Over the past several years, my portfolio has grown considerably through a combination of good returns plus regular savings and contributions. These days, I’m comfortably in the Coast FI stage of my financial independence journey, where my portfolio is large enough that it should grow enough to cover my expenses at traditional retirement age, even if I don’t save another penny again (note that while I am at Coast FI, I’m still saving and investing – but being at Coast FI puts a lot less pressure on our household when it comes to saving and investing).
Having a large portfolio is undoubtedly a great thing, but it does create some surprising mental considerations that I never thought about when I was working with far less money. As a bit of background, I started my investing journey about 10 years ago. Those ten years have seen a big upward trend in the market, but it did come with some periods of volatility and flat growth. We had a bit of a flattening right around when I started investing, then that big pandemic drop in 2020, and then some periods of flat growth in 2022 and 2023. From the looks of it, we might be entering another dip (or worse).
We all know that investing is about thinking long-term and staying the course. When I started investing, my portfolio was small, and even when things got a bit volatile at the beginning of my investing journey, it didn’t feel like that big of a deal. Things went up and down, but the money I was working with wasn’t that much in the grand scheme of things. But I’ve noticed now that as my portfolio has grown, these natural market fluctuations can look and feel a lot worse to me. And that forces me to have to really remind myself what investing is all about.
The Problem With A Larger Portfolio
Much of investing is a mental thing- where you have to either stop looking at your numbers all the time or be comfortable when you see things drop. I try not to actively check my investments all the time, but I have my investment accounts logged into the financial tracking app I use, so inevitably, I do see the market fluctuations that happen with my investments (I use a paid app called Monarch, which is what I switched to after Mint shut down). From a mental point of view, I’m always telling myself that I’ve picked a reasonable asset allocation, that I don’t need the money now, and that I believe that the market will go up over the long term.
But I’m also human, and seeing the value of my investments drop does hurt. Interestingly, as my portfolio has gotten larger, seeing my portfolio drop seems to hurt even more. With less money, the drops can be severe, but from an absolute number perspective, it never felt like that much. But I’ve noticed that as my portfolio has gotten bigger, some of these market drops can be huge from a pure numbers standpoint. Whenever the next big market correction happens, my portfolio could drop by six figures. People with really huge portfolios can see even larger drops from a pure numbers standpoint. No matter who are you, that can be hard to stomach.
So, with all the uncertainty out there about what’s happening with the market, I’m writing this post as a reminder to myself about what this investing thing is all about.
Five Things To Remind Myself About My Investments
1. I Don’t Need This Money Soon
Perhaps the most important thing I remind myself of when the market starts to get choppy is that I do not need this money anytime soon. I’m not on the early retirement path at the moment – these days, the plan is to go the traditional route, which means I’m likely not going to need any of this money for two decades or more.
Since I don’t need this money anytime soon, worrying about market fluctuations or second-guessing my asset allocation isn’t helpful. All the money in my investment accounts – gains or losses – is only on paper. That’s not to say market fluctuations don’t have a meaningful impact on my real life. The stock market often correlates with the general health of the economy, so if the market drops, it’ll likely impact my income too. But income and the health of the economy is something separate from my investments.
All this to say, it’s one thing if I needed this money soon – in that situation, I’d rightfully be worried about what the market is doing. But with literally decades of investing time left before I even need to think about this money, there’s really no use fretting about things now.
2. My Investments Are Good Enough
One of the most important concepts to understand about investing is that what you’re invested in doesn’t have to be perfect – it only needs to be good enough. It’d be great if we could make a perfect portfolio of investments, but unless you can see the future, there’s no way anyone can know which portfolio is going to be the perfect one.
That being said, go to any investing forum and you’re going to see people arguing about all sorts of minutiae of what makes a good portfolio. It’s fine to argue about what you think is better, but I think that people often lose the point when they do this – that even if your portfolio isn’t the “perfect” one, assuming you’ve picked a good enough portfolio, you’ll probably be fine too.
What exactly makes a portfolio good enough? Good enough means your investments are reasonable and will likely get you to the finish line (in this case, the finish line means financial independence). It doesn’t mean you’ve picked the best portfolio possible. It could even be the worst portfolio when compared to other good enough portfolios. But as long as it gets you to where you need to be, that’s all you need.
I’m currently doing the JL Collins route of 100% in VTSAX in my Vanguard accounts and similar Total US Stock Market Index funds with my non-Vanguard accounts (specifically, with my Fidelity Solo 401k and Fidelity HSA, I’m invested in FSKAX and FZROX respectively). I chose this allocation because it was the simplest one when I first started investing and the arguments behind it made sense to me. I’ve seen tons of things saying that having an international allocation will do better and that it’s the safer bet in the long run. That very well may be true, but no one really knows.
At a minimum though, I am fairly certain that going with a Total US Stock Market Index Fund, even if not the best choice, is likely going to be good enough. And that’s all I need.
3. My Contributions Help Steady Any Downturns
The nice thing about long-term investing is that, so long as you stay the course, you’ll keep investing through all the ups and downs of the market. We often think of investing as a beginning number that moves up and down, but in fact, there are two things in play when you invest. There’s the value of your investments thanks to market movements, but there’s also the value of your investments through your contributions.
There’s a big psychological benefit here that often gets overlooked when you’re still in the investing stage of your wealth-building life. That’s that even if things take a dip, so long as we continue to invest, those dips won’t feel as bad. This is especially true if you’re someone who is saving aggressively because even if your investment account value drops, you’re still building it up with your contributions. Depending on how big your portfolio is, you might even replace all of your losses with your contributions.
This is exactly what happened in the early days of my investing life. I started investing in a sort of flat period in the stock market. And while it didn’t feel great to see my investment return staying flat (and being negative at some points), the actual pain wasn’t so bad because I was continuing to put more money into my account each month. As a result, I never really felt like my investments had dipped much because any losses were always being replaced by new contributions.
With a larger portfolio, it’s a bit harder to replace any huge losses, but even so, I’m continuing to save fairly large amounts, which means any drops in the market are slightly softened with continued contributions (one downside though is that because I’m self-employed, I do my contributions once per year, so I do feel the dips in the market a bit more than when I had a traditional job where I was investing with each paycheck).
4. I’m Dollar Cost Averaging By Necessity
This brings me to another point about investing over long periods. There’s often a fear that we’ll invest at the top of the market and then instantly see our investments crash the next day. There’s no doubt seeing this happen might crush your spirits and cause you to panic. This is why one recommendation to help steady this fear is to dollar cost average your investments. This is where, rather than investing your money all at once, you spread out your investments over a period of time. The idea is that by dollar-cost-averaging, you’ll limit the blow of any dips since you’re going to be investing at different times. Sometimes you’ll be buying when prices are high. Other times, you’ll buy when prices are low.
Here’s something to realize – almost all of us dollar cost average simply out of necessity because very few of us suddenly have large sums of money to invest all at once. If you have a regular job, you’re likely investing every few weeks as you receive your paychecks. Even if you’re self-employed like me, you’re probably making new contributions at least once per year.
From a practical standpoint, what this means is that I know I’ll never make my investments only at the worst time. There will be times when I’m investing at better or worse points. But I’ll never only invest at the top or bottom of the market.
5. I’ve Gone Through Bad Periods Before
A final thing to note is that, while I have only been investing for about a decade, I have been through bad market periods in my life, and so far, things have always seemed to bounce back.
I graduated college in 2009, right in the middle of the financial crisis. Of all the years you could graduate college in this century, 2009 was probably the very worst year. I couldn’t get a job and ended up moving back home and getting a minimum-wage job. And yet, despite all that, I survived and am doing very well today. While I wasn’t invested in the market at this time due to a lack of money and financial knowledge, I sure felt the impact of the financial crisis.
In March 2020, we had a global pandemic that we hadn’t seen in a century. For a brief few months, VTSAX and other broad-market index funds dropped by over 25%. it was short-lived thankfully, but this was a period where it felt like the world was coming to an end. And yet, once again, we bounced back. Some people probably panicked and sold or adjusted their portfolios. I did not and kept on going.
And we’ve had some flat periods over the past 10 years too – periods where people felt like a recession was probably coming and that the market couldn’t keep going up. Through it all, I’ve been able to stay the course.
I don’t know if I’ll panic if we get another financial crisis. Maybe we won’t get another one like what happened in 2008 and 2009. Maybe we will. But I do take comfort in knowing that I’ve been through some downturns and a massive global pandemic – and I still was able to stay the course.
Final Thoughts
Times are very uncertain right now. And whenever things take a big dip, it’s going to hurt to see my portfolio value drop by five or six figures. Some of you reading this might be in a similar position to me.
Remember that so long as you’ve picked a good enough portfolio allocation, don’t need the money anytime soon, and can mentally keep yourself from panicking, you’ll likely be fine. That’s something I have to keep reminding myself all the time.
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More Recommended Ebike/Scooters
Check out these other ebikes and scooters I’ve reviewed:
- Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
- Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
- Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
- Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
- Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
- KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
- Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
- Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
- Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
- Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
- Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
- Hiboy S2 Scooter – The Hiboy S2 is an excellent entry-level commuter scooter that’s perfect for someone looking to save some money in transportation costs and improve their commute. Check out my Hiboy S2 Review.
- Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
- Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.
More Recommended Investing App Bonuses
For additional investing app bonuses, be sure to check out the ones below:
- M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
- SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with just $10 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
- Webull (20 free stock shares) – Webull’s current promotion gives you 20 free shares valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free shares using Webull.
- Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
- Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
- Public (1 free stock) – Public gives you a free stock valued between $3-$70 if you open an account using my referral link.
More Recommended Bank Account Bonuses
If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.
- Upgrade ($200) – Upgrade is a free checking account that’s currently offering a $200 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $200 Referral Bonus – Step By Step Directions.
- Ally Bank ($100) – Of all the banks out there, Ally is, without a doubt, my favorite. At the moment, Ally is offering $100 to customers who open an eligible Ally account and meet the requirements. Here are the step-by-step directions to earn your Ally Bank referral bonus.
- Fairwinds Credit Union ($175) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
- Chime ($100) – Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
- US Bank Business ($800) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
- GO2Bank ($50) – GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $50 referral bonus.
- Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
- Novo Bank ($40) – Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
- Varo ($25) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $25 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.
Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.
Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.
Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin’s favorite fintech apps include:
- SoFi Money. A really good checking account with absolutely no fees. You’ll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
- 5% Savings Accounts. I’m currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it’s free, and all of your funds are FDIC-insured. I explain how it works, why I’m now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
- US Bank Business. US Bank is currently offering new business customers a $800 signup bonus after opening a new account and meeting certain requirements.
- M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
- Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.
Feel free to send Kevin a message here.
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