This is just a little snapshot of the managed funds I’ve decided to partially redeem for a loss. It’s not a pretty picture is it?
In July I got the first of the troubling calls from my Financial Advisor telling me all was not well in paradise. When I left Australia in November 07 I had set up up my financial system to run on autopilot until I returned in three years. That was my first mistake. I had not been watching the markets at all, so when I heard from my advisor I was in shock. I didn’t have cash reserves readily available to cover a margin call, so I had to quickly scramble together the funds from various accounts. This was not so easy to do from another country with the international date line separating us.
After that first crises was averted, I had learned the lesson of ensuring cash reserves are easily accessible during troubling times. That came in handy when I received the second phone call in late October. This time it was simply a matter of an electronic payment from my mortgage offset account into my margin loan. It was a lot easier, but no less stressful.
This time, I’ve decided to redeem some of the units at a loss rather than pouring more money in. Yes, it means I’ll realise my losses rather than just watch them on paper, but I hope I’ll be able to sleep better at night. I hope I look back on this decision and am thankful that I made it. Only time will tell.
The next step is to have a really good look at our finances and come up with a plan to continue to build an emergency fund and pay down some of this crippling debt.
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