For generations who grew up in Memphis from the 1920’s through the early 2000’s, a staple of excitement was the Zippin Pippin roller coaster. This wooden monstrosity was originally located at East End Park, then moved to the Mid-South Fairgrounds, which later became Libertyland. Made of pine, the Pippin would be considered tame by today’s standards for amusement park rides. Dubbed Elvis’ favorite ride, this rattletrap would shake you ‘til your fillings fell out, especially if you were seated in one of the last two seats.
This week I have been reminded of how the journey of financial investing is often like an old wooden roller coaster. It can be both exhilarating and scary. To begin, a long ride to the top of a hill is necessary. Once there, the kinetic energy produced from that first plunge is what creates the momentum needed to keep the train moving through the ups and downs that make up the rest of the ride. As we shaked, rattled, and rolled down the Pippen’s track, some riders raised their arms and let out shrieks of adrenaline-charged joy, while others gripped the safety bar with white knuckles and screamed in terror. When the experience was over and the train slowly approached the station, a voice spoke reminding riders, “Do not exit until the ride has come to a complete stop!”.
I clearly remember the first time I rode the Zippin Pippin, probably around age six or seven. I was nervous, but others who had been on the ride before assured me in the end it would be worth it. They were right!
I also clearly remember the first serious financial investment in the market my wife and I made. It was in the early 2000’s when we went to a broker in Jackson, TN who was a member of the church I was appointed to at the time. He was well-known and trustworthy. Our family was very young. Our two boys were both less than five years old. We opened two 529 college savings accounts, putting $15,000 in each, hoping they would earn enough to provide the resources for most or all of their college educations.
We were crusin’ along and enjoying the ride as we watched the funds grow and grow. Then 2008 hit. I had never experienced such a drop. I was suddenly very nervous, almost panicked, when I saw nearly four years of growth evaporate almost overnight. My emotions were all over the place when I called to schedule a time my wife and I could meet with our broker. When we did meet, we told him we were very nervous about what was happening and had started to wonder if we had made the right decision putting our son’s college futures in jeopardy by what I described as “gambling in the market”. Our broker gave me a furrowed look after I used that phrase, almost like he was offended. With respectful, focused words he said, “David, we don’t gamble”.
He showed us a twenty-year performance track of the funds where our 529’s had been invested. It looked somewhat like a roller coaster, but with long, sustained growth, and a few drops here and there. Yes, the loss we experienced was dramatic, unexpected, and by comparison quite extreme compared to any other losses in the past 20 years. He reminded us that this is the nature of market investing. Staying the course requires discipline, patience, and not overreacting when you take a loss. There is time for rebounding and recovering…and he was right. By the time our oldest had graduated in 2017 his 529 was robust and ready to provide practically all we needed for his college years.
Faith is a spiritual state, not a financial one. But we do invest a great deal in a life of faith and rarely are we able to control the outcome. By God’s generosity of goodness, we should know that as we journey, we will absolutely be blessed more than we are stressed. Does that mean we will not have some down years or will avoid enduring losses? No, but the test of faith is often staying on the ride through the ups and downs.
We at the Foundation & Development Fund for the Tennessee-Western Kentucky Conference are grateful for your faithfulness. Your ongoing engagement and commitment help offer assurance and stability when a bigger drop than might be expected causes some nervous riders to feel like they might want to exit the ride before it is over.
Investing is not a gamble, it is believing in the strength and goodness of something, despite the risks that in the end by what we will have learned and through our persistence, we will have received more blessings than we had when we started. In faith and in life, all good gifts come from God. May we remain faithful!
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