leaving the magic intact

This morning, my kids saw a foot of snow outside blanketing everything in sight – and promptly began shouting and celebrating like Italian soccer fans.

They’ve not a clue how much work will be involved for their parents…shoveling, making sure there’s a path for the mail carrier without any ice, clearing the driveway so the cars can get in and out, salting, etc.

Why would we point this out to them?

The old man folded his arms across his chest, beaming with pride as he explained why his house was the best investment ever made. “Forty thousand dollars I paid for that house!”

Should I bother running the inflation-adjusted calculations which would surely reveal that his once-upon-a-time $40,000 would have been worth much more today than what his house actually is? Should I remind him about the renovations and repairs he’s also spent money on over the years in addition to the original $40,000?

Why would I point this out to him? Maybe it isn’t the dollar-value appreciation he’s referring to, anyway. Perhaps it’s that early investment he made in his home that allowed for his whole life to unfold subsequently – jobs, cars, marital give-and-take and sex, children, birthday parties, stormy nights with board games and without power, packing for camp, packing for college, retirement, grandchildren. Who am I to attach numbers to this?

“You can sell all of these funds except for this one,” she said. “I mean it, Josh, no matter what. This one has to stay.”

Okay, no problem, we can sidecar it into a separate account that never gets touched. But just out of curiosity, why that fund?

“It’s done so well for me over the years, I’ve just never sold no matter what and it always come back every time the market has dropped…”

I can see that, I’m looking at the chart. Morningstar says it has a 94% correlation to the Wilshire 5000, meaning it’s basically a giant index fund that owns everything and does what the market does. Sometimes it does a little better, sometimes a little worse – but the internal expenses you’re paying the fund family eat away any performance edge each year, no matter what.

“I don’t care – just don’t ever sell it.”

This is how uptrends are formed – an investment (think Apple, Gold) treats so many people so well for so long that it becomes difficult for any of us to part with it. I know both “don’t ever sell my Apple” people and “don’t ever sell my gold” people. We don’t fight about it, I don’t engage on the topic.

There’s a museum in Petersburg, Kentucky with Biblical setpieces serving as “educational exhibits.”  Parents and schoolteachers willingly bring their children there and allow the museum to teach them magic as though it were science, folklore as history. There’s one exhibit with Adam and Eve standing in the Garden of Eden next to dinosaurs. The dinosaurs have saddles on them – and they are western saddles, like from a cowboy movie.

creationist

The museum’s founder spent $27 million of his own fortune to build it. When visitors to the museum arrive, he will very eruditely explain how there were dinosaurs on Noah’s Ark but that these particular dinosaurs were vegetarians. That’s why the sheep were not devoured by a T Rex during the voyage. There is a Men In Black-style welcoming video wherein two angels – called “Men In White” – tell us that we don’t have to accept what those pesky, non-believer scientists say.

If this is what the visiting parents want their children to be taught, then it is not for the rest of us to intervene. It is not our responsibility to draw the linear path from an education like this to a future in which task-accomplishing robots replace them on automobile assembly lines.

I’m not the type to walk around Disneyland pulling the heads off of Winnie and Goofy and Tigger and Buzz in front of the kids. I don’t need to disrupt the spell or shatter every illusion for the sake of my own satisfaction.

Sometimes people need the magic, I am certain I myself entertain various types of magical thinking as I go about my own life. I’m certainly not aware of it, but I suppose my mind has decided I need that bit of creativity, that dollop of denial, to keep everything else held together.

It’s fine, I can work around these things. For the sake of those around me, I can leave their magic intact.

Now if you’ll excuse me, I’ll be shoveling a foot of wondrous, enchanted snow with the kids as my special helpers, my lips are sealed.

 

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. w88 commented on Sep 22

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]

  2. bitcoin registrarse chile commented on Sep 30

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]

  3. bitcoin evolution commented on Sep 30

    … [Trackback]

    […] There you can find 43511 additional Information on that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]

  4. https://immediate-edges.com commented on Oct 04

    … [Trackback]

    […] Here you will find 62750 more Info on that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]

  5. maha pharma europe commented on Oct 08

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]

  6. fun88 commented on Oct 13

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]

  7. 토토사이트 commented on Oct 16

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]

  8. Vape juice commented on Oct 29

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]

  9. dumps shop commented on Oct 31

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]

  10. 사설토토 commented on Dec 13

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]

  11. Order Amoxicillin online commented on Dec 25

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]

  12. rolex replica commented on Dec 29

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]

  13. buy shrimps online commented on Dec 30

    … [Trackback]

    […] There you can find 27006 more Information on that Topic: thereformedbroker.com/2013/02/09/leaving-the-magic-intact/ […]