Quote:
Originally Posted by Jim Richards
The argument about leverage vs being debt free is always an interesting one. For us, the tipping point was hit about 6 years ago, when I was laid off for the first time (and hopefully last time) in my career. Being in the technology field, my employers typically went through rounds of layoffs every two years or so. It never hurt me, but it did leave me and my wife stressed out. A while after the tech bubble burst, my then employer went through quarterly layoffs for a year and a half. I was whacked in the 5th of 6 layoffs as the company shrunk its headcount by 85%. After a nice "summer vacation," I was back to work at my present outfit at 2/3 my former pay. Nowadays, I'm pretty much back on my career track. Touch wood.
My wife and I made the decision then that we must be able to live comfortably on one income. The best way for us to do that was to eliminate payments for where we live. We're finally at that point, and it feels good. YMMV  |
You just hit on the most important part of any investment strategy: personal comfort.
I have been very risk happy with my life in terms of putting myself in risk-rich environments physically.
But, investment-wise, I started following the advice of Andrew Tobias early and often. His strategy still resonates with me today: slow and steady, be aware and be comfortable with financial decisions, know the risks in advance. I still have a copy of his software,
Managing Your Money in DOS
The point is, we all have our own risk tolerances in life and in investing. I have tried not to exceed either.