My Wife Hates Losing Money
When comes to investing, my wife is a long term investor, does not like a lot of risky investments in our portfolio and loves seeing the nest egg grow. Given her temperament for investment, when I want to purchase stock that is more risky like Baidu NYSE:BIDU (The Google of China) or Twitter NYSE: TWTR even Facebook NASDAQ:FB, I better start showing some equity growth along the way or I’m in trouble.
Spread the pain around
If your wife is like mine, you have to spread the pain around. I lost my shirt with Renren (The Facebook of China). It went from $18-$20 a share to $2-$3 a share within a year. We lost a mint. To keep my wife happy I showed her the profits we were making with stock like Dollar General (NYSE:DG) and Baidu. Both stock numbers were up over 100% at the time and that calmed her down.
You’re going to loose money, but it you have other investments that are making money, brag about those, which I do, so the pain is not so bad with the investments that have negative numbers.
Sell when you feel you lost enough
In my financial class, our instructor told us that if a stock looses more that 15% sell it because it never comes back. I’ve been stubborn over the years and haven’t paid attention to this advice and it has cost me. Determine what your risk tolerate is and sell the investment when looses reach this point.
Set aside a special account for risky investments
A financial advisor is managing the majority of our funds, so the more risky investments are with my Scottrade account.
www.scottrade.com. This account is where I make my more risky investment, which today is outperforming the market by 2.3%. The idea if I loose it all, it will not hurt my living standards. My account has managed to maintain several profitable investments over the years. My MasterCard investment for example I purchased stock at $45 a share and sold out at $186. With the profit I purchased a new diamond ring band for my wife and that made her real happy.
Keeping cash for that special date
I have cash from my investments to enjoy a romantic evening with the wife. I let her know that the evening is being paid for from our profit from our investments. It only works when I haven’t mentioned how much money I lost that day, week, or month.