One day several weeks ago the stock market lost hundreds of points in an instant. They think that some trader with "fat fingers" made a big mistake and dumped millions when he meant to dump thousands.
A few days later, as the DOW continued to sink, I used my own "fat fingers" to take a significant chunk of money (for me) out of the market.
That was stupid.
Why am I sharing this? Because I believe that all of us need to be responsible with the resources God's entrusted to us. It's darned scary sometimes. And, of course, we do some dumb things when we're scared.
So, when I finished being angry with myself, I started the slow, cumbersome, difficult process of getting back in. This required much research and consultation with a professional who has no personal stake in what or if I buy.
But I had to listen to him tell me about 1,000 times, "You can't time the market!"
"Yes, I know. What I did was stupid. Let's move on."
I had to restate my priorities. They're very clear:
1. I want enough money to live simply the rest of my life but, more importantly, to take care of end of life illness and issues. This required an assessment of how much longer I will live. Sobering.
2. I want to be able to give money to the causes that I feel led to support. (By the way, these have already been chosen.)
3. I want to leave a little something to my children even though they don't need it and have never expressed the slightest interest in it.
Next, I had to take yet another test to assess my risk tolerance. Like most everybody else, it's high when the market's high and nil when the market's low. But the test did give me a guiding number.
Then to the scary picking of funds and doing the actual investing.
So I no longer have the money under my pillow or buried in the back yard. I've done the responsible thing. Hopefully.
I just hope I don't get nervous and develop Fat Fingers again.
***
