Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Re: ER Worries My personal Dilemma. Any Thoughts?
Old 10-24-2004, 04:29 AM   #21
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 1,318
Re: ER Worries My personal Dilemma. Any Thoughts?

Shokwave,
Congrats on getting to log some good time in the Caribbean now that Hurricane season is (almost?) over.

Your timing reminded me of an old stock market bromide: "Sell in May and go away" or something like that, implying that there were months when it paid to be out of the market (I think you were supposed to get back in by Christmas but can't remember the whole saying, anyway, efficient market people have no doubt turned it on its ear by now).

Still, my personal experience is that if it is possible to be somewhere (sailing) where you don't worry about stocks for a long period of time, that is exactly the time to be _in_ the market, or at least automaticaly DCA'ing into equities. Its the overanalysis in my experience that causes the twitchy fingers and bad decisions.

So, if you want a contrarian view, (since everybody knows stocks are going down, right?!), I'd try to set up some sort of equity positions or DCA, a nice batch of small, international and value index or low-cost funds, and then go away sailing for six months. And don't check on your stocks while you're gone -- no fair hunting down copies of the Herald Tribune in Antigua--

Have fun; try to send us postings of your ports of call from time to time from an Internet Cafe -- I remember finding a nice one down at the water's edge in downtown Roadtown, Tortola, and have found them in most other places around the bigger ports in the Caribbean. (Maybe you're really high tech and have internet access from the boat?)

ESRBob
__________________
ER for 10 years; living off 4.3% of savings (and a few book royalties ;-)
ESRBob 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: ER Worries My personal Dilemma. Any Thoughts?
Old 10-24-2004, 05:56 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,666
Re: ER Worries My personal Dilemma. Any Thoughts?

Quote:
Shokwave,
No fair hunting down copies of the Herald Tribune in Antigua--

Have fun; try to send us postings of your ports of call from time to time from an Internet Cafe -- I remember finding a nice one down at the water's edge in downtown Roadtown, Tortola, and have found them in most other places around the bigger ports in the Caribbean. (Maybe you're really high tech and have internet access from the boat?)

ESRBob
Awww! As far as paragraph 2 is concerned you can see our travels on my web page. Simply Click on "Cruising The Caribbean" this will be our second year doing it. There are plenty of Tortola and the Road Town Marina. Most are at Nanny Cay on Tortola.

www.impconcepts.com (Ignore my hobby portions of the site)

SWR
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
ShokWaveRider is online now   Reply With Quote
Re: ER Worries My personal Dilemma. Any Thoughts?
Old 10-24-2004, 07:55 PM   #23
Thinks s/he gets paid by the post
charlie's Avatar
 
Join Date: Mar 2004
Location: Dallas
Posts: 1,211
Re: ER Worries My personal Dilemma. Any Thoughts?

SWR,

You complained that to DCA "would take forever".

Actually, what you try to accomplish with DCA is
to spread your investment out over a business
cycle to avoid investing at the peak.

Gurus like Bernstein and Bogle recommend 2-3 years
is about right.

Studies have shown that "plunging" wins over DCA
about 60-70% of the time, but the advantage does
not outweigh the risk, IMHO ...... especially when you
are talking about your retirement nest egg.

Cheers,

Charlie
charlie is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
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
What would you teach in Intro to Personal Finance? Peaceful_Warrior Other topics 18 04-24-2007 11:11 AM
Personal Umbrella versus Personal Excess Liability policies ? Linney FIRE and Money 25 11-28-2006 07:06 PM
Supplemental Protection...Your thoughts please gmt Young Dreamers 16 11-28-2006 11:37 AM
Worries Martha Other topics 72 02-21-2006 09:52 PM
Is ER more about economics or about getting past social norms and personal fears BearlyWorking FIRE and Money 26 12-18-2005 06:08 PM

» Quick Links

 
All times are GMT -6. The time now is 09:50 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.