Dow over 28,000!

[Katsmeow]

The balances are now correct this morning, although they now removed the retirement calculator (again) from the summary sheet.

Yes, I had the same experience. I saw the drop yesterday and went and looked at each fund and saw which ones had reported the distributions.

This morning the balances were correct.

 

[steelyman]

I was glad to see the year-end distributions get started. Earlier this year I stopped reinvestments of all stock-type funds in my traditional IRA. Rather, I’m moving the cash over to bond-type funds in that same traditional IRA.

The plan, which will take some time, is to have only stock funds in Roth (already there) and mostly bonds in traditional.

 

[jollystomper]

Me, three!!

Checking portfolio balances is so much more fun now, than it was back in 2008-2009. I remember those depressing threads back then here on the forum! I like this kind of happy thread a lot better.

December of last year is still too close for me to get too happy just yet. I'll wait and see how things are on 12/31 before doing my happy dance.

 

[ckelly78z]

December of last year is still too close for me to get too happy just yet. I'll wait and see how things are on 12/31 before doing my happy dance.

Nov/Dec of last year was bad to everyone, I lost about 15% in 2 months, but have gained back 26% this year.

 

[RobbieB]

I made a hundred and thirty grand last month, woo-hoo!

 

[W2R]

I made a hundred and thirty grand last month, woo-hoo!

Terrific!

 

[Rianne]

Good feeling knowing we can weather a storm a little easier.

 

[Andre1969]

Nov/Dec of last year was bad to everyone, I lost about 15% in 2 months, but have gained back 26% this year.

Yep, from 9/30/18 to 12/24/18, I lost about 17.5%. It roared back fast though. By 12/31/18, I was only down about 13.1% from that September peak.

I like to look at that period from 12/31/17 to 12/31/18 though...I was only down about 6.9%, and that takes some of the drama out of it

I'm up around 31% from that 12/24/18 bottom.

 

[Retired Expat]

So wondering if all this extra money makes any of you change your thinking or budgets?

I started the year (after that horrible December '18) with a projected 2.5% withdrawal rate and felt pretty good... (have other income outside of the financial investment portfolio.) Here we are about a year later and despite my best efforts and still pulling out that money and what I thought was excess spending am up quite a bit from where I expected. So does one recalculate their 2020 budget based on the new balance or do you stick with what it was when you started plus inflations as is suggested and keep letting it grow?

I am all for LBYM That is Below not "Beyond" or perhaps is it time for a little extravagance? Hard when one is cheap by nature and been all about savings for some time.....

A related question, do you believe it is better to blow a fixed amount on something special, Trip, new car, Kitchen renovation, or adjust your lifestyle? Better clothes, more and better restaurants, Bigger house, a boat, 5 star travel instead or 4 star. First class instead of Business? Anyone afraid of getting used to that more expensive lifestyle?

 

[Dtail]

So wondering if all this extra money makes any of you change your thinking or budgets?

I started the year (after that horrible December '18) with a projected 2.5% withdrawal rate and felt pretty good... (have other income outside of the financial investment portfolio.) Here we are about a year later and despite my best efforts and still pulling out that money and what I thought was excess spending am up quite a bit from where I expected. So does one recalculate their 2020 budget based on the new balance or do you stick with what it was when you started plus inflations as is suggested and keep letting it grow?

I am all for LBYM That is Below not "Beyond" or perhaps is it time for a little extravagance? Hard when one is cheap by nature and been all about savings for some time.....

A related question, do you believe it is better to blow a fixed amount on something special, Trip, new car, Kitchen renovation, or adjust your lifestyle? Better clothes, more and better restaurants, Bigger house, a boat, 5 star travel instead or 4 star. First class instead of Business? Anyone afraid of getting used to that more expensive lifestyle?

I am using a % of current/remaining portfolio WR concept using a 3% rate. So right now the budget will be higher for next year.

 

[SecondCor521]

So wondering if all this extra money makes any of you change your thinking or budgets?

I started the year (after that horrible December '18) with a projected 2.5% withdrawal rate and felt pretty good... (have other income outside of the financial investment portfolio.) Here we are about a year later and despite my best efforts and still pulling out that money and what I thought was excess spending am up quite a bit from where I expected. So does one recalculate their 2020 budget based on the new balance or do you stick with what it was when you started plus inflations as is suggested and keep letting it grow?

I am all for LBYM That is Below not "Beyond" or perhaps is it time for a little extravagance? Hard when one is cheap by nature and been all about savings for some time.....

A related question, do you believe it is better to blow a fixed amount on something special, Trip, new car, Kitchen renovation, or adjust your lifestyle? Better clothes, more and better restaurants, Bigger house, a boat, 5 star travel instead or 4 star. First class instead of Business? Anyone afraid of getting used to that more expensive lifestyle?

I don't budget, really. I spend what I need and watch what percentage that is of my FIRE stash to modulate whether to spend more or less. As of Friday's close my net WR is 0.35%, so obviously I don't know how to spend money. I'm rather uncreative that way. It does make me think I need to be more creative, or else my kids will just be the ones to travel First Class.

Whether to recalculate or just give an inflation adjustment ends up being a trade off between spending more now vs. ending balances, on average, being lower. Depending on the withdrawal rate, you're also potentially increasing the risk of running out of money, but your 2.5% is probably bulletproof according to standard thought.

I don't like "blowing" money regardless of what it is blown on. I've tried that and it just makes me feel worse to waste it. I'd rather not spend it in the first place. I don't really worry about getting used to a nicer lifestyle, as I've experienced aspects of a nicer lifestyle before and for the most part it really doesn't do much for me. Although business class in Emirates from Seattle to Dubai was nice and worth the upgrade.

 

[W2R]

And, yet ANOTHER all time high today, for the total of my portfolio plus bank accounts. Don't wake me up from this sweet dream!



As for the question of how this affects my budget, I am really used to living a certain way that is comfortable for me, and have no desire to get all ritzy or high end la-de-da about the way I live. That just wouldn't be me; my overall lifestyle will not change.

I might spend a thousand or two for fun sometime in the next month or two, just because I can. No earth shaking permanent changes in spending level, though.

 

[Dtail]

And, yet ANOTHER all time high today, for the total of my portfolio plus bank accounts. Don't wake me up from this sweet dream!



As for the question of how this affects my budget, I am really used to living a certain way that is comfortable for me, and have no desire to get all ritzy or high end la-de-da about the way I live. That just wouldn't be me; my overall lifestyle will not change.

I might spend a thousand or two for fun sometime in the next month or two, just because I can. No earth shaking permanent changes in spending level, though.

You are doing everything but saying that word.
No fears for all of us?......

 

[travelover]

Sell!
Sell!
Sell!

 

[street]

I made a hundred and thirty grand last month, woo-hoo!

You done great for 1 month of November. I can see why you blow that dough.

 

[RobbieB]

Yeah Baby!

The landscapers are working up the 3D model of my yard. Should be about 2 to 3 months of plan revisions and then the work begins.

Wifey will be happy!

 

[ziggy29]

I've been slightly underinvested for the last year or two, since circumstances changed and we didn't need as aggressive a mix any more. Add to that my general feelings that valuations are a little too high, and it led us closer to a 55/45 allocation. That said, it has grown enough that I've been able to take SEPP from two of my IRAs and they are still slightly up over the last couple years. And I like having enough dry powder to keep my options open if the market decides to go Ursa Major again.

 

[NW-Bound]

Sell!Sell!Sell!

RobbieB would say "Spend! Spend! Spend!".

 

[street]

That is about right, NW-Bound. LOL

 

[NW-Bound]

Spending can be thought of as a method of rebalancing. Instead of selling stock to buy bond, which is overvalued now, one rebalances into Wagyu beef, XO Cognac, caviar, etc...

I don't like bonds either, so I am piling up cash. I never have so much cash. It pays a little less than 2%, so it's not too bad.

 

[W2R]

You are doing everything but saying that word.
No fears for all of us?......

Sell!
Sell!
Sell!

Well, you know the market is a roller coaster. What goes up, must come down, and vice versa. No problem, right? Que sera, sera...

 

[tmm99]

Yep, it's getting a bit scary.

 

[audreyh1]

So does one recalculate their 2020 budget based on the new balance or do you stick with what it was when you started plus inflations as is suggested and keep letting it grow?

I am all for LBYM That is Below not "Beyond" or perhaps is it time for a little extravagance? Hard when one is cheap by nature and been all about savings for some time.....

I always base my Jan annual withdrawal on year end portfolio value. Which means we took a cut in income in Jan 2019, but expect a big raise this coming Jan knocking on wood....

But our budget is independent of our income. We don’t immediately ratchet up our spending and often bank most of the excess. Spending changes are more gradual.

But I tell you, if there were some big ticket item you were waiting on - this would seem to be a good time.

 

[pb4uski]

I'm starting to think that if my portfolio exceeds $x that any excess is eligible for Blow That Dough! spending.

Does anyone else do this? If so, how has it worked for you.

 

[W2R]

I'm starting to think that if my portfolio exceeds $x that any excess is eligible for Blow That Dough! spending.

Does anyone else do this? If so, how has it worked for you.

Sometimes I find myself thinking that as long as my portfolio is bigger than it was before I bought my Dream Home.... but I haven't actually spent the excess, which is several hundred thousand by now. I suppose not spending the excess is why it keeps growing as it has.