“My portfolio just dropped 15%, and now I’m scared to ever invest again.”
Sound familiar?
This was the cry for help I received from a 45-year-old reader who finally took the plunge into the stock market—only to feel like it had swallowed his savings whole.
He had invested €50,000—much of which came from his emergency fund—into an S&P 500 index fund after hearing glowing recommendations from friends and influencers. And for a few weeks, it seemed like a winning move.
Until it wasn’t.
Now, he’s down 15%, feeling anxious, checking his investment app several times a day, and facing conflict at home with his wife, who warned him against it in the first place.
Let’s be honest—this story could belong to any one of us.
First of All… You’re Not Alone
As an investment coach, I’ve seen this situation more times than I can count. It often starts with fear. Then hesitation. Then a sudden, bold decision. Followed by panic when things don’t go as expected.
There’s a term for this: FOMO—fear of missing out. After years of watching others grow their portfolios, many people jump in all at once to “catch up.” But investing isn’t about catching up. It’s about staying consistent, clear-headed, and aligned with your financial goals—not with market noise.
The Real Deal with the S&P 500
Let’s break this down for the sake of all beginner investors reading this.
The S&P 500 is a stock market index tracking the performance of the 500 largest companies in the US. Over the last 90 years, it’s averaged annual returns of 8-10%.
But here’s the catch: that’s an average.
Some years, it dropped by 20%… even 40%.
So yes, it goes up over time—but it doesn’t go up all the time.
How Investment Coaching Could Have Helped
This is exactly where investment coaching plays a critical role.
Investment coaching isn’t about telling you what to buy or sell. It’s about helping you:
- Understand your risk tolerance
- Build the right mindset for investing
- Set realistic expectations
- Avoid emotional decisions
- Create a strategy you can actually stick to
Had this reader worked with a coach, the advice would have been clear: Never use your emergency fund for investing. That money is meant to keep you safe during unexpected situations—not be exposed to stock market swings.
Practical Lessons to Take With You
Whether you’re already in the market or just considering it, here are some important takeaways:
1. Never invest your emergency fund
Your emergency fund is your safety net. Once you dip into it for investing, you’re putting your financial resilience at risk.
2. Avoid going “all in” at once
Instead of investing a large lump sum, consider dollar-cost averaging. This means spreading your investment over time, which reduces the risk of bad timing.
3. Get educated
Following TikTok influencers or dinner party chatter isn’t the same as understanding what you’re doing. Read books. Take a course. Work with a financial coach.
4. Seek professional advice—but prepare first
Before you sit with an investment advisor, make sure you understand the basics. This will empower you to ask the right questions, assess the advice, and stay in control of your money.
5. Check the fees
A 1% annual fee might sound small, but it compounds over time. Know what you’re paying for—and why.
You Don’t Have to Figure It Out Alone
If you’re in this reader’s position—feeling regret, fear, and panic—know that it’s normal. But also know that you can grow from this.
Investment coaching exists to turn emotional, confusing experiences like this one into valuable life lessons.
You can become a confident investor. You can rebuild trust in your decisions. And you can learn to align your financial actions with your long-term goals, rather than short-term fear.
Let’s Talk
Would you like help making sense of your investment journey and finding a strategy that feels right for you?
Book a free 30-minute investment coaching call with me and get clarity, confidence, and a plan that works with your values and lifestyle.
👉 Book your free session
———————— About the Author: Luca Caruana
Hi, I’m Luca, a Certified Money Coach, dedicated to helping individuals break free from limiting beliefs and build lasting wealth.
My proven strategies empower clients to break free from financial constraints and confidently navigate the world of money—whether it’s managing budgets, making savvy investments, or pursuing new financial opportunities.
With over a decade of hands-on experience in personal finance and mindset coaching, I’ve guided countless clients through the process of transforming their financial narratives. My approach combines deep psychological insights with practical financial tactics, ensuring that each client not only learns how to manage money effectively but also develops the mindset necessary to truly thrive. I’ve seen firsthand how a positive money mindset can be the game-changer that propels you toward financial freedom and a more fulfilling life.
Let me show you how to harness the power of your beliefs to create a future filled with opportunity and prosperity. Let’s talk and start transforming your financial future today.