Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-06-2006, 08:18 PM   #1
Full time employment: Posting here.
 
Join Date: Dec 2004
Posts: 714
Did Your Interest in Investing / Saving Increase with Your Net Worth?

My wife and I were discussing this evening how I (in particular) now take a much greater interest in investing / saving. I'm sure some of that is seeing myself age, and recognizing some tough realities of life.

But I also think it has something to do with having enough set aside now to see real progress.

My first investing foray started in late 1987, and I saw my account dealt a hard blow by 10/19/87. Ironically, I 'saw' the crash coming, and bailed out very early in the morning of 10/19 ... after which I got a hard lesson in the fact that mutual funds close out at the end of the trading day ... not when I "sold". Scarred me for years, really. Obviously I'd have been much better off to just hang in there ... hindsight is certainly 20/20.

So, just wondering if it took others a little while to finally see some real savings progress, and when you did, was that a further impetus to help keep you going?

Thanks.
__________________

__________________
Craig 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!

Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-06-2006, 09:16 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,408
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

Actually - I'm the exact opposite - never made real progress until I ignored my investments. Ironically it took over twenty years to figure out - dumb is better than smart (I was a legend in my own mind) - time in the market and that damn Bogle -- costs matter, hurry up just stand there.

The 1987 'crash' if you can call it that was my last act of brilliance - wiped out every fixed income investment, any loose cash, and all fixed reserves - (mortgaged the farm so to speak) went 100% stock. ??

Balanced index, low expenses, dollar cost average and time in the market.

History was kind also - even with the relatively flat DOW from 1966-1982.

I like dumb.

heh heh heh heh
__________________

__________________
unclemick is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-06-2006, 09:35 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

Since my first job I have always been interested in saving and investing. As I got older, my interest neither waned nor increased ... until the year I made more investing than through my W2 income. From that point on, I figured I should devote some time to investing since it was more important to increasing my net worth than my job. Whether that was a good move or not, is still open to debate.

As I get close to pulling the trigger on retirement, I am unfortunately obsessively interested in my investments. I try to convince myself that it's important because they will be my sole source of income for a while. That is, managing investments is just another job. Sigh!
__________________
LOL! is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-06-2006, 09:54 PM   #4
Thinks s/he gets paid by the post
Helen's Avatar
 
Join Date: Oct 2004
Location: Portland
Posts: 1,343
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

Quote:
Originally Posted by Charles

So, just wondering if it took others a little while to finally see some real savings progress, and when you did, was that a further impetus to help keep you going?

Thanks.
My motivation to save came when my Father was in his late 80's.* He was starting to feel that his memory was slipping.* He asked me to educate myself in finance to help my Mother manage the investments.* I panicked.* I didn't know the first thing about investments.* So, I decided that I'd better learn and play with my own money before tackling their investments.

He past away a few years ago and the funny thing is that he had everything set up in trust funds (which I still don't understand).* I have had to do nothing to help my Mother out.

In the meantime, I am now set to have $1 million in stocks and bonds at the age of 56.* I will also have a pension as will my partner, plus something from social security.* We will both also have medical benefits.

The biggest motivation I have is my spreadsheet.* I have it calculated for the next seven years as to how much and which account to increment my savings.* We roughly bump our savings up by $2k per year for the next seven years.* My spreadsheet shows where the increment is deposited and projects the flat line savings as well as the savings with a 5% return.

I just past the milestone of paying off the mortgage.* I can't wait until we hit the point where our investments are higher than our incomes.

Now you have me thinking that I need to project my earnings exceeding my income on to my spreadsheet.* It's probably there, I just haven't looked for it.

-helen
__________________
Helen is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-07-2006, 07:39 AM   #5
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

Quote:
I just past the milestone of paying off the mortgage. I can't wait until we hit the point where our investments are higher than our incomes.
We still have about $8,000 left in the mortgage. Our return of the portfolio has been higher than our income (from work - may be we should get a higher paying job ) for the last 5 years.

We cannot call it quit yet since we still have two daughters for college support.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is online now   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-07-2006, 07:46 AM   #6
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

Quote:
I figured I should devote some time to investing since it was more important to increasing my net worth than my job. Whether that was a good move or not, is still open to debate.
I think your ROI (return on investment) of spending time on investment is much better than that of working overtime or devoting extra efforts toward career development in hopes of getting more pay.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is online now   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-07-2006, 08:22 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,056
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

I just crunched some numbers, and found that through interest/dividends/appreciation/etc, my portfolio went up around $40,000 last year. And that's NOT counting any additional contributions. Damn!!

No wonder I'm not so pressed about pulling overtime anymore! FWIW, after taxes and everything else they pull out, I figure each hour of overtime nets me under $13.00.

Now I have to admit, 2005 was a good year for me, and I'm not holding my breath for 2006 to be better...just don't want to get my hopes up too high. But I could be getting to the point soon where my portfolio makes more money than I do! Heck, last year it already made more than I bring home after taxes! I believe that's a first for me. I dunno if I'm ready to start singing the theme song to "The Jeffersons" just yet, though.
__________________
Andre1969 is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-07-2006, 09:11 AM   #8
Thinks s/he gets paid by the post
Helen's Avatar
 
Join Date: Oct 2004
Location: Portland
Posts: 1,343
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

Quote:
Originally Posted by Andre1969
I just crunched some numbers, and found that through interest/dividends/appreciation/etc, my portfolio went up around $40,000 last year.* And that's NOT counting any additional contributions.* *Damn!!*
Wow, what a feeling that has to be !!!!
__________________
Helen is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-07-2006, 12:22 PM   #9
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

My motivation was suddenly being a single (divorced) father with a young teenager to raise and educate. All I had was some monster CC debts, no savings, no investments and a seriously negative net worth whie also desiring to retire in less than 15 years.

It that is not motivation to do something I don't know what would be.

Like Andre, I enjoy seeing my investment income rise each year. My IRAs are up over $100k in the past year. I could stop working today but I am greedy and want some additional layers in my safety net and we are still working on fixing up "this old house". So that takes money and I would rather not dip into my living expenses to pay for home upgrades.

My NW has gone up because I had an interest in investing; not the other way around.
__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-08-2006, 05:15 AM   #10
Dryer sheet aficionado
 
Join Date: Dec 2005
Posts: 45
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

I always regarded investing as beyond my abilities and decidedly beyond my interest. I worked for years in equity investment firms and thought the analysts/money managers were insufferable bozos who had all reverted to the mean. However, I was always terrified of financing retirement since my father had worked most of his career for a company with no pension before 401k's came into being. During the 90's on the advice of a smart friend I parked my new 401k in an S&P index fund and forgot about it. Then, in 1999, another friend pointed me to a paper by William Goetzman on the "market timing" advantage of stale pricing by trading in and out of foreign mutual funds. I quadrupled my, by now, two 401ks with that trick until Spitzer made the mutual fund managers plug the leak. I still wasn't interested in investing and left my retirement accounts in money markets for several years. In the meantime, the housing bubble intruded on my consciousness with the sudden realization that the apartment above me had sold for forty time earnings. At that multiple I am a seller. So the shocking amount of equity in my home suddenly became T-bills in my Fidelity account.

Now things are different. I have never wanted to work and didn't start a career until it seemed unescapable at thirty-five. At the moment I am making my first concerted effort to understand investing and develop a strategy that I can live with. The Asset Allocation model is attractive because it is so well thought out, but I can't bring myself to forswear timing definitively. Security selection has no appeal for me. Markets that to me appear overvalued at this point include: housing, US equities, Japan & Korean equities, gold, oil, USD, AUD, NZD, and US bonds. I have read both Bernsteins, Swensen, and Ferri, but also Mandelbrot who points out that markets are riskier than they look and, in particular, riskier than MPT suspects. I am currently reading Darst's "Art of Asset Allocation" and he includes tactical AA, which may provide a framework that I can work with. I am willing to spend years if necessary to develop a plan before moving out of T-bills with its < .5% real rate of return.

So, in summary, I became interested in investing really only after stumbling into my little pile along the way, which leaves me a little chagrined. I plan now to transition from working to managing my money as my next, and I hope, last career. These days I find it very absorbing.
__________________
NYCGuy is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-08-2006, 10:27 PM   #11
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 77
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

I became much more interested as the value of the accuont got larger. During the mid 90's I was actually making about twice as much in my investments (mainly 401K) accts than I was at my job. Granted, it wasn't a real high paying job. And I wasn't spending the investment earnings, but letting it compound.

I thinkk you reach a critical mass in your investments, where they almost perpetuate themselves. Then, the trick is not to try and get to smart, and think you are a better investor than you really are (mostl likely, picking some basic index funds, and letting them ride contributed more to the Net Worth than reading the WSJ or IBD and trying to act on your new found stock market "savvy")
__________________
Most People are about as happy as they make up their mind to be - A. Lincoln
getoutearly is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-09-2006, 01:10 AM   #12
Recycles dryer sheets
 
Join Date: Apr 2005
Posts: 184
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

What's helped me is incresed efforts on INVESTMENT ALLOCATION more than individual investment decisions.

Years ago, I dwelled on individual stock decisions and did not pay enough attention into overall asset allocation.

I'm spending a lot of time now on diversification...........
__________________
Delawaredave is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-09-2006, 12:15 PM   #13
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 56
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

The 2000-2002 bear market is what really got me interested in investing. My 401(k) balances were just above my total contributed for my portion, and below what my employer had contributed for the match portion. I figure I had to have been cheated, or there was a computer error, or something fishy going on!

I had been good about investiong, but not paying attention to returns. I ended up building a rather large spreadsheet, so I could figure out the returns I was actually realizing, across all my investments. In turn, I pay more attention, and my investment returns have improved maybe ~1-2% annually because of it.


__________________
work4beer is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-09-2006, 01:39 PM   #14
Recycles dryer sheets
 
Join Date: Jan 2005
Posts: 362
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

Definitely.

First it started with putting aside extra money hubby and I were making working overtime. (mandatory/optional) We had a good plan for retirement (457s, IRAs, pensions) so we invested the extra for the boys' educations.

Once we realized we had enough college stash we decided to add some stocks and mutual funds to our portfolio. Now that we are retired we're adding more stocks and some bonds also.
__________________
kz is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-09-2006, 02:29 PM   #15
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

I pretty much ignored it (saving-investing) right up until I quit. Now, I am very interested; have to be on top of it---no choice. The exception was the stuff I controlled directly; i.e. my real estate investments, house, and the small businesses I owned. Truly, there wasn't a whole lot outside of those things for me to follow. Where others saved and invested for FIRE, we just earned and spent right to the end. Of course, the RE and my business bailed us out.

JG
__________________
MRGALT2U is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-10-2006, 03:28 AM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,408
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

well now that we have a large amount invested we have become overly interested...in fact my wife who knew nothing about the markets until the last 2 yrs or so has developed a real interest....i wish we could stop looking every day and cringing on the down days but we are addicted i think...we actually declared sunday a day of no money or investment talk to force ourselves to stop being obssesed with the markets......
__________________
mathjak107 is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-10-2006, 06:22 AM   #17
Thinks s/he gets paid by the post
BUM's Avatar
 
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,778
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

Quote:
Originally Posted by mathjak107
well now that we have a large amount invested we have become overly interested...in fact my wife who knew nothing about the markets until the last 2 yrs or so has developed a real interest....i wish we could stop looking every day and cringing on the down days but we are addicted i think...we actually declared sunday a day of no money or investment talk to force ourselves to stop being obssesed with the markets......

Hi mathjak,

Talking daily about market ups and downs has to be nerve wracking. How about declaring sunday as the only day to talk about the market. Assess the week in review and how that might effect the upcoming week. THEN graduate to monthly....THEN annually...


__________________
In a panamax down by the river.
BUM is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-10-2006, 11:50 AM   #18
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

Quote:
Originally Posted by BUM
How about declaring sunday as the only day to talk about the market.
Imagine if the American stock markets were open all weekend when you have plenty of time to do something about it instead of just checking things from the cubicle's computer network.

Imagine if you could buy & sell homes with just the click of a mouse and an $8 commission, move all your possessions, and register the kids for their new schools on Saturday or Sunday.

Maybe it's better that we don't have these "technology improvements"...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?
Old 02-10-2006, 12:37 PM   #19
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
Re: Did Your Interest in Investing / Saving Increase with Your Net Worth?

Its only a matter of time...
__________________

__________________
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
Reply

Tags
net worth


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
Poll: net worth to lifetime earnings firewhen FIRE and Money 9 01-08-2007 08:12 PM
net worth spreadsheet Martha FIRE and Money 26 07-31-2005 10:09 PM
Net Worth by Age Anon FIRE and Money 18 09-14-2004 05:34 PM
Net worth sunrunner4@hotmail.com Life after FIRE 23 08-11-2004 12:23 PM
Updated Net Worth Figures - How Do You Rate? intercst Other topics 0 01-22-2003 07:00 PM

 

 
All times are GMT -6. The time now is 05:00 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.