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Let me get even and then......(rant)
Old 01-22-2008, 09:56 AM   #1
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Let me get even and then......(rant)

I'll sell it ALL!!!....after my 36% losses since my (supposed) FIRE (May 2007)...... my current frame of mind is to SELL IT ALL and watch my CD's grow at least while I AM still FI ! ....maybe I'll wait 'til I get back to even....but then, if I can wait THAT long.....hmmmm......maybe I should buy more with my cash reserves, then I can make it up faster ....OMG, I surely don't want to MISS THAT!! ....but THEN how will I pay my bills IF the market continues the decline .......Oh why ME Lord?....why did I have to end those beautiful days at the office when the financial world as we know it is about to end!!

Man....when I was a workin' stiff, none of this seemed to matter......now my TV can't seem to get off of CNBC...Ok, so some of that has to do with my affinity for Erin Burnett.....

So what has changed?.....I think that MY perception of the market has been influenced by the media....'cause, I STILL have the same number of shares of ABC & XYZ, right?.... and although the rest of the world seems to think they are worth less - 36% less than I think they are.....whew....I only wish I could make myself LOOK AWAY!!

OK....so I'm not REALLY there (yet!), but I'm beginning to understand the older generation's desire and need to alleviate their fears by NOT participating in the market at all......no wonder they can sell folks an annuity with guaranteed payouts....you gotta admit that they sure look good during periods like this one!
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Old 01-22-2008, 10:20 AM   #2
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Dude, you're freaking out.........You haven't lost any money until you sell, so don't sell and just try to adjust your expenses down as much as you can.

Of course I could be wrong, and it could be the end of the world!
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Old 01-22-2008, 10:24 AM   #3
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Since 10/9/2002, the Dow is STILL up 64.7%..............
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Old 01-22-2008, 10:47 AM   #4
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Don't feel to bad VAC, the CD market is sucking at the moment also with that 3/4 rate point cut................

/finger at the fed
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Old 01-22-2008, 11:50 AM   #5
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I'll sell it ALL!!!........ I'm beginning to understand the older generation's desire and need to alleviate their fears by NOT participating in the market at all......no wonder they can sell folks an annuity with guaranteed payouts....you gotta admit that they sure look good during periods like this one!
All you need to do is augment your income during down markets - them older folks had their ways: Offbeat Jobs From The 30's And 40's : DivineCaroline
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Old 01-22-2008, 12:25 PM   #6
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[quote=cardude;604470]Dude, you're freaking out.........You haven't lost any money until you sell, so don't sell and just try to adjust your expenses down as much as you can.
quote]


I wonder why rational people think this way.... but then again I guess it is to make them feel better...

The guy is down... you are probably down... I am DOWN... we have LOST no matter if we sell or not.. it is 'gone'... NOW, I am hanging on in the belief that I will GAIN it back again (and hopefully more)... but a loss is a loss is a loss....

To the OP.. just don't freak... all will be OK 'in the long run'....
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Old 01-22-2008, 12:28 PM   #7
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Originally Posted by VaCollector View Post
I'll sell it ALL!!!....after my 36% losses since my (supposed) FIRE (May 2007)...... my current frame of mind is to SELL IT ALL and watch my CD's grow at least while I AM still FI ! ....maybe I'll wait 'til I get back to even....but then, if I can wait THAT long.....hmmmm......maybe I should buy more with my cash reserves, then I can make it up faster ....OMG, I surely don't want to MISS THAT!! ....but THEN how will I pay my bills IF the market continues the decline .......Oh why ME Lord?....why did I have to end those beautiful days at the office when the financial world as we know it is about to end!!

Man....when I was a workin' stiff, none of this seemed to matter......now my TV can't seem to get off of CNBC...Ok, so some of that has to do with my affinity for Erin Burnett.....

So what has changed?.....I think that MY perception of the market has been influenced by the media....'cause, I STILL have the same number of shares of ABC & XYZ, right?.... and although the rest of the world seems to think they are worth less - 36% less than I think they are.....whew....I only wish I could make myself LOOK AWAY!!

OK....so I'm not REALLY there (yet!), but I'm beginning to understand the older generation's desire and need to alleviate their fears by NOT participating in the market at all......no wonder they can sell folks an annuity with guaranteed payouts....you gotta admit that they sure look good during periods like this one!
Shut off CNBC, there's plenty of pretty women to look at on other channels..........
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Old 01-22-2008, 12:34 PM   #8
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. but a loss is a loss is a loss.....
Well, try to deduct it on your taxes then. I'm sure the IRS will empathize with an unrealized loss.
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Old 01-22-2008, 12:35 PM   #9
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I'll sell it ALL!!!....after my 36% losses since my (supposed) FIRE (May 2007)...... my current frame of mind is to SELL IT ALL and watch my CD's grow at least while I AM still FI
If you lost 36% since May, you are into some pretty risky stuff. I'd recommend that you go over to the boglehead forum and ask the members there for a review of your asset allocation.
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Old 01-22-2008, 12:36 PM   #10
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All you need to do is augment your income during down markets - them older folks had their ways: Offbeat Jobs From The 30's And 40's : DivineCaroline

I call dibs on the rabbit farm!! I can't wait to see all the joy on peoples faces when they receive their pet rabbit! Kind of a silver lining..err rabbit fur lining.
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Old 01-22-2008, 01:36 PM   #11
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yeah, my rentals are off about 20% from the peak ... now it looks like stocks are heading there too (S&P down +15% from the peak).

Misery likes company.
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Old 01-22-2008, 01:38 PM   #12
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If you lost 36% since May, you are into some pretty risky stuff. I'd recommend that you go over to the boglehead forum and ask the members there for a review of your asset allocation.
Only one way to answer that one....DUH
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Old 01-22-2008, 01:47 PM   #13
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The first two years of ER I was down around 30%. Fortunately I had a conservative allocation which limited the damage. I ended up increasing my stock allocation in 2002 which turned out to be very lucky timing.
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Old 01-22-2008, 02:23 PM   #14
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Only one way to answer that one....DUH
That was rude. How did someone so smart get into such a sad situation?
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Old 01-22-2008, 02:32 PM   #15
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That was rude. How did someone so smart get into such a sad situation?
Wasn't being rude...thought I was being funny....but then if I've learned anything on this forum, it is that some folks here don't have very thick skin!!

To answer your question, inheritance (bank stock).
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Old 01-22-2008, 02:38 PM   #16
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Wasn't being rude...thought I was being funny....but then if I've learned anything on this forum, it is that some folks here don't have very thick skin!!

To answer your question, inheritance (bank stock).

So Va since you inherited it you probably saved a crap load on capital gains so you are probably up 36% .Think of the positive !
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Old 01-22-2008, 02:43 PM   #17
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Maybe the ER plan of the OP was built with toothpicks and toilet paper instead of bricks and morter.
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Old 01-22-2008, 03:06 PM   #18
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....but THEN how will I pay my bills IF the market continues the decline?
I know you are being expressive here, but if this is actually an issue you need to take action to reduce market exposure. No matter what anyone says, in the media or on this board, the markets can certainly continue down, and down, and down. This is not a prediction, just a statement of simple fact.
Quote:
So what has changed?.....I think that MY perception of the market has been influenced by the media....'cause, I STILL have the same number of shares of ABC & XYZ, right?.... and although the rest of the world seems to think they are worth less - 36% less than I think they are.....
You are correct, what has changed is your perception and also the perception of a significant number of market participants. But their perception was creating the value estimate that you made when you invested 36% ago, just as it is now creating the current lower estimate of value. Unless you are investing in securities with current cash return (non market dependent) sufficient for your spending needs, all you have is perception standing between you and trouble.
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... I'm beginning to understand the older generation's desire and need to alleviate their fears by NOT participating in the market at all......no wonder they can sell folks an annuity with guaranteed payouts....you gotta admit that they sure look good during periods like this one!
When a whole lot more people adopt that attitude then it will be safe to ratchet up risk a bit.

Ha
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Old 01-22-2008, 03:51 PM   #19
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So Va since you inherited it you probably saved a crap load on capital gains so you are probably up 36% .Think of the positive !
Sometimes it's hard to sell inherited stock. I have a number of clients that inherited GE stock or Ma Bell stock from a parent.

Even though it doesn't fit their portfolio, they don't want to sell it because "dad owned it, and he worked there 40 years"...........etc.

However, I have had success encouraging them to sell half, and diversify away...........
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Old 01-22-2008, 03:54 PM   #20
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Well, try to deduct it on your taxes then. I'm sure the IRS will empathize with an unrealized loss.
Hmmm.. so just because you can not deduct it on your tax return it is not a loss

So, if I bought a house for $1 mill.. and today I could not sell it for $500,000... I do not have a loss?

And if I DID sell it for $500,000... well, guess what, I can not deduct it on my taxes either... so I still do not have a loss?

Just trying to clairify...
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