Heard the above a few days ago. How insightful! It means that the passive index investing style is better for most people who have long investment horizon. Dead people do have a very long investment horizon because they don’t need to withdraw money anymore. 😊 Just let it compounding and compounding. That’s why generation wealth can grow like a snowball. Besides, dead people can’t be emotional. They won’t sell the investments during market downturn and buy them when the market recovers at high prices. That is costly mistakes. Unfortunately, many people do so especially if they are new to investing.
It is humility and bravery to admit human folly. During this current market turmoil, it might be better not to check on the current value of our retirement investment account. Just like no need to check on our house price during housing bubble burst if we don’t have to sell it. Let’s protect our sanity and safeguard the serenity of our souls. 😊
However, for those who are disciplined and good at managing their own emotions, it might be a good time now to go for bargain hunting now since the financial market is down so much from the December high. It is very exhilarating indeed!
Of course, no one can guarantee that it will not go down further. If we have long investment horizon, this is dollar-cost averaging anyway. It is a dream to only buy at the lowest point and sell at the highest point. This dream can be quite dangerously tempting when betting everything at one point of time. If we have a big chuck of cash, it might be advisable to split it in a few portions to buy it at different points during a period of time.
Investing is just like everything else in life. It is very crucial to understand oneself. Hope you pick the right investing style for you.
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