No matter how well it sometimes seems to go, there’s always the odd beating awaiting us. Looking back at the 2007/2008 fiasco it’s evident that that beating was quite severe. Yet somehow, we seem to have survived. I think the more you are aligned and invested in society’s ‘normal’, the more severe the beating at times. End 2008 / beginning 2009 was a killer, especially if you were at the stage of wanting to retire and step off permanently. You would have suddenly found 25% of your perceived wealth missing. Hard to stomach!
We didn’t suffer as badly as some. We sold off most of the units for something [can’t remember what !?] just prior to 2007 and so didn’t have too much invested here by the time end 2008 rolled in. This obviously affected more than just this fund. All policies, pensions, RA’s etc – anything with an underlying stock market investment, would have fared little better.
2011 was also a dismal year for growth. It showed in the salary increases [or lack thereof] over the period 2009 to 2011 as well. Since then though things seem to be back on track.
I’m not one to monitor this kind of thing though. This is really the first time I’m doing a deep dive into this. I guess with the dream of 2024 now a looming distinct possibility the financial side of things, certainly understanding the underlying value at least, has taken on new importance. The interest in daily stock-watching is still not there. That’s not me and never will be. But to understand what there is currently and to understand the probability of if and how it will grow to an amount capable of supporting life without full-time work, that is vital study at present.
I can’t say that we are where we are today because of any personal market savvy or investment prowess. We’re probably where we are because of who we are and what we do: hard consistent work, continual focus on trying to be frugal and reduce the conversion of temptation into spending [not been too successful in this area wrt cars though]. We make up for lack of cash with back-breaking hard work. That and a little bit of luck keeps us moving in the right direction I think.
It’s worked so far so we’ll keep plugging away with the full focus on:
- Maximise current earnings
- Minimise current spending
- Kill the debt down to more comfortable personal levels before
- Increasing the savings spend
And while this is happening, live a little as well. Tomorrow may not be a rosy as today !