gains with a 40/60 portfolio.
If markets stay sideways I will continue with our current plan to invest our new monies into VGRO monthly.
If markets go down I have given myself a max limit of 80% by converting it all to VGRO.
I have fully paid off real estate. We have saved for my daughter’s education. We already take care of my parents.
And we both have our careers. My husband still works full time and I am part time.
After a while, you realize that there is nothing more one can do.
What if there is a depression like event? I would move into my smaller home and rent out my current nicer home. And we would all keep working. I would just work more.
Plus I spend so freaking little. Spending more has had zero to do with my quality of life for such a long time.
I live about the same level of comfort as I did during medical school. I was pretty happy during med school. Life was easy and simple. I was surrounded by friends, worked out regularly and was learning an interesting field.
Probably the main reason I was never disappointed in Medicine is because I sort of fell into it. I did NOT spend a decade dreaming of this career. There is nowhere to fall when you don’t put things on a pedestal.
I always knew Medicine was just a more colourful wrapping to something called work. I am definitely a realist.