What would you do if you lost it all?

Discussion in 'Investor Psychology & Mindset' started by TMNT, 11th Oct, 2018.

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  1. TMNT

    TMNT Well-Known Member

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    Id like to think most of us on here are a unique breed with unique mindset

    What would you guys do if tomorrow, for some reason all your investments were wiped out to zero, or you had a situation where you had to sell all your assets to cover an emergency.

    to be honest, I dont think I would cope, to have worked and made sacrifices for my entire life, to start from scratch would be devastating

    Many say, if you can get to where you are now, you can replicate it, but its a long road!

    id like to think that im super mentally strong, but an entire lifetime's work undone, i dont think Id be able to handle it

    What would you do?
     
    Last edited: 11th Oct, 2018
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  2. samiam

    samiam Well-Known Member

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    Quite scary to think that way. But have to start again and work really hard....
     
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  3. qak

    qak Well-Known Member

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    A very scary thought!
    I would be devastated ... then I would pick myself up and get a job, resigned to the fact I would be renting and not financially secure for the rest of my life.

    Fortunately I am quite resilient so able to get past 'bad stuff'.
     
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  4. Morgs

    Morgs Well-Known Member Business Member

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    Find a way to do it all again.....

    The environment is different now compared to when we first started so the opportunities are going to look different...
     
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  5. Barny

    Barny Well-Known Member

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    Weird you ask this question as I had the same thought today. Assuming I could borrow straight away I'd max my borrowings and hit the casino till I'm back on track. Worst case I'm bankrupt and broke again.
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Start again
     
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  7. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    I've had this convo with hubby a few times. We'd be fine. The simplicity might be refreshing! :)
    That's exactly what I was going to say :)
     
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  8. Ross Forrester

    Ross Forrester Well-Known Member

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    This is my worst nightmare. I structure a lot to make sure this does not happen.

    If you view risk as a currency and you segment it this will not happen.

    I think I would be broken. My family would support me to get better. But I am not sure if I could.

    Hopefully I will never need to find out.
     
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  9. Property101

    Property101 Well-Known Member

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    I always live the same regardless of the circumstances.

    So I would continue to do more of the same and I would like to think that those I help and support would lend a hand to me the same as others can ask of me and expect.
     
  10. The Y-man

    The Y-man Moderator Staff Member

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    We've sort of been there, done that.
    While not back to zero as such, we did lose about half our net worth in the GFC in 2008 after 10 years of hard work.

    What panned out was:
    1. We still had our jobs. What made it even easier was that we were getting paid more than when we started (due to career progression). As much as people pan jobs, good jobs can lead to super fast track investments.
    2. We knew what had worked and what didn't - it's true, you lose the $ but don't lose the experience and knowledge. We could fine tune the strategy on restart (and make all new different sorts of mistakes!!)
    3. 10 years after the GFC, we are about 3 times the net worth we were prior to the big crash event.
    The Y-man
     
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  11. John_S

    John_S Mortgage Broker

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    “It's only after we've lost everything that we're free to do anything.”
     
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  12. Chris Au

    Chris Au Well-Known Member

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    I'm interested how your approach/mindset changed when looking at purchases/opportunities after your experience?
     
  13. neK

    neK Well-Known Member

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    Doing it again is the easy part. Knowledge and experience is already there.

    Getting over it would be the hardest part and to be honest.

    Similar to @Ross Forrester I think I would be broken. Whether I will have the strength to recover is unknown. Guess it really depends on the trauma caused by the situation.

    I'd like to think I could, but no one really knows.
     
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  14. Ross Forrester

    Ross Forrester Well-Known Member

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    It’s interesting to think how much of your success to date gives you confidence.

    I don’t know if that confidence would be there if it all went.

    Let’s all hope we never need to find out.
     
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  15. Perthguy

    Perthguy Well-Known Member

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    That's the position I was in about 15 years ago. No home, no job, no money. I didn't qualify for newstart or rent assistance so I was pretty much screwed.

    Everything I have now I have built up in the last 12 years. I wouldn't be trilled to lose everything but I could get back to where I am faster than I did it the first time because I learned a lot along the way.

    I would just start over and do it smarter next time.
     
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  16. HomePage

    HomePage Well-Known Member

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    I guess I'd have to come out of retirement, but it would take the complete loss of 3 out of 4 asset classes in which I am invested to flush me out. And if it was that bad, I'd be more concerned with physical rather than financial survival given the panic that would be out there from others affected by such a financial apocalypse.
     
  17. Wanttoretire

    Wanttoretire Well-Known Member

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    To lose everything?
    If we did, then the whole country would be in a problem.
    But we have embraced Kon Marie. Don’t need stuff.
    And. We are travelling in a motorhome all next year. Tried it out and love it.

    1. Stuff is over rated.
    2. Family is under rated.

    Put them together.
     
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  18. The Y-man

    The Y-man Moderator Staff Member

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    No gearing for shares.
    No more fancy financial products
    Lower gearing on properties
    Give finance minister more say in decisions

    The Y-man
     
  19. jazzsidana

    jazzsidana Well-Known Member

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    Not sure how would investment wipe out to zero?

    Selling asset in emergency I get it and the answer is - If bought in right areas at right price, you should be able to dispose them of quickly..

    And when building portfolio big enough, rule number 1 is - always hold at-least 6-12 months repayment in offset or some cash account so you don't have to sell in super rush and lose money..

    Cheers,
     
  20. hammer

    hammer Well-Known Member

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    Cracker thread @TMNT !