It’s about 2pm, Thursday, when I arrive back at my desk after lunching on Japanese with a good friend of mine.
And as soon as I see my mobile, my face lights up because I can see three missed calls from Dave*.
“Silly bugger! I’ll bet he has another daggy dad joke for me.” I mumble to myself.
When it comes to friends, Dave’s like the Rock of Gibraltar. Rock solid, breathtakingly honest and just a really good fella to sit and shoot the breeze with over a beer.
So I brush the voicemail and cut straight through.
“G’day mate, how’s things?”
“Mate, I’m in trouble!”
I immediately sit up because his voice is racing and clearly, he’s anxious. I’ve never heard him like this before. Ever.
“What’s wrong mate?”
“This virus is killing my business. It’s gone completely dead in ONE week and I’m starting to panic. I don’t know what to do!”
He sort of takes a breath but not really, and then he continues…
“I’ve got rent, wages, power, suppliers, insurances, and I’m screwed if this virus lasts as long as they think it will. I’ve just done some calcs and the longest I can last is three months before I run out of cash!”
Dave is gripped with fear and anxiety. But worst of all, he starts stacking one negative thought on top of another. He’s not in a good place.
Isaw a few other mates go through the same thing during the drought.
Terror is mental. It’s not physical. And that’s what we’re faced with right now regarding this virus.
But Dave’s call has shaken me because he is one of the most resilient people I know. Here’s proof:
Firstly, he gave up a cushy job and started his own business from scratch (with a young family). That takes a lot of ticker.
Secondly, in his day, he was an elite sports person. If anyone knows what pressure feels like, it’s this bloke.
So how does someone of his stature end up in a place like this so quickly?
In my opinion, I don’t think it’s a lack of strength or resilience.
Instead, I think people have their own triggers. i.e. the meaning they give to something.
You see it a lot when dealing with other people’s money. Grief is one common example of how people can change in a heartbeat.
And Dave is no different with this virus.
He vents for the next ten minutes but we need a circuit breaker. So I suggest we speak after work, out of earshot from his wife ( I don’t want her panicked by this as well, even though women can intuit when something’s wrong).
We pick up the conversation after work and I start by asking him…
“What’s the worst thing that can happen?”
And that’s when his voice begins to break. His two biggest concerns are not being able to feed his family and having to lay-off staff.
No wonder he feels awful.
So we chatted for a while about different stuff including how he could possibly ameliorate the situation at work and home and by the end of the phone call, his voice had slowed a little.
To be totally honest, I’m not sure I was much help but this is what I learnt from Dave’s call regarding COVID-19?
Of course, all this is easier said than done because right now there’s a paradox at play with this virus as well.
In recent days, we’ve been constantly warned about ‘social distancing’. Ironically, at a time when we should be getting closer to each other for support, especially when anxiety levels are sky high.
Physical distance maybe. Social distance, definitely not.
Everyone will need a Rock of Gibraltar at some stage during this virus.
It’s a Tuesday morning in March 2020. You check your super balance before breakfast. It’s down $80,000 from last week. You’re supposed to retire in four months. Your coffee goes cold on the bench. This is the scenario that terrifies every pre-retiree in Balmain. Not the abstract idea of a market crash – but the …
Continue reading “What Happens to Your Income When the Stock Market Crashes?”
You’re 52. You check your super balance: $380,000. Your stomach drops. “That’s all? After 30 years of working?” Then you remember that article you read: “You need $1 million to retire.” Quick math: You need to more than double your super in 13 years. That seems… impossible. So you do what many Australians in their …
Continue reading “Building Your Financial Herd: Investment Strategy in Your 50s”
Imagine you inherit a dairy farm with 50 healthy cows. Each cow produces milk that you can sell for income. Together, they generate enough money to live on comfortably. Now imagine someone suggests: “Why don’t you sell five cows this year to buy a new truck?” Sure, you’d get the truck. But now you only …
Continue reading “Why Your Investment ‘Cows’ Should Never Be Sold in Retirement”
Information provided by Suncow Wealth is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute formal financial advice. Remember, the value of any investment can go down as well as up. Before acting, you should consider seeking independent personal financial advice that is tailored to your needs. Suncow Wealth Pty Ltd is a Corporate Representative No.441116 of AFSL 342766.