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This forum helped me a lot almost ten years ago, when I was just starting to get into investing. I owe a lot to the advice I received on here.
I see a lot of threads on different boards about people starting to panic regarding the market conditions. I myself thought about pulling the plug on my domestic index funds over the weekend, but luckily the markets were closed, I took a couple long walks, and I came to my senses.
I decided not to withdraw any money because:
I had a strategy in place. I knew a downfall was coming, perhaps just a good correction, back in November (just didn't know exactly when). I pulled out about 50K back then. The rest? I didn't want to pay a butt load in taxes, so I re-allocated my portfolio a couple months ago and made sure I was in a position where I wouldn't NEED to sell my positions. As Disney Steve talks about, YOU must have a strategy and appropriate allocation. If you make split decisions on the market (unless you are one of the few to have a crystal ball), you will eventually lose big time. Even now that the market is down over 20%, get a pen and paper out and draw up a PLAN. Before making any rash decisions, take daily quiet walks and try to help get your emotions out of the game. Exercise, eat healthy, etc.
This correction should be a good, hard reminder to not get greedy. Make a plan, allocate accordingly, and don't make split second decisions based upon market whims.
I see a lot of threads on different boards about people starting to panic regarding the market conditions. I myself thought about pulling the plug on my domestic index funds over the weekend, but luckily the markets were closed, I took a couple long walks, and I came to my senses.
I decided not to withdraw any money because:
I had a strategy in place. I knew a downfall was coming, perhaps just a good correction, back in November (just didn't know exactly when). I pulled out about 50K back then. The rest? I didn't want to pay a butt load in taxes, so I re-allocated my portfolio a couple months ago and made sure I was in a position where I wouldn't NEED to sell my positions. As Disney Steve talks about, YOU must have a strategy and appropriate allocation. If you make split decisions on the market (unless you are one of the few to have a crystal ball), you will eventually lose big time. Even now that the market is down over 20%, get a pen and paper out and draw up a PLAN. Before making any rash decisions, take daily quiet walks and try to help get your emotions out of the game. Exercise, eat healthy, etc.
This correction should be a good, hard reminder to not get greedy. Make a plan, allocate accordingly, and don't make split second decisions based upon market whims.