Anyone else want to join the "Lost over a million" club?

[EvanC]

Thanks OOPS I'll go back to stalking

[rodi]

Quote:

Originally Posted by EvanC Thanks OOPS I'll go back to stalking

No - join in!!!! Consider posting in the "Hi I am" subforum with an intro.

We're nice... Honest!

[Big_Hitter]

Quote:

Originally Posted by EvanC All I ask is, you be kind;-)

you bet!

yes this was an old thread from 2008

[W2R]

Did I lose over a million?

To illustrate, here's a crude graph of my monthly portfolio values in dollars from my retirement in 2009 until now. That BIG plunge in 2015 was due to buying my dream house in cash, and the recovery soon after was due to selling my prior home.

Compared with that, the recent drop is small potatoes. Overall, it still looks pretty good and the past 6+ years have prepared me pretty well for whatever may happen.

And NO, the answer is that I am NOT a member of the "Lost over a million club" or anywhere near. I am content with what I have, but it's not enough for a little blip like that to represent a million dollars.

[NW-Bound]

It is not a $1M loss that one minds so much. It's the $1M loss daily, day in day out, that adds up to real money after a while.

No, I am not talking about myself, but I am sure there are a lot of people out there that the above applies to. And they do not have to be in the same league as Buffett and Bill Gates either, and only have to be a centimillionaire.

Quote:

Originally Posted by shasta Most IV lost in a dip is 400k

I have lost more than that, and more than once, but never a $1M, thank goodness.

[jim584672]

If I had $10,000,000 I wouldn't take much risk. Some 10 year Treasuries for me.

[Car-Guy]

Technically, yes I have lost over 1m, but not in the stock market. However, I don't want to join the club since I can't afford the membership dues.

[ejman]

Well, according to Quicken in reference to my portfolio, I've lost 5.5% since my particular peak in March of 2015 to now. So, to loose $1 million I would have to have started with a little over $18 million back then. I'm very sorry to report that I do not qualify...

[Jerry1]

I can't imagine what it's like to have enough money to lose over $1M but I suspect that losing 10% or 50% of your wealth is about the same at any level. Sure, someone with that level of wealth may not be worried about where the next meal is coming from, but I imagine that they've geared their life to having the level of income that that level of wealth generates and when you get hit with a large market drop, I suspect it affects your life significantly.

[NW-Bound]

One does not need $10M to lose $1M. He can have just $1M, but put in all on Global Crossing or Nortel in 2000, then lost it all.

Or he could put it all on a company like Peabody Energy or Chesapeake Energy. He would have lost 99% in the case of the 1st, or 90% in the case of the 2nd company.

[W2R]

Quote:

Originally Posted by NW-Bound One does not need $10M to lose $1M. He can have just $1M, but put in all on Global Crossing or Nortel in 2000, then lost it all. Or he could put it all on a company like Peabody Energy or Chesapeake Energy. He would have lost 99% in the case of the 1st, or 90% in the case of the 2nd company.

True, it does help to diversify.

[Katiek]

Quote:

Originally Posted by EvanC Thanks OOPS I'll go back to stalking

I hope you'll continue to post! Lots of friendly, helpful people here, and we can always benefit from new posters and new input!

[papadad111]

Quote:

Originally Posted by Jerry1 I can't imagine what it's like to have enough money to lose over $1M ....

Math:

Someone with a net worth of around $1.8M and fully invested in, say SP500 index funds in their 401k would have easily lost $1M during the six month market decline in 2007-2008.... Ie during the decline from 2007 market high of 1575 down to 666 at the "Haines" market bottom of March 2009.

Losing 1M in a day: again Presuming you were in broad market stocks and not a specific loser that went to zero, you saw a 20 percent haircut on Oct 19 of 1987.

Nearest after that was a 9 percent haircut on October 15 2008. So you would need a nut of over 10 million to do that in a day again if you were broad market SP500 equity based..

If you were weighted toward financials say holding bear stern and Lehman and countrywide etc you may have lost it all.

[rayinpenn]

I've lost at times, more money then I ever dreamed at having. After so many up and downs Ive learned not sweat the dips. The pile is was never the primary focus rather the result of LBYM and marrying the right gal. It built up slowly - kinda like autopilot - you've heard that phrase 'pay yourself first' my saving were always automatic. I didn't worry about its growth, I knew it would grow and I was too busy living. I grew and before I knew it was more then enough.

I've learned to focus on the income stream which has been more consistent. The market is a fickle beast -watching it each day and worrying isn't good for the soul.

I buy dividend stocks, ETFs and mutual funds - steady eddies if you will. Certainly not high flyers and likely kinda boring for most people. Even after all these years I still enjoy seeing the dividends accumulate.


Sent from my iPad using Early Retirement Forum.

[Major Tom]

Quote:

Originally Posted by jim584672 If I had $10,000,000 I wouldn't take much risk. Some 10 year Treasuries for me.

I suspect that if I came into $10 million slowly, over the course of a career, and was used to a solidly middle class lifestyle, I'd have the usual mix of stocks and bonds. However, if I came into it suddenly, I'd put it all into equity funds. My current annual spend is ~$17K, so the dividends alone from $10 million worth of equity index funds would allow for a generous increase in my material standard of living with effectively no risk of loss of income. A 50% portfolio drop wouldn't concern me, as I'd still be able to live comfortably from dividends alone.

However, for someone who is used to a higher standard of living than the likes of $20K/yr can provide, I can well understand a more conservative approach.

[Andre1969]

I didn't realize at first that this was an old thread that was resurrected, so my first thought was damn, some of you guys and gals are well off, if you've had enough stashed away to lose $1M in this latest rough patch!

I just ran my numbers last night, and was pleasantly surprised...so far this year I'm only down about 4.6%. At one point, I think it was in excess of 10%.

Back during that 2008 tumble, I did lose about $230K+from peak to trough. I topped out at around $422K in October 2007, and was down to $210K when I hit bottom in November 2008. I know that's only a $212K drop, but I was adding money during that downfall.

[kcowan]

I am down a Ferrari since the 2015 peak.

[NW-Bound]

I am down quite a bit from my personal high-water mark, but that was set back in July 2014.

Then, I figured out how much I have spent since then, and the real loss was not so bad. It's only 10% or so.

[fritz]

Quote:

Originally Posted by rayinpenn I've lost at times, more money then I ever dreamed at having. After so many up and downs Ive learned not sweat the dips. The pile is was never the primary focus rather the result of LBYM and marrying the right gal. It built up slowly - kinda like autopilot - you've heard that phrase 'pay yourself first' my saving were always automatic. I didn't worry about its growth, I knew it would grow and I was too busy living. I grew and before I knew it was more then enough. I've learned to focus on the income stream which has been more consistent. The market is a fickle beast -watching it each day and worrying isn't good for the soul. I buy dividend stocks, ETFs and mutual funds - steady eddies if you will. Certainly not high flyers and likely kinda boring for most people. Even after all these years I still enjoy seeing the dividends accumulate. Sent from my iPad using Early Retirement Forum.

+1 LBYM has served us well during the accumulation phase of our lives. It always amazes me when I look at our lifetime's accumulation of net worth (more than we ever imagined), and the amounts it has risen and fallen even in a day. Retired 6 years now (RE 58) and focus is on the income stream as well (draw dividends for income off taxable accounts). Keep a 52/48 stock/bond mix with mutual funds, and take a monthly PDF of it's performance (old habit).

[haha]

Quote:

Originally Posted by NW-Bound I am down quite a bit from my personal high-water mark, but that was set back in July 2014. Then, I figured out how much I have spent since then, and the real loss was not so bad. It's only 10% or so.

Sounds like someone either had a lot of EM equity, or oil and gas investments.

Ha