Perspective with the wild ride

The stock market took a ride this week worthy of Cedar Point’s “Steel Vengeance,” its newest roller coaster opening this year.

For the week, the Dow Jones Industrial Average closed down 5.2 percent, marking its largest weekly decline since January 2016, reported Market Watch, a financial information website that is a subsidiary of Dow Jones & Co.

Twice during the week, the stock market dropped more than 1,000 points in a single day.

According to the Washington Post, investors lost $3 trillion – with a “T” – in stock market value in one week.

A little bit of that lost value belongs to me.

It’s happened before

I’m one of the fortunate people who has a 401(k) from 24 years working at one company. It’s still 100 percent vested in stock mutual funds, a very aggressive plan, especially for someone my age (57). My wife and I have other, more conservative, investments as well, so I’m OK with a risk-taking 401(k).

In 2017, the Dow Jones Industrial Average rose 25 percent for the year, its best showing since 2013, said cnn.com.

Neither this week’s big decline nor last year’s big gains were unique. Both scenarios have happened before, and relatively recently, too.

Investors, who set a monthly record for sinking money into the stock market in January, pulled their money out at a record pace in the week ended Feb. 7, reported EPFR, a Cambridge, Mass., data firm.

Yikes. Too many investors bought high and sold low.

Take a deep breath, everyone. We’ve been here before, and survived.

Investing for the long term

I opened my 401(k) in the mid-1980s when I was in my mid-20s, and contributed to it for more than two decades. A small company match certainly helped. So did a wonderful stock run-up throughout the 1990s. Easy money, I thought.

I can live only in the moment, but if I live only for the moment I will miss so much.

Then the stock market crashed in September 2008, losing more than half its value by March 2009. My 401(k) lost about 40 percent of its value.

It took several years, but my 401(k) did recover, and his since grown much higher.

It’s a retirement account. I’m in it for the long term. In 2008, I knew I wasn’t going to start cashing it in for another 15 years or so, at least. So, the losses were only on paper.

That $3 trillion in value lost this week is on paper also. If you’re living off of that money, you probably should be preserving capital in more conservative investments. The stock market is for long-term growth, in general. (Some stocks are more volatile than others, of course, which is why every financial adviser will say we should diversify our portfolios.)

I haven’t checked my 401(k) balance recently. Neither has my wife (she’s more on top of it than I am). I’m sure it lost value this week.

But I’m not ready to start cashing it in yet. So I’ll just ride the wave.

Risk tolerance

Part of this equation is risk tolerance. Did I lose sleep this week when the stock market got volatile? No. I have a fairly high risk tolerance.

If you’re an investor and you did lose sleep – or you pulled a lot of money out of the market this week – then you probably are investing too aggressively. There’s nothing wrong with being a conservative investor. You won’t make the big gains in a boom market, but you won’t lose big during a correction or recession, either.

Each of us needs to determine our own risk tolerance. And also determine what the money we’re investing is for. Retirement? A nice vacation? Christmas gifts? Something else? It’s all good.

With the stock market, we need to take the long-term view.

Bigger rewards later

That goes against today’s instant gratification mindset.

We’d rather spend the money we make, all of it, rather than save some for a rainy day. We buy the latest technology – does every child, much less adult, need the latest smartphone every time a new one comes out? And I know people who buy lunch at a fast-food restaurant every day. A brown bag lunch is much more nutritious and costs a lot less. Eating out every so often is great – we do need to treat ourselves – but every day is an extravagance many of us can’t really afford.

Of course, if everyone acted like this, the economy would slow down because we wouldn’t be spending so much money. But we’d have more savings to spend on more meaningful, and possibly bigger, things. Saving money for a nice vacation or a new vehicle takes time and effort, but the rewards are so worth it.

Not going into debt for those things is one of the biggest benefits.

The future will come

Life in general is a lot like the stock market. It has its ups and downs, successes and failures. I’ve had great jobs and been fired. I’ve had emotional highs and lows (although I don’t often show them publicly). I’ve had great health, but I know I won’t live forever.

How do we handle the “life is not fair” moments, as well as the good times?

My retirement is much closer now than it was 30 years ago when I began investing. Starting to plan for my retirement when I was in my 20s will have a huge payoff very soon.

A big-picture outlook on life is so worth it. I can live only in the moment, but if I live only for the moment I will miss so much.

Take a deep breath. Plan ahead. Think long-term.

On average, Americans can expect to live 78.6 years, according to 2016 data published by the National Center for Health Statistics. Women can expect to live five years longer than men: 81.1 years vs. 76.1 years.

People who die young make the news, but chances are good that you and I both will reach retirement age. We should plan for it.

If we do that well, the roller-coaster ride of the stock market won’t cause us to lose sleep.

Not too much, anyway.

 

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Giving thanks, every day

Things I am thankful for today:

 

Good health

The ability to donate blood (most of the time) www.lifeshare.cc

A good job with a supportive supervisor, a great staff and flexible hours

Hector, the student I mentor in Cleveland

Monopoly, his favorite game (and Robert’s at the center where I work)

Greater Cleveland Volunteers http://www.greaterclevelandvolunteers.org/

The American Red Cross www.redcross.org

Interstate 90 (I spend a lot of time on it)

Interstate 480 (a great connector to places I go)

Good friends, locally and across the country

My wife

Our three sons

My parents, who are still doing well in their 80s

My sister

Good health throughout my family

 

Jesus Christ

The Bible

Discernment

Insight

Silence

Quiet time nearly every morning for decades

Pittsburgh-based Summers Best Two Weeks, a summer camp where I gave my life to Christ in 1975 www.sb2w.org/

 

Our two cats

Our previous cat, Paws

Coffee in the morning

The ability to write

The ability to edit, including my own copy

LinkedIn www.linkedin.com

Facebook www.facebook.com

The Christian Blog Collection

An Internet hearts game https://cardgames.io/hearts/

A good book (I’m reading Hamilton, which the Broadway musical is based on)

Re-connecting with high school classmates

Seeing some classmates at a picnic last summer for the first time in more than 35 years

 

Food on the table, something I never take for granted

A place to call home

Money in my wallet

My 401(k), future pension (I hope), future Social Security (I expect), as secure a financial future as I could wish for

Ability to tithe

Ability to be financially generous at times

Going out to dinner with my wife every Sunday after church

 

Time to walk/jog once or twice a week

Jogging in a warm spring or summer rain

Working up a good sweat

Colorful fall leaves

Cold winter air on my face

Good balance on an icy bridge

Buds on trees in the spring

Deer

Birds overhead

Occasional turkeys on the property at work

 

The lawn mower we bought in 1988 that still runs

The 21-year-old car I drive

The Chevette I drove for 18 years

My work van, which has 193,000 miles on it

A sweater my grandmother made for me that I still occasionally wear in winter. Grandma died in 1980

Our nearly 33-year marriage

July 24, 1975: The day I gave my life to Jesus

The red Schwinn bicycle I rode as a child (I still have it) www.schwinnbikes.com/

An indestructible hand-crank pencil sharpener that sits on my bedside table

My Indian Guides vest (it’s a tight fit, but I can still put it on, sort of)

Our card table, which was our first dining room table back in the day

 

Michigan State University https://msu.edu/

Classes that challenged me to think

The Magic Johnson-led basketball team that won the NCAA championship my freshman year

The beauty of the campus

University Reformed Church, where I met and married my wife https://www.universityreformedchurch.org/

Bailey Hall, the dorm where I lived all four years at MSU

 

Ames United Methodist Church, where we raised our children http://ameschurch.org/

The Ames softball team

Playing on that team with all three of my sons

The opportunity for my wife and I to both be leaders in that church

The youth directors who taught our sons so much

Sunday School classes

The 12-week membership class, which I helped lead for awhile

Small groups, one a couples group and the other a men’s group

A summer Bible study or two

Monday night basketball in the church gym

The structure and accountability of the United Methodist Church http://www.umc.org/

The chance to serve on a couple of statewide committees through the church

 

The Saginaw County CROP Hunger Walk, which continues to raise thousands of dollars to feed hungry people locally and worldwide https://www.crophungerwalk.org/saginawmi

Ultimate Frisbee on Saturday mornings

The annual Thanksgiving morning Ultimate game

Playing Ultimate in 8 inches of virgin snow

Mom’s Thanksgiving dinner (no matter how the Lions did)

 

The Saginaw News, where I worked for 24 years http://www.mlive.com/saginaw/#/0

Accountability, with respect

Proofreading to keep mistakes out of the newspaper

Participating with News employees in the federal summer lunch program, thanks to the leadership of one of the reporters

A clear mind on deadline

 

The beauty of Michigan’s Upper Peninsula http://www.michigan.org/hot-spots/upper-peninsula

Snowplows in winter to keep the roads clear

An engine heater in my Chevette on sub-zero January mornings

Pickford, my first home after college http://www.hsmichigan.org/pickford/

The Wallis family for frequently inviting this single guy over for Sunday dinner

Learning to drive in a region with no traffic lights and only a few blinker lights

 

Friends everywhere I’ve lived

Brothers and sisters in Christ everywhere I’ve lived

Wonderful co-workers at all of my jobs

Opportunities to volunteer in the communities where I’ve lived

The future hope of Heaven https://www.gotquestions.org/heaven-like.html

 

I could update this list every day. What are you thankful for today?

See the big picture

The devil is in the details.

According to Wikipedia (not my usual first source for details, but useful on occasion), that phrase refers to something that might seem simple at a first look but will take more time and effort to complete than expected.

This applies to numerous issues in today’s America. We get caught up in one or two details that we think make our point, and ignore other details – or, more important, the big picture – which might prove that we really don’t know what we’re talking about.

I’m becoming more of a big picture person these days. Details are important, of course, but only as they fit into the grand scheme of things.

Let’s start with a couple of Facebook pass-along one-liners that I often ignore, but these two got my attention this time.

Adultery

homosexuality

This post, by an ordained minister, defends homosexuality by saying that it’s not in the Ten Commandments, while adultery is.

My response:

Homosexuality is one form of adultery. Sex outside traditional marriage. You’re right, though; we’ve too often ignored the “traditional” adultery.

That generated a couple of responses:

Yes, traditional marriage such as marrying two of your cousins who happen to be sisters (Genesis 29), or a rape victim being required to marry their aggressor (Deuteronomy 22:28-29).

 

I have always thought it a very curious obsession, especially when read within the context of the chapters that surround it (e.g. no shellfish, no mixed garment clothing … I routinely break lots of those, but I don’t see anyone demonizing me for my impure behavior.

Given the objectively far more serious things humans can do to one another (e.g. murder, assault), it just seems like small potatoes for flawed humans to judge other humans so harshly based on what they deem are “bigger” flaws.

Here’s another one:

ignore

Don’t wear clothing of mixed cotton and wool! Leviticus 19:19

As long as we’re looking at “the context of the chapters that surround it,” let’s show that both of these posts do not do that. The Genesis 29 passage refers to Jacob marrying Leah and then Rachel. That wasn’t his first choice, but he followed the rules set by the girls’ father. The man married off his own daughters that way. And in the Genesis time period, when there weren’t very many people around, marrying cousins was not unusual.

The man buying the bride he raped is not “traditional” marriage, nor does the Bible call it that.

The Leviticus passage is even sillier. The quote is just one part of one verse that starts, “You shall not let your animals breed with a different kind …” My version of the Bible ends that verse this way: “… nor shall you put on a garment made of two different materials.” (The wool and linen, not cotton, passage is actually Deuteronomy 22:9-11, which proves the person who generated that post didn’t do his research.)

From gotquestions.org is this response:

https://www.gotquestions.org/different-types-of-fabric.html

The rule against wearing different types of fabric was not a moral law. There is nothing inherently wrong with weaving linen and wool together. In fact, the ephod of the high priest was made of linen and dyed thread (Exodus 28:6-8; 39:4-5). The dyed thread would have been made of wool. This fact is probably the key to understanding the prohibition. The ephod of the high priest was the only garment that could be woven of linen and wool. No one else was allowed to have such a garment. Apparently, this rule was to place some distance between the high priest and the people, with the ultimate purpose of reminding Israel of how holy God truly is.

Read the entire Bible before posting such comments. God supports “traditional” marriage, in many places in the Bible, for a reason. We can pick and choose a verse to say just about anything we want it to. But put it in the context of the entire Scriptures, and you’ll understand what it really says.

And God’s holiness is a major theme throughout both Testaments.

There are other big-picture topics that we miss as well.

The Cleveland Cavaliers

LeBron James

The Cavaliers had a 7-10 won-loss record in March, then lost their last four games of the season in April and gave up the No. 1 seed in the Eastern Conference to the Boston Celtics. Those of us worried about details were afraid that the Cavs weren’t ready for the playoffs as they limped into the post-season.

Not to worry. The players themselves all along were thinking big picture: repeating as NBA champions. They didn’t care, really, about their March record.

So far, they haven’t lost a playoff game yet this year. They swept Indiana and then Toronto, winning eight consecutive games, most of them easily,

Will they win the NBA championship again this year? Time will tell. Their big-picture focus has them prepared to do just that.

Retirement savings

saving

Nearly half of families in the United States have no retirement savings at all, the Economic Policy Institute says.

The median for all families in the U.S., which means half have more and half have less, is $5,000 in retirement savings.

However, according to the EPI, the mean retirement savings of all families is $95,776. That means the rich are getting richer and the poor are staying poor, because many of those who have retirement savings have a nice nest egg.

http://www.cnbc.com/2016/09/12/heres-how-much-the-average-american-family-has-saved-for-retirement.html

We are caught up in an instant-gratification society: I want it, and I want it now. Many of us aren’t willing to delay gratification. Some of us can’t, certainly, but some of us can and just don’t.

We let money control us, rather than taking control of our bank accounts.

More of us need to think long-term. We need to see the big picture.

Driving habits

I encounter this every day. If we would set our alarms five minutes earlier every morning, we might not be in such a hurry to get to work in the morning. Or to hurry back from lunch. Or to hurry … wherever we’re going.

Notice the rest of us, and get where you’re going. Just get there. And let me get to my destination too. I shouldn’t have to slam on my brakes because you can’t control your vehicle.

Here’s another one: I wish we understood that when we’re turning left at a major intersection and we block traffic when the light turns red, we’re causing gridlock. If we truly paid attention to traffic patterns, we’d understand that we’re not getting where we need to go any faster by blocking traffic. Indeed, we’re slowing others – and ourselves – down. Really.

Look up. Pay attention. Observe red as well as green. Things will go smoother. I promise.

Again: Just get there.

Obama’s legacy

obama.jpg

I see posts that say former President Obama was the best president this country has ever had. I’ve seen others that say he was the worst.

Please. Legacies aren’t determined five months after the president leaves office. It takes time, possibly decades, for history to show how a president affected the country.

Obama was the first black president; that’s obvious and historic. What he did, however, will take time to evaluate. That’s true with every president.

The long view

It takes time to read the entire Bible, to win a pro sports championship, to save enough for retirement, to determine a legacy. The devil really is in the details.

Winning long-term is so worth it. Even if I can’t see the results today. Look up. Think big. Think long.

That’s the winning formula.