Less Stress and More Happiness

Less Stress and More HappinessTo explain why I think financial independence leads to less stress and more happiness, let me tell you a brief story. One day at work my boss called me into an unscheduled meeting:

Boss: “Jason, we are going to have to let go you. The company has decided to go in a different direction.”

HR Woman: “We are prepared to offer you 6 weeks of severance…”

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Super Coin Flip Risk Assessment

In the Coin Flip Risk Assessment, I presented a hypothetical coin flip as an introspective view of your feelings on risk. Well, one of my readers, (OK fine, it was my wife) put the screws to me and gave me a hypothetical Super Coin Flip Risk Assessment with the same premise as my initial question.

Risk Assessment

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Don’t Let Fear Prevent You From Winning

Disclaimer Reminder: I am not a financial advisor. This blog nor the author is responsible for investing decisions you make. Please consult with a professional before investing. You can find our full disclaimer here.

This is a continuation of the risk theme we explored in the posts titled “Winning Personal Finance Coin Flip Risk Assessment” and “The Stock Market Will Always Go Up Over Time.” In the first post, I presented a hypothetical coin flip as an introspective view of your own feelings about risk. In the second, we looked at some of the risks involved in investing in stocks.

Now we are going to try and tie the two together.

Investing and Risk Tolerance

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The Stock Market Will Always Go Up Over Time

Disclaimer Reminder: I am not a financial advisor. This blog nor the author is responsible for investing decisions you make. Please consult with a professional before investing. You can find our full disclaimer here.

This is a continuation of the risk theme we explored in the post titled Winning Personal Finance Coin Flip Risk Assessment. In that post, I presented a hypothetical coin flip as an introspective view of your feelings about risk. Now, we are going to dive into some of the risks involved in investing in stocks and prove that the stock market will always go up over time.

S&P 500 Returns

You Can Lose Money Investing in Stocks

Yes. It’s true. You can lose money in stocks. Let’s explore it a bit further.

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The WPF Coin Flip Risk Assessment

Disclaimer Reminder: I am not a financial advisor. This blog nor the author is responsible for investing decisions you make. Please consult with a professional before investing. You can find our full disclaimer here.

Nobody wants to lose money!

Psychologically, it hurts much more to lose than it feels good to win. Think about how you would feel taking $1K out of an ATM and then having it fall out of your pocket. Now think about how you would feel to learn everyone at your company including yourself were given a $1K (net of tax) bonus at work. Personally, I’d be much more upset about losing the cash than happy about the bonus.

Even though it hurts more to lose than to win, remember that in equal amounts, they have the same financial effect! Is this fear of loss holding you back when you invest?

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