What would you do if you lost it all?

I lost 50% just over 6 years ago when I divorced. Funny thing is that it gave me a new lease of life and have nearly tripled my wealth since by accelerating what I was doing and starting up a few new businesses. But to lose all, I don’t know how I would react.

 

It would be a good opportunity to clean stuff up. Wipe off all the ****** ‘investments’ which went wrong but still just ‘hang around’ as they aren’t worth getting rid of.

Obviously it all depends on how bad it is. If you go beck to a complete zero. Then now worries. If you wipe out and are at minus zero, then yeah, much harder to dig yourself out. Working to get back to zero would suck.

I would like to think that I’ve learnt from my past mistakes and would be able to get back to where I am much quicker the second time around.

Again though, would depend on exactly how bad the wipe out is.

Blacky

 

Been lucky enough to have this happen early in life and the lesson is clear...
You can loose everything except what is inside your head....but the trade off is time.
If you have time with good choices made from hard experience you can make it all back and much more, as I have been lucky enough to do.
Others just give up - which is OK if they really accept that choice.

 

We'd pick ourselves up, dust ourselves off & start again. Of course, that would mean we'd have to find jobs, but that's OK. We've been through some pretty hard times in the past, while having kids, so with just the two of us it would be easier this time around.

 

Look forward to a lot of tax free capital gains in the future (offset by the past losses).

 

Write a book about how I lost it all
Do motivational public speaking engagements about how I lost it all
Become a life coach

 

Your 'current' Mindset and mentality will be key in shaping up what happens next whether you lose it all or half.

That's why it's so important to stay positive and simply prepare for those bad days because they will come sooner or later... It might not be as bad as the scenario you envisioned above but be as prepared as possible.

It would be very hard to cope with losing it all but being prepared will make things a lot easier. And by being prepared i mean being prepared financially if possible but probably more importantly, being prepared mentally/emotionally.

Being prepared financially will help soften the blow but being prepared mentally/emotionally would help put you back on track a lot quicker and i would even think that it would drive you harder to get into a better place than where you were before losing it all.

 

Forward looking statements are very unreliable, but I’d imagine after licking my wounds I’d have to get back into it, albeit with perhaps lower expectations.

 

Lol the simplicity actually sounds really nice.

Pros and cons with everything in life.

I would probably work at my job until I earnt enough to build a cabin in the country and then live off the land.

I figure society would have had to screw me pretty bad to take everything Ive earnt away from me. So I really wouldnt want any part of it.

Either that or go on the dole and play video games and go on riding adventures.

 

How I am interpreting the original question is not that the investments fell to zero. But rather, I had to liquidate due family issues. If it all went to zero due to markets, that would be relatively easy (in comparison) to recover from. If it all went to zero due to family issues (eg health issues with children etc), then it really comes down to how much is left within - those things can really take a toll on a person.

 

I would probably go and take a huge gamble on a new business or career with the whole "nothing to lose" attitude. Probably starting with university doing something that I am passionate about.

Luckily my wife is in a bulletproof career, that is our safety net while I ride the booms and busts.

 

Become pally with papa and review my inheritance pronto.

 

Fairly straightforward for me and going through it right now as part of a business break up...

Just pick up what you can, ascertain where you stand and keep on moving.

Like someone else said above : When you have nothing you have everything as your free to do what you'd like.

 

Start again.
Am early 30's, and more on the business side of real-estate. I'd save my starting capital washing dishes. Could get it all back in 5 years, maybe less.

Perhaps a different answer if I was 65+.

I was in Venezuela 3 years ago. My ex-partners family and friends. All self-made millionaires. Went to Venezuela as immigrants from Europe for a better life.

They had several restaurants, commercial real estate they paid $1M US cash for, gorgeous beach houses, houses in exclusive neighbourhoods fenced off from the rest of the world.

I was shocked when some of them, in their late 50's, came to ask advice on how easy it was to start a lawn-mowing business in Australia.

Everything they owned was basically worthless. They could sell it, but could only exchange that much cash on the black-market. Instead of the official $12.5 to $1US, it was like $600+ to $1US, now its like $1,800 to $1US.

Imagine that. Poor immigrant. Hustle to become a self-made multi-millionaire. Then have to escape the country, leaving most of it behind. They work as cleaners here in Australia now. Hard workers, I can see how they did so well back home. They still have all their luxuries in Venezuela, but their kids are here. They fortunately had a few $100k saved in US banks from before, still, big change. They took it on the chin. Deep down though, pretty sure they are hoping things turn around back home. Doubt it.

 

For me. The fact that I have nothing further to lose I'd Probsbly take more risk.
That being said as I'm not 20 any more.
I might reflect on why I've lost it. All and if I could prevent it.


But at the same time, the reality of starting from scratch and the fact I'm 40s would dreally hurt.

I may just give up

 

If ones confidence and happiness in life is tied to past success then i believe they have a long way to go in the journey of life.

Having lived in regions where i saw people with nothing living full and happy and productive lives i know that ones belief in themselves isnt based on their success financially.

Travel and living and mixing with the worlds poor opens your eyes to what life is truly meant to be about. Living and enjoying it. We arent here for very long actually.

I know a guy who lived in the philippines who lost 10m usd and moved there as he had very little. It changed him. For the better he said. As he learned that friendships and community and living can be done with nothing.

 

At least your spouse lost 50% in the divorce too!

 

I know an old go who lost 70% of so of the marital assets when he divorced. He told me even if his ex wife offered to give it all back and double it he would not get back together again.