Good afternoon everyone.
How I learned to stop worrying and love the 4% rule
Last week, I asked if you believe in the 4% rule. I must admit to you that I had my own motivations when I asked the question. It is no exaggeration to say that I think about the 4% rule every single day (my brain is not normal). Like most of you, I was unsure of it. However, all of your great answers caused me to think about the 4% rule even more than I normally do and I now have come to a solution. My thoughts would take way too much time to lay out here, so I’m going to save it for another day. Sorry, I know that cliff-hangars can be a drag. Really though, you people are all great. Your answers are why I blog. Now, on to today’s question.
The Sky is Falling
While I don’t really trust and I definitely don’t act on information spouted out by the mainstream financial media, I fully admit that I enjoy reading** some of the silly articles and also listening to a variety of podcasts that they produce.
Lately, the only thing I read or hear about is how a terrible drop in the markets is imminent. Everyone is saying that we’re due. Since I started this blog 19 months ago, there hasn’t been a major correction. In days of old, I would have freaked out if the market dropped 15%. Now, I like to think that I’m above that. I really have no way of knowing until it actually happens, but I admit that the strange side of me is hoping for it just a little bit. Some mild drama keeps life interesting and I’d welcome a chance to pick up some investments at a discount.
It’s all just big talk for now though. The proof is in the bear market pudding. Until it actually happens, I can’t be 100% sure how I’ll react. I think my brain is adequately prepared though. I think.
I’m blabbing on now. What do you think about these prognostications? Does it keep you awake at night, do you not care or do you see it as an opportunity to swoop in and pick up some investments at a discount? Thoughts please.
*The tank is a favorite childhood toy that managed to survive one of my mother’s purges. The bull: I was playing in the yard a couple months ago with the children and this bull was half buried in the dirt. An omen? Who knows. Better than finding a little plastic bear or a real bear though.
**If I was a perfect investor, I’d tune this nonsense out altogether. Alas, we all have our faults.
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