Several times over the last several decades, friends told me to get out of the stock market. I didn’t, the market severely dipped in value, my friends sold at a loss, and then the market strongly recovered. I made money. In 2008, I lost a third of my money (technically on paper) in the market. It recovered and my money more than doubled from what it was before the dip. Time is your friend in the stock market. Stay in long term, and you’ll keep up with inflation and then some. The market is not for those who panic due to emotional whims. My main concern is paying taxes on the gains, waiting for President Trump to reduce taxes and then I’ll sell.
Used to be that if you put $1000 in the market, and $1000 in silver coins and buried them, 60 years later the coins were worth more than your stock.
Excellent observations and advice. To add one point-dollar cost averaging. Invested a fixed amount every month or quarter.
Thanks for this. My mom’s trust is in the stock market and I have no say in the matter. So that is somewhat comforting.
Sounds like my story!
My main concern is paying taxes on the gains [...]
Same here - was forced out (after 16 years) by my broker (ML) last July because they are cutting us non-U.S. residents loose. Expecting to pay beaucoup capital gains taxes this April.
[...] waiting for President Trump to reduce taxes and then I’ll sell.
"Getting out" is always the hardest part. Don't wait for lower taxes!
Regards,
Like you, I saw 2008 as a buying opportunity — i doubled what I put in each week for the next five years. Made my retirement much better.
I think however, the key item is that the equities market, the stock market, should only be less than half of your investments. Real estate, bonds, cash and debt freedom really should make up 60% of your net worth. Paid for home and vehicles, freedom from debt for toys, that is wealth.