Comments on: How Do You Deal With Financial Loss?

By: Corwin

Corwin — Tue, 06 Sep 2022 21:16:08 +0000

In reply to J. Money. Hahaha, I know "the look" very well.

By: J. Money

J. Money — Mon, 05 Sep 2022 13:13:12 +0000

In reply to Corwin.

my wife stopped wearing her engagement ring 10 years ago too for that very reason – scratching of the babies :) also kept getting snagged in her clothing as she put stuff on! still sucks to lose it though…. every now and then I ask her if we should sell it and do something fun with the money but she gives me “the look” so I wait another year or so until asking again 😂

By: Samuel

Samuel — Sat, 03 Sep 2022 23:25:04 +0000

I think you learn more from your mistakes than you do from your wins. If you frame it that way you can grow as an investor over time.

By: Corwin

Corwin — Sat, 03 Sep 2022 21:42:14 +0000

Fully agreed on the tax loss harvesting! That could help take some of the sting out.

We’ve never gambled with crypto (and I do consider it gambling/speculation, vs investing), but I do have a painful loss story. About five years after we got married, we lost my wife’s multi-thousand dollar engagement ring on a trip. That really stung at the time – especially since we had just removed jewelry loss from our insurance policy. But over time we recognized the benefits of her not wearing that ring anymore: she no longer had to worry about wearing something so expensive any more (just bought super cheap and comfortable and nice looking silicone bands online), or about scratching the kids or other stuff with the sharp rock on her hand. And it was a lot more comfortable for me to hold her left hand as well!

So sometimes it just takes time and a new perspective. This loss could be the lesson needed to avoid even more expensive losses in the future, and hopefully a good lesson about gambling vs investing. Much better to put that money in VTSAX I think!

By: J. Money

J. Money — Fri, 02 Sep 2022 11:11:43 +0000

In reply to Impersonal Finances. good point on the tax side of the equation! her loss will actually be thousands less in the end after reporting it in taxes...

By: J. Money

J. Money — Fri, 02 Sep 2022 11:09:40 +0000

In reply to Caro. :)

By: J. Money

J. Money — Fri, 02 Sep 2022 11:08:10 +0000

In reply to DahliaGirl.

thanks for sharing your story :)

I like the point that the money is inconsequential later in life! This is so true… the more you keep at it over the years it becomes a drop in the bucket… Hard to grasp early on since it represents such a LARGE number, but that’s an excellent tip to keep in mind – I like it.

By: Impersonal Finances

Impersonal Finances — Fri, 02 Sep 2022 04:07:05 +0000

Make sure to do some tax loss harvesting! $15k is a tough pill to swallow but I’d say it’s OK to take a risk with 3% of your portfolio in your 20s or 30s. I’m sure the money was invested with the hopes of big returns, but you have to look at any risk asset as if you’ll lose all of your money. Nothing you can do now but take it as an expensive lesson and realize it’ll be a blip on the radar years down the line.

By: Financial Fives

Financial Fives — Thu, 01 Sep 2022 17:13:39 +0000

You have to look at the big picture, like J says look at you overall gains over tiem. No one can predict how much their gains will be, and none will be the same.

The way I look at it, risk money you can afford to lose and wouldn’t be significant to your life. That includes lending money to friends!

You can’t control what happens to companies. Just do you due diligence, cut your losses and move on. You’ll do better next time.

By: freddy

freddy — Thu, 01 Sep 2022 17:10:16 +0000

most of my regrets involve selling investments that went on to thrive, like united health back in 2009 and adobe soon after. oops. you gotta just chalk it up to experience i guess.

i can’t think of anyone who put money into crypto and got that money back out easily. seems like a black hole to me.