Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 07-26-2007, 06:04 PM   #21
Recycles dryer sheets
 
Join Date: Aug 2003
Posts: 474
Quote:
Originally Posted by tangomonster View Post
I'm more excited about . . . saving $1. . .than I'm upset about the $50,000 loss. How insane is that? If anyone could explain me to me, I'd be grateful.


Mental Accounting
__________________

__________________
bongo2 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-26-2007, 06:13 PM   #22
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,866
Even I have a time getting pepped up over the one buck but wait a minute, it does reduce your monthly expenses by $1, thus getting that 25X number all the closer.

Maybe you are an optimist, looking on the small savings rather than the big (unearned?) loss.

I'm still stuck in the retro idea the a market over 10,000 is high.
__________________

__________________
CuppaJoe is offline   Reply With Quote
Old 07-26-2007, 06:15 PM   #23
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,432
Quote:
Originally Posted by NinjaPigeon View Post
Your 5 oz shampoo bottle isn't going to be embroiled in a scandal involving a cover up by the shaving cream, thereby eroding confidence in its ability to cleanse your hair and ultimately leading to a loss of 4 of those ounces and the firing of half the ingredients!
maybe not, but (based on recent events) your 40 lb bag of dog food might suddenly
have some small chance of killing a pet, leading to a loss of all 40 lbs of dog food.
__________________
learn, work, save, invest, fire
CyclingInvestor is offline   Reply With Quote
Old 07-26-2007, 06:59 PM   #24
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Quote:
Originally Posted by Want2retire View Post
If I tried to buy today, the Dow would plunge another bazillion points right after I bought and it would stay there.
For you sake and mine, please don't buy!!!
__________________
Sam is offline   Reply With Quote
Old 07-26-2007, 07:27 PM   #25
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,860
Quote:
Originally Posted by Sam View Post
For you sake and mine, please don't buy!!!
LOL!!! Well, that is why I just have to stick to my plan to just keep DCA'ing at the same rate as I always do.

Wouldn't want to leave you guys in the lurch.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 07-26-2007, 07:50 PM   #26
Recycles dryer sheets
just_hatched's Avatar
 
Join Date: Sep 2005
Posts: 90
I've read the mental accounting paper and I have also been intrigued about the perceived value of monetary amounts.

The other day I was wondering if the perceived value could sometimes be correlated with one's net worth.

For example, what about an amount of .01% of net worth? Sounds very small. So for someone with $1 million, then this would be $100.

How much would a millionaire "care" if he or she lost $100 even if his or her portfolio fluctuated up or down by $1000 that day.

What does the perceived value of $100 mean to someone who has $1000 in the bank versus someone who has $1 million or $10 million?

For me personally, as my net worth has grown year to year, the occasional $200 car repair seems less and less impacting each year.
__________________
just_hatched is offline   Reply With Quote
Old 07-27-2007, 01:06 AM   #27
Full time employment: Posting here.
old woman's Avatar
 
Join Date: Dec 2005
Posts: 551
I lost over 8K today in my brokerage accounts but made 52 cents interest on checking. The 8K isn't real it comes and goes I can't really spend my invested money because then I would be even worse off so I didn't give up a vehicle or vacation or something because I lost money. The 52 cents a day is real in 2 days it is enough to buy something from the vending machine, it feels like something for nothing, over $15 a month I could go to MCD of course MCD went down to 48.50 today so I lost hundreds on it today but I paid 27.55 for it so I still have some profit. I like my 52 cents a day of spendable profit it cheers me up to go look to see what I got today.
__________________
old woman is offline   Reply With Quote
Old 07-27-2007, 02:16 AM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,384
Quote:
Originally Posted by tangomonster View Post
On Tuesday, my portfolio took a $50,000 hit.
How insane is that? If anyone could explain me to me, I'd be grateful.
There's gotta be some explanation.....
Easy. Denial.

Ha
__________________
haha is offline   Reply With Quote
Old 07-27-2007, 02:21 AM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,384
Quote:
Originally Posted by NinjaPigeon View Post
While the bottom isn't going to just fall out of the stock market,
Speaking as an old dummy without your confidence, how do you know this?

Ha
__________________
haha is offline   Reply With Quote
Old 07-27-2007, 03:22 AM   #30
Dryer sheet aficionado
yona's Avatar
 
Join Date: Jun 2007
Posts: 45
Down about 4% today in HK. This is about 8 months of salary.
Does it mean I am underpaid?
__________________
Many people die at twenty five and aren't buried until they are seventy five.
Benjamin Franklin
yona is offline   Reply With Quote
Old 07-27-2007, 04:00 AM   #31
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Quote:
Originally Posted by yona View Post
Down about 4% today in HK. This is about 8 months of salary.
Does it mean I am underpaid?
Underpaid relative to who?
__________________
Spanky is online now   Reply With Quote
Old 07-27-2007, 12:16 PM   #32
Full time employment: Posting here.
 
Join Date: Jun 2007
Posts: 567
Down 4% across all accounts as of last night. No major reallocation shift.. bonds are a larger relative piece of the pie now, but not enough to want me to rebalance yet.

Basically, so far we've only wiped out half of our earnings for the year.
__________________
Webzter is offline   Reply With Quote
Old 07-27-2007, 01:46 PM   #33
Dryer sheet aficionado
 
Join Date: Jul 2007
Posts: 47
Perhaps you felt the Netflx change was unjustified and not part of what you'd expect when you signed the contract. But the stock market fluctuation was expected if you are in it long enough.
After yesterday's stock plunge, I felt a little foolish about fretting over a $10 rebate the night before.
Have to keep reminding myself, I am still way ahead YTD.
__________________
me_no_boss is offline   Reply With Quote
Old 07-27-2007, 05:44 PM   #34
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 329
Quote:
Originally Posted by haha View Post
Speaking as an old dummy without your confidence, how do you know this?

Ha
Nobody knows if it's true. But if it does happen, does it matter? It's like worrying about death. If it happens, there's not a thing you can do about it but hop in the soup line with the other former millionaires
__________________
NinjaPigeon is offline   Reply With Quote
Old 07-27-2007, 06:04 PM   #35
Thinks s/he gets paid by the post
 
Join Date: Aug 2002
Posts: 1,322
I've got ten years of cash assets, so this week is a nonevent for me.
__________________
FinallyRetired is offline   Reply With Quote
Old 07-27-2007, 07:40 PM   #36
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Quote:
Originally Posted by me_no_boss View Post
I am still way ahead YTD.
I'm way ahead LTD.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 07-28-2007, 11:43 AM   #37
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,072
You could save another $16.99 and use the library for your DVDs - that would save you ~$200/yr which could reduce your required portfolio by $5K :-) Just practicing my math.....
__________________
Deserat aka Bridget
“We sleep soundly in our beds because rough men stand ready in the night to visit violence on those who would do us harm.” - George Orwell/Winston Churchill
deserat is offline   Reply With Quote
Old 07-28-2007, 01:03 PM   #38
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Your math is fine, but your assumption could be off. What if the OP's swr is only 2%? ;-)
__________________
Sam is offline   Reply With Quote
Old 07-28-2007, 03:24 PM   #39
Full time employment: Posting here.
tangomonster's Avatar
 
Join Date: Mar 2006
Posts: 756
May I retract this post? The first $50,000 on one day didn't faze me, but $120,000 over three days does!

Bongo, the mental accounting link was interesting. Fascinating how we play mind games with money.
__________________
“It is not a sign of good health to be well adjusted to a sick society”.------Krishnamurti
tangomonster is offline   Reply With Quote
Old 07-28-2007, 04:10 PM   #40
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,384
Quote:
Originally Posted by tangomonster View Post
May I retract this post? The first $50,000 on one day didn't faze me, but $120,000 over three days does!


Obviously you are quite well off, or you have heavily invested in calls. If a 5% fallback costs you $120,000, 20% would cost $480,000. So if you are experiencing run of the market results, you have an equity portfolio of $2.5 million or so. If you have another million in fixed income, or a good pension you are still in very good shape.

But if you don't have a pension, and you are fully invested in equities, I hope you will keep posting your reactions if stocks should continue down from here.

Personally, I have no clue what might happen. But I know that I would notice going from $2 1/2 mm down to $2mm. And of course if that should happen there is no way to know or to have confidence that the bottom will have been reached.

I have observed much greater drawdowns in the years that I have been investing.

Good luck and good management to you!

Ha
__________________

__________________
haha is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
I just got an opportunity to bid on a $50,000 job!!! Air duct cleaning thefed Other topics 10 06-20-2007 01:36 AM
Help me design a portfolio that generates $50,000 a year BD1 FIRE and Money 58 05-29-2006 05:53 PM
What am I not seeing here? larry Other topics 9 05-06-2006 08:24 PM

 

 
All times are GMT -6. The time now is 12:19 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.