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reportonbusiness.com: What? Me worry?(2)
September 26, 2007 From Friday's Globe and Mail by Doug Steiner

....after opening the most recent monthly statements from my asset-dieting RSPs, I haven't been smiling. And I've had to give myself advice about market risk-again. "I turned the October, 1987, crevasse into a hill of savings years ago. My strategy? Solve the following complex equation: Cash In - Cash Out = Savings. If you include a time element in the equation for retirement, it looks like this: Future Savings - Future Spending = Not Living Only On CPP. "....Here is some good and rational advice: If you have equity investments and this worry thing is really getting to you, take a breather. Think about shifting all your savings into good old Government of Canada treasury bills for six months. Want a little more action? Add some ETFs that track stock market indexes to your portfolio-that will give you market volatility similar to what you had when you were sleeping well before the markets went berserk.

But the best rational advice I can give you is to learn the discipline of setting risk limits and sticking to them. That will allow you to live with any volatility in the markets. It really is that simple.
Doug_Steiner  markets  risk-perception  calm  risk-assessment  panics  self-discipline  volatility  risk-limits  ETFs  retirement  risks  GoC 
march 2009 by jerryking
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