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Old 06-21-2007, 11:32 AM   #41
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Tracking a portfolio doesn't take much time. Considering re balancing not much more. Where the time really begins is when you have an idea to check out. Then it can take some serious time to analyze and investigate. Has the question been asked before? What are its implications on my planning? Should I make any changes? What other questions should I be asking? This is the fun part. It gives one something to think about.
AN 'ah ha' moment ... there are those of you out there that think that all of this analysis stuff is fun, ... for those, it is not obsession, but a hobby, ... have at it.

For those of us who are trying to fix it and leave it alone (as much as we can), we would term this type of activity as obsessive.

My comments are aimed at those who do not think this is a hobby and have better other things to do with their time. But we are grateful to those who obsess do this, since we can glean some learning from them (while being lazy and not having to do it ourselves
(... the real reason).
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Old 06-21-2007, 12:10 PM   #42
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My problem is that I have about 35% of NW in a single stock. I obsess over it it, the rest of my index funds, bonds etc.don't matter. The really stupid part is that if I just sold it all and bought indexes FIRECALC puts my SWR at ~3.5%. No worrys. Yet I want the max from this one, check prices several times daily, ignore all other assets. Is there a 12 step program to sell it?
Set up a plan to divest most of it over the next several years. Set up some price targets or do it by percentage each year or whatever.

Waiting for the absolute max (all or nothing) will drive you nuts and is a huge risk to your financial independence. Better to take some off the table each time it reaches a new 52 week high.

Audrey
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Old 06-22-2007, 12:00 AM   #43
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While it's great to be inspired by and learn from the devoted LBYMer's here, I am equally amazed at the obsessive posters who suffer as bad as Thefed, especially the younger ones. Wouldn't you rather take the obsessing time spent on this site or starring at financials and use it instead to enjoy your current life? Start a new hobby, get better at the ones you have. Seems like it would be smart to evolve activities you are as passionate about as achieving FIRE. They don't have to delay FIRE. Fate might not allow you to be around to enjoy FIRE anyway.
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Old 06-22-2007, 08:28 AM   #44
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My problem is that I have about 35% of NW in a single stock. I obsess over it it, the rest of my index funds, bonds etc.don't matter. The really stupid part is that if I just sold it all and bought indexes FIRECALC puts my SWR at ~3.5%. No worrys. Yet I want the max from this one, check prices several times daily, ignore all other assets. Is there a 12 step program to sell it?

I had the same problem. I had 25% of my networth in Internantional Paper.I had it since it was Federal Paperboard and it just grew and grew .I also worried about it daily .I finally sold it and put it all in mutual funds and paid cash for my house .A hard decision but I'm glad I did it.
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Old 07-06-2007, 05:45 PM   #45
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While it's great to be inspired by and learn from the devoted LBYMer's here, I am equally amazed at the obsessive posters who suffer as bad as Thefed, especially the younger ones. Wouldn't you rather take the obsessing time spent on this site or starring at financials and use it instead to enjoy your current life? Start a new hobby, get better at the ones you have. Seems like it would be smart to evolve activities you are as passionate about as achieving FIRE. They don't have to delay FIRE. Fate might not allow you to be around to enjoy FIRE anyway.
I've been trting to focus more on my family and hobbies this last week...unfortunately, I think my hobbies can easily deter my ER date if I don't keep it in check. I have the 'bigger, better, and now' syndrome when it comes to these kinds of things. It started with my stereo system as a teenager, then the motor in my Camaro, then my modified 4-wheeler, then my car stereo system, etc etc


I've been focusing my energy the last few weeks on 1) my son 2) working on my relationship with fiance 3) knife collecting 4) Researching remote control cars as a hobby for me my son (this can get very expensive...especially if you build a RC car that goes 60+ mph like i want he wants) 5)Playing with fireworks...am I becoming a pyro? Very possible 6) Just a LITTLE daydreaming about not having to work...just collect checks in the mailbox

So far, its going pretty well. I think part of the reason I'm lacking the 'stress' of worrying about ET is I just landed part 1 of a 3-part job I bid on worth about $50k. Whatever works though, eh?
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Old 07-06-2007, 07:20 PM   #46
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Baby steps. Glad to hear you're on the road, sounds like you didn't have to shell out for the heavy bag or the bike flag. Good Job.

I just had a couple cool days hanging out with my wife, kids and 84 year old grandma. Also had a bunch of family at her place for the 4th, we had a great time.
I did get a demerit from grandma while watching the fireworks around her lake a homeowner on the other side let loose with an impressive barrage. She said wow that was great and I said holy crap that guy just lit two thousand dollars on fire. :?
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Old 07-06-2007, 10:27 PM   #47
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I do admit that I am focusing too much on investing and monitoring my portfolio. That's one of reason for visiting this site. FIRE says that I have enough to ER, but I am still not sure. As others suggest, develop other interests or get a hobby is a wise move.
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Old 07-15-2007, 12:13 PM   #48
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I give myself a 90% of being obsessive with my finances.

The good part is that I didn't analyzed that exact percentage before.
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Old 07-15-2007, 02:39 PM   #49
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Tracking a portfolio doesn't take much time. Considering rebalancing not much more. Where the time really begins is when you have an idea to check out. Then it can take some serious time to analyze and investigate. Has the question been asked before? What are its implications on my planning? Should I make any changes? What other questions should I be asking?
Great point. I obsessed quite a bit when I was starting out in my retirement planning, making decisions. Satisfying myself that the 4% SWR idea was really valid took a lot of checking out. And convincing myself that indexes really were better than individual stocks took a lot of analysis obsession (and some practical experience). I am glad I obsessed so much on those things because it gave me "sleep at night" power. I no longer feel the need to check my portfolio more often than every few weeks.

I am happy to have been born into a world where indexing beats active trading... I think if active trading had even a slight edge then I would probably waste untold hours chasing that edge just because I'm that kinda guy.
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Old 07-15-2007, 03:40 PM   #50
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I guess most of us who are determined to RE want to be quite sure that the numbers work for us. Clearly we are a group who doesn't just want to leave it to others, like pension funds or advisors. Finance is a complex matter and there's always more to learn. We are almost all highly informed consumers and it's easy to tip into obsessiveness when we think about another quirk, such as "but what about the tax consequences of......?" or "should RE funds be 30% dividend income or 27%?".

I'm as guilty as the next person. When retirement seemed far, far away, I was content to review the monthly statements and review the financial plan with my advisor every year. Now that RE is a viable possibility I find myself visualizing every detail, financial and otherwise. I read and research a lot, but I refuse to check the markets every day. I do the big NW spreadsheet annually and selected sensitivity analyses when the questions occur to me, e.g. "what if there were a market crash in 2010?"

I think there is a balance between taking responsiblity for your own financial future and letting it become the focus of your life, interfering with family time, etc. As they say, we need to get a life!
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Old 07-15-2007, 08:58 PM   #51
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AHA!! Another RPG fan. I adore BG. These are terrific games.
HA! And I thought nobody plays these games anymore. Icewind Dale, Baldurs Gate, great memories!

I was just cleaning my house, getting rid of old stuff and I couldn't make myself throw away old games. I was telling myself that maybe ......one day...
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Old 07-15-2007, 09:39 PM   #52
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HA! And I thought nobody plays these games anymore. Icewind Dale, Baldurs Gate, great memories!

I was just cleaning my house, getting rid of old stuff and I couldn't make myself throw away old games. I was telling myself that maybe ......one day...
KEEP THEM!!! I have been having a ball with Icewind Dale this week. They are still fun.
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Old 07-16-2007, 01:24 AM   #53
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I obsess too, but it is more of a hobby I guess. But my other hobby is similar...trying to figure out what I'm going to do with my FI when I RE...finally.
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Old 07-16-2007, 11:40 PM   #54
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When retirement seemed far, far away, I was content to review the monthly statements and review the financial plan with my advisor every year. Now that RE is a viable possibility I find myself visualizing every detail, financial and otherwise.
It's funny b/c for me it's the opposite. RE is pretty far away for me (at least 20 years), but I figure that I should put the time in now, understand as much as I can, while I can still reap the most benefits from compounding. I don't want to have to chase crazy returns when I'm in my 50's. Part of my current obesssiveness with RE planning is that I've been doing a lot of financial spring cleaning lately. I'd like to think that after I get my current situation in order, I'll be able to let go of the reins a little and not be as obsessive as I am right now. Then again, I could just be crazy.

I read an article the other day that mentioned a couple in their 50's starting to plan for retirement, and I was a little taken aback by that. I like being prepared, so there's no WAY I could wait that long to plan for retirement.
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Old 07-18-2007, 04:16 PM   #55
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My problem is that I have about 35% of NW in a single stock. I obsess over it it, the rest of my index funds, bonds etc.don't matter. The really stupid part is that if I just sold it all and bought indexes FIRECALC puts my SWR at ~3.5%. No worrys. Yet I want the max from this one, check prices several times daily, ignore all other assets. Is there a 12 step program to sell it?
With all respect: this is mere naked greed. It is not worth subjecting yourself to the stress you descibe, and risk jeopardising your hard-earned FIRE, merely to squeeze the last few unnecessary pennies out of this investment.

A classic story has an investor asking Nathan Rothschild for financial advice. The investor asked, "How did you become so wealthy?" To which Mr. Rothchild replied, "I always sold too soon". You should follow this wise counsel.

P.S. to Olav: your suggestion re hedging with a put option makes some sense, but a long-term option may not be available, and would certainly be very expensive. I think it would be better to simply begin a gradual diversification programme.
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