They'd also probably tell me not to check my mutual fund balances every day, but that's like asking a kid to sit quietly at an ice cream store/petting zoo/big ball pit/buzz lightyear superstore. Yeah right, of course I am going to look.
Even though I know these things, I still freak out. So my new plan has these features:
- I will still get to look obsessively at something.
- The values will always go up.
- When the market is doing terrible, the values will go up even faster, making me happier when the market is bad not depressed.
Additionally, I can estimate what the value of the fund will be in 40 years by compounding it by 8%. So if I want a cash value I can still have it. I can use this cash value to know when to rebalance.