By Maha Heang 245789 @ Shutterstock.com
Coronavirus Infects Stock Market: Part XXXI
Let’s get this out of the way: There is no magic bullet to successful investing or to good health. Both are a culmination of decisions leaving you with a body (of work) to show for it.
Is there any doubt those most susceptible to COVID-19 have a weakened immune system?
Is there any doubt those most susceptible to investing mistakes take risks?
What’s scary is, both groups oftentimes don’t even realize their precarious state. They don’t see the risks staring back at them in the mirror.
They believe, for example that passive index funds are “safe.” But what if they lose their job, and 30% of their position?
They never see it coming.
Risk is a personal thing.
You need to know it like you know yourself. But sometimes we don’t have the tools to do that—to know what questions to ask or how to analyze risk.
Unfortunately there are a lot of folks second-guessing their risk today, or still not seeing it.
Consider, for example variable annuities that promise a steady income and not missing out on the market gains. At what cost? What if the insurer goes bankrupt? Will the state bail you out?
It’s times like these, when emotions are raw, that can make sound decisions, like staying out of the fridge, most difficult.
Don’t let your lifetime of work be ruined by a couple of real bad decisions. Because that’s all it takes to turn a culmination of good decisions into a lost body of work.
Read my entire series, Coronavirus Infects Stock Market here.
Originally posted on Your Survival Guy.
