The Internal Revenue Code makes a big distinction between earned income and investment income. Earned income is what you get for actually working -- actually sweating for income to live on. The popular impression of investment income is what some fat millionaire sitting on a beach gets for nothing, just for having investments.
That's not fair to fat millionaires!
During times of market turmoil like this, every investor who stays up late at night with worry and anxiety EARNS every penny of their investment income. It would be easier if you just had to get up in the morning and go to the factory for a job. At least, you would have some control over that. But, the average investor can do nothing . . . except worry.
That's not entirely true. The worried investor can control something, i.e., himself or herself. Refusing to panic earns long term profits. You cannot control market gyrations, but you can control yourself. It is a time for patience, not panic!
The irony is that panic doesn't end worry. If you panic and sell everything, there are still plenty of other things to worry about, like going back into the stock market to rebuild your portfolio, like the end of the world if your candidate is not elected President, if you develop health problems, or even worse, if a loved one develops health problems.
So, go to the beach and enjoy your freedom . . . from worry!
That's not fair to fat millionaires!
During times of market turmoil like this, every investor who stays up late at night with worry and anxiety EARNS every penny of their investment income. It would be easier if you just had to get up in the morning and go to the factory for a job. At least, you would have some control over that. But, the average investor can do nothing . . . except worry.
That's not entirely true. The worried investor can control something, i.e., himself or herself. Refusing to panic earns long term profits. You cannot control market gyrations, but you can control yourself. It is a time for patience, not panic!
The irony is that panic doesn't end worry. If you panic and sell everything, there are still plenty of other things to worry about, like going back into the stock market to rebuild your portfolio, like the end of the world if your candidate is not elected President, if you develop health problems, or even worse, if a loved one develops health problems.
So, go to the beach and enjoy your freedom . . . from worry!
