Help me stop worrying!

[A Brit]

Does having an investable pile of loot make one paranoid, gloomy and pessimistic?

I can't say the "old me" ever really spared a thought about bank runs, money printing or even incompetent boards of directors. These days, such thoughts trouble the "new me" far too much. And that's when I'm in a good mood and not contemplating economic collapse, environmental catastrophe or social disorder.

At its core, this is an "is it just me?" question - and, if so, how do I stop it? It's spoiling the fun of being (almost) FI.

Trouble is, once you've stopped being a good little blinkered consumer and happy with one's trinkets - it's impossible to go back.

I am deeply envious of MMM's outrageously American optimism. But I'm A Brit and live on a gloomy rainswept island with Winter looming. "Mustn't grumble" is about the highest state of expressed joy and optimism that we can achieve in these parts!

[C40]

Stoicism can help..

What's the worst that can happen? You lose 50% along with everyone else? Then what, at worst? You go back to work? And you're working right now? So worst case is that things are like they are right now... You're enduring right now ok (I assume)

[almostthere]

Just to clarify, is it an "investable", that is yet to be invested, or invested pile of loot? Are the concerns over investing the money correctly or watching already invested money fluctuate?

[A Brit]

Just to clarify, is it an "investable", that is yet to be invested, or invested pile of loot? Are the concerns over investing the money correctly or watching already invested money fluctuate?

I suppose I just meant "capital" as opposed to "income". Being capital-wealthy (relative to one's expenditure level) is an entirely different kettle of fish to being income-rich (relative to a higher level of expenditure).

My "immediately accessible" allocations is currently (excuse rounding errors)
EQUITIES:GOLD:BONDS:CASH
64:1:18:19

If you count my defined benefit pension as an equivilent bond, it's:
40:1:47:12

If you count the value of the house it becomes
EQUITIES:GOLD:BONDS:CASH:PROPERTY
21:0:26:6:46

I'll start another thread about asset allocation in the "Money" section!

My original question is more about state of mind (I think) than realities.

[jennypenny]

Does having an investable pile of loot make one paranoid, gloomy and pessimistic?

Yes! I have some truly paranoid moments when I just want to bury all of our money in the backyard. Truth be told, I've done something close to that with a sizable part of it.

I've tried keeping it in different places thinking that would lessen the risk. It was too much trouble and too many banks/brokerages to keep track of, so I moved everything back to Vanguard. I've diversified the types of investments a little. I think about buying real estate. I re-visit the idea of the Permanent Portfolio about once a year. There are almost too many choices now and it adds to the uncertainty. I haven't really found anything that makes me feel settled.

I'm planning on investing in some things that I can insure to ease my mind a little. It will also help diversify things. But honestly, I get more paranoid as time goes on and that scares me a little.

[GandK]

You and I are on the same page on this issue. My husband (G) sees money simply as his ticket to freedom, and the more we have the better he seems to feel. It has the opposite effect on me (K). The more we have, the more I think about what could possibly go wrong.

To that end, G and I have an ongoing unresolved debate about investment styles. Over the last few years I have come to prefer a dividend growth investing strategy because it removes many - although admittedly not all - of my economic safety concerns. G thinks that the only people who should bother about dividends are those who are already retired. Since I stay home with the kids now and he's the one whose retirement we are planning, we're doing things his way at the moment. But every time I read a monthly update post by one of my favorite pro-dividend bloggers, I'm grinding my teeth because I would feel SO much better if I could see our actual income growing each month, instead of just a projection of an income that we might be able to purchase at some future point.

[almostthere]

I think GandK Alludes to one of my recommendations. Finding the investment style that is appropriate to your personality. For some, it is dividend growth, others real estate, others asset allocation. A personal investing statement helps too b/c it will keep you honest about your style. Next recommendation is tuning out the noise. Just stop taking in so much information be it from the press, books, or looking at your portfolio every day. You think about what you feed your mind. Be careful about what you take in. (Akin to tuning out noise, many studies show doing nothing is perfectly fine for maintaining high investment returns.) Another thought, if you not really contrarian at heart, I'd seriously re-consider your equity exposure. I personally love market dips b/c while I get scared, I also get really greedy. That has taken me years to cultivate. Also consider spending time understanding and studying the emotional side of investing. Jason Zweig writes very well on the topic. Finally, take up meditation. It will reduce anxiety and you will also begin to see the nature of the mind and emotions - i.e it is all passing phenomena, constantly changing.

[sshawnn]

I like each response above to the OP.

I think diversification through becoming more of a Renaissance person may alleviate some of the worry about money. Being more well rounded and skillful may build a confidence that overshadows the paranoia, gloom, and pessimism that you speak of. In other words, being less dependent on your money (earned or saved) to support your way of life.

[Chad]

Different investment styles and theories are all fine, but in the end you just have to develop an attitude of ease. If you lose money based on normal market action, which can be rather significant, you will be fine. If it's a situation where you lose basically everything, through no fault of your own, then it's highly probable this event would have screwed you no matter what you did with your investments. Plus, there are far worse things that could happen to you. So, grab a beer (or the vice of your choices) and don't worry about it, as there is nothing you can really do other than adapt.

[jacob]

You get used to it.

It's kinda like how employees don't seem to worry constantly about getting fired tomorrow; how people driving cars constantly worry about crashing; or how people eating burgers worry about plaque formation in their arteries with every bite. Once it having assets in the market becomes normal AND once you've taking a few fluctuations up and down you'll see that it's not something to feel fear-uncertainty-doubt about.

That's not to say you can just ignore just like you can't ignore your job, your driving, or your eating. Pay attention, but don't fear it.

[mds]

I have the same issue. The closer I get to FI (I'm about 50% of the way there), the more I worry about some external factor fucking it up for me. Keeping track of the news makes you realize that no one is really in charge. I don't follow the news very much, but some things you can't avoid. For example, this government shutdown gets me in a doom and gloom state of mind.

I think the best thing is to just accept that you don't have any control. Continue your plan and if you do think of something you can do to mitigate risk, do it. The other thing I'm trying, is to get out of the mindset that when I've reached $X dollars, that I've "made it". This is hard for me, but focusing on the present moment helps.

The other thing that may help may be to actually define your fears and figure out if you can do anything about them. Seriously worried about a zombie apocalypse? Maybe you should just buy a gun and take some classes (I know you're in the UK, so probably not possible?). Worried about some politician ruining things? All you can do is vote. It may help your psyche to know that you did what you could.

[lilacorchid]

I worry too. I try to tell myself that if I can do the work to get to FI, I will probably be somewhat better off mentally then most of the masses having panic attacks. I also have some skills that filthy rich would probably find useful to pay me for if it came to that.

[chicago81]

I constantly worry about my financial situation. Whether it is a large equity market decline, or a job loss, or having a tenant in my rental who causes major damage.

There is no rational reason why I should worry so much. I am on much better financial-footing than most americans. I have a decent amount of savings that would allow me to live for several years. Still I worry.

[pete]

Worrying about worries just makes the worries worse as it concentrates the mind on worrying. For the possible problem tenant, start learning some aspect of the building trade whether it be carpentry, plumbing or whatever. Plus, you will qualify for the builder's discount. Job loss? Read the classifieds; what related skills are beginning to be in demand? Learn them either online or at weekend college. Equity decline? You do have a year's supply of food stored?

[champ0608]

My ease comes from the fact that if I had to, I could go back to work and earn all that money back in just a few years. I don't want to, but it wouldn't be a catastrophe if I had to.

Another reason to feel bad for the folks who haven't opened their eyes. They spend 45 years trying to save a million bucks, and if they're lucky enough to do it once, they know that should disaster strike, there will be no second "at-bat."

[george]

I'm no expert.

I used to worry a lot. Have found that as I've made more mistakes in life and been able to forgive myself for my inadequacies I don't worry so much.

You're allowed to make mistakes, worrying won't stop that. Sometimes the world will throw you a curve ball, worrying won't stop that either.

You're human, humans make mistakes. Sometimes you'll make fantastic decisions too, make sure you give yourself a pat on the back for those. You'll probably make those because you've learnt form your mistakes.

Thanks Billy Joel

[A Brit]

There's two sides to this question. One is preparation, as some posters mentioned. But I noticed that the op didn't asked about ways to become better prepared, or safer ways to allocate your wealth; but he was asking about mindsets instead. The way he formulated the question hinted to me that he believes to be managing at least reasonably well his assets and yet he's not happy with his own attitude of worrying too much. I want to address this aspect of the question.

In one word, the answer you are looking for is "testosterone". It's the hormone of confidence. Produce more of it and you'll have much less doubts. There are some simple strategies to accomplish this. The one I like more is practicing anaerobic, intense and short duration muscular exercises. Some minutes a day in the morning right after you wake up does wonders. When I am not training martial arts and not doing some labour that already provide the muscular exercise, I like a simple recipe of three series of push ups of increasing amounts of repetitions. It's simple and I can do it anywhere without equipment.

It also works very well against depression, sadness and love passion.

Yes, I think I need to up my exercise level and shall look into the hormonal consquences (unless your post is a witticism simply suggesting that as I'm now taking more risk that I need bigger balls!).

I used to be a car-free all year round 20 mile a day bike commuter but stopped when work moved and my commute became too short. The change in exercise regime has certainly effected my fitness - and probably my outlook too. Time to dust of the bike and plot a longer route to work.

I like the idea that this will cure "love passion"! I've been cursed with this ailment three times in my life. In fact, I'm recovering from a recent bout right now (my wife is nursing me back to health with applied laughter at my predicament).

[Freedom_2018]

I find it hard to answer the OPs question without knowing what his social and physical habits are. I.e. does the OP have a good network of friends and family and a loving relationship? Does the OP eat healthful food and sleep well? Does the OP exercise and have some such good habits? Does the OP watch too much TV or spend too much time on-line instead of with real people?

[EnglishSaver]

Does having an investable pile of loot make one paranoid, gloomy and pessimistic?

I can't say the "old me" ever really spared a thought about bank runs, money printing or even incompetent boards of directors. These days, such thoughts trouble the "new me" far too much. And that's when I'm in a good mood and not contemplating economic collapse, environmental catastrophe or social disorder.

At its core, this is an "is it just me?" question - and, if so, how do I stop it? It's spoiling the fun of being (almost) FI.

Trouble is, once you've stopped being a good little blinkered consumer and happy with one's trinkets - it's impossible to go back.

I am deeply envious of MMM's outrageously American optimism. But I'm A Brit and live on a gloomy rainswept island with Winter looming. "Mustn't grumble" is about the highest state of expressed joy and optimism that we can achieve in these parts!

I'm a Brit and I know what you mean. Since I started watching every penny I have been more stressed as well.

[7Wannabe5]

Bigato said: In one word, the answer you are looking for is "testosterone". It's the hormone of confidence. Produce more of it and you'll have much less doubts. There are some simple strategies to accomplish this. The one I like more is practicing anaerobic, intense and short duration muscular exercises. Some minutes a day in the morning right after you wake up does wonders. When I am not training martial arts and not doing some labour that already provide the muscular exercise, I like a simple recipe of three series of push ups of increasing amounts of repetitions. It's simple and I can do it anywhere without equipment.

It also works very well against depression, sadness and love passion.

True, but...

A good (but perhaps too easy) read on the topic is "Heroes, Rogues and Lovers: Testosterone and Behavior." Based on what I remember from this source and hearsay from people I know who have taken it as a topical or injected drug (younger women and older men), high testosterone is a bright mood inducing chemical and therefore, in combination with other chemicals, it can also push you over the edge into high-risk taking behavior. For instance,acts of no-regard-for-own-safety heroic altruism are more likely to be undertaken by individuals with very high testosterone levels. Also, what you save in the penny bank of contentment by relieving yourself of hopeless love passion may end up being lost on the table of overly-ambitious sexual (or other)mania. For instance, I would wager that Charlie Sheen has very high testosterone.

Of course, as with most naturally produced human cocktail ingredients, upping your levels through natural or behavioral means, such as your exercise suggestion, will tend towards a more mellow moderate, healthy buzz. Successfully taking on a leadership role or achieving mastery over something will also produce higher testosterone levels. Therefore, it is possible to give another person a gift of higher testosterone by allowing them to take the lead (assuming a strong self-aware pose in the follow) in relationship to you. However, this is pretty much a lost art in our culture.