Financial Tip Friday: Don’t Look At Your Investments A Lot

Financial Tip Friday: Don’t Look At Your Investments A Lot

Ok I admit it. I have a sickness. The sickness is that almost on a daily basis I look at my investments. I don’t know why, but it is almost like a nervous tick. Even when they go down I still look. I can’t help it.

Don’t be like me. Don’t look at your investment accounts more than once a quarter or so. You should check them in-depth at least once a year to make sure that you are on the right track or maybe do something with them (e.g. rebalance your account) but other than that leave them alone.

Part of the reason for that is that it can make you crazy. I mean if you are paying attention to the markets right now you might have heard that this is the worst start of the year EVER. Oil is dropping like a stone and China is an investing nightmare. If you do pay attention and then look at your investments it might make you nervous because you most likely have lost money.

I personally have lost about $30000 over the past year or so. Am I worried? Not really. I mean I remember 2008. That was scary. We are due for a bear market. We are due for a reset. The markets can’t go up forever, but as I read in a Money Magazine article earlier this month the market ALWAYS and I mean ALWAYS comes back. So why worry?

Even though I know that intellectually I still look. It is kind of like a bad accident and how you can’t look away, but you can’t stop yourself.

So don’t look at the account more than once a quarter. Make sure you open all of your statements and review them, but don’t be like me and be obsessive about it. I mean there is nothing really I could do except to sell everything and hide under a rock and that wouldn’t be smart.

So I will sit tight, ride it out, and commit more money to the market because the market has ALWAYS come back. I believe it will again.

Comments are closed.