My wife wants me to sell everything because the markets down. What do I tell her?

I've tried to explain the strategy (we've made +/- 25% last financial year (our first year investing in the market following the ideas on these forums and doing research)), but she's worried about the market, economy, losing the gains, etc.

If anything, a drop would be a chance to buy more with the next lot of SMSF deposits.

What do I say to calm her down about the market?

Or do we do some profit taking to make her happy and keep on with the strategy (even diversify into more than just VAS and VGS)?

How do you make your nervous partner calm about your investment decisions?

 

Watch a Peter Thornhill seminar.
Also look at this.
In March 2021 my super was only 280k. I've only had contributions of say 25k in the last year. It's the sharemarket. Buy when it's low, it will always eventually recover and get to a new high...

I will say diversify a bit, I've got 100k of NDQ in my super now. Top Nasdaq shares will keep performing imo.

 

Thanks @Gockie , diversifying may be the answer

 

Where the heck is the market down?

Ahhh just buy her a V8 commodore. That'll settle her down.

 

If she gets a chance to drive it @datto

 

It does illustrate a potential problem when investing as a couple, or family. If you have different views of the market.......

 

It depends on reasons why she feels nervous. U need to discuss with her. Show her all examples where people whi have made money in similar investment...its a mindset thing...ask her to participate and suggest some relevant books to read...essentially she is worried about losing money...its hard to change other person's mindset but if its your partner and she is feeling nervous, yiu need to give her confidence. So you are on right track by asking on this forum. May be you can reduce amount of investment to start with and once she feels more comfortable, then you can invest more.

 

It sounds like she is letting the fear of loss get in the way of the bigger picture;
- Confidence will come through a greater understanding and more knowledge.
- Plan out the bigger picture with her.
- It is more risky doing nothing as you know where you will be at the end of the day. You need to take a bit of risk if you want to get ahead.

 

There's also capital gains tax on the profits.

 

What about a new one? Guarantee distract her thinking?

 

She might be a type of personality who is best not involved directly with investing. Some people just are not cut out for it at all. They are too motivated by fear (often baseless fears), and make poor financial decisions because of it.

I don't know what you can do to 'convince' her. I don't know if that is an actual possibility with a fear motivation that isn't actually based in reality.

What you can do is try to reiterate to her that she needs to stop looking at the markets and the balance and take a step back from it all. And perhaps look into what she needs to feel 'secure' (outside of selling investments) because she obviously isn't feeling financially secure at the moment. Would she feel more comfortable if you guys had a bigger emergency fund in savings somewhere? (I am assuming you have a basic emergency fund, if not, start saving one). Do you guys have any debt that you could work on eliminating together to help her feel more secure? Etc.

Its hard to advise too much without actually knowing your wife or your overall financial position.

 

Depending on her personality, you could get her on here to read this thread. That would depend on how she might take it though. It might backfire, if she takes offense to anything written by yourself or others...

 

Has she seen below chart? Also buy her a book Stock for the Long run by Jeremy Siegel



Cheers
Oracle

 

My husband is the same as your wife. No books nor videos can convince him. Glanced at PT book for 15 mins and handed it back to me. But he does not have any fear because he is not interested.

 

More diversified than VAS & VGS? Those two funds would cover most of the worlds largest companies. Not sure how much more diversified you need to be than that. Wouldn’t adding NDQ actually result in less diversification? VGS I believe would already cover the shares held in NDQ and all you would be doing is increasing exposure to that sector over the rest. Technically reducing diversification.

 

It's a difficult one for you @d3outguncom.

This will be unlikely to convince your good lady. I've got the OK to post it, excluding the actual amounts involved, but I can say the value is six figures. It's from one of my children who recently turned 26 and has held this, and others, for 18 years. There have been no sales only purchases including today. Of course, nobody knows what the next 18 years will bring yet there is a case for optimism.

 

when my wife tells me something ...... i do it.

Usually it is about the rubbish, or tidying up after myself. But if she told me to do what OP has indicated. I would do that also.

 

The investment strategy needs to be something that you’re both comfortable with. It shouldn’t be about how to make your partner ok with with you have decided to do but instead come up with a strategy that you’re both comfortable with.
If you’ve made 25% last year how about taking the gains off the table and stashing them, then continuing with what you’re doing.

 

Nice, so around $152'000 gain in only a few months