Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 08-24-2015, 08:56 AM   #21
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Posts: 3,695
As I've noted on other threads, I'm using this drop as an opportunity to "go back in time" and buy a stake in an S&P index fund; something I should have done a year ago but didn't.

Now it is September 2014 all over again. Of course, I'm betting on the S&P regaining itself, but I'm pretty confident.

I view it as that "missed boat" coming back to pick me up.
__________________

__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko 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!

Old 08-24-2015, 08:56 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,448
It would have to drop quite a bit to force me to rebalance. I hate rebalancing in Q4 when I get a bunch of distributions. If it happens sooner and reaches my threshold, I am obligated to rebalance.

I hope folks who had limit orders waiting for a drop don't regret they didn't wait for lower prices.
__________________

__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 08-24-2015, 09:01 AM   #23
Recycles dryer sheets
Theseus's Avatar
 
Join Date: Aug 2013
Posts: 484
Being an optimist, I'd say the dividend yields on equities are pretty attractive this morning. Having enough cash reserves set aside to sit out 5 years, I have little reason to be pessimistic. As long as I don't squander cash on a too early bargain hunting spree that is.
__________________
Theseus is offline   Reply With Quote
Old 08-24-2015, 09:09 AM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,029
I am sitting tight . I learned my lesson in 2008 -2009 . These drops do knock me into a somewhat more frugal mode but otherwise life as usual .
__________________
Moemg is offline   Reply With Quote
Old 08-24-2015, 09:13 AM   #25
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,834
As I don't use my stock and bond investments for income I just do my usual rebalancing whatever the situation.

At times like these living off pensions, annuities, SS or rent makes it easy to sit tight. However, if you are recently retired, didn't build in enough of a fixed income/cash cushion and have to sell into a prolonged downturn it could be nasty.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 08-24-2015, 09:16 AM   #26
Thinks s/he gets paid by the post
2017ish's Avatar
 
Join Date: Apr 2012
Posts: 1,842
Not retired yet, so we'll buy with 401k contributions four times each month, and every month with after-tax.

Sort-of-good news is that this is getting my asset allocation closer to where it objectively should be.
__________________
OMY * 3 2ish Done 7.28.17
2017ish is offline   Reply With Quote
Old 08-24-2015, 09:27 AM   #27
Recycles dryer sheets
 
Join Date: Jan 2014
Location: Austin
Posts: 493
Not doing anything. Part of sitting tight means I don't have a large stash of play money waiting for a buying opportunity. The next 4 years of living expenses are sitting in Wellesley and I don't even need to touch it until next January. Years 5-15 are sitting in Wellington and years 15+ are in a mix of Wellington, Vanguard Health, and Vanguard Energy.

What I do hope, however, is that the fund managers are doing what I pay those fund expenses for. And that would be to make the smart buy/sell/hold decisions that they should be more qualified to make than I am.
__________________
ER'd 6/1/2014 @ age 53. AA=70/30, WR=3%
Looking4Ward is offline   Reply With Quote
Old 08-24-2015, 09:27 AM   #28
Recycles dryer sheets
 
Join Date: May 2015
Posts: 56
Sitting tight as well - My 8% cash position will cover my living expenses for a few years so i don't have to worry about the markets. Now I just need to pull the trigger and resign....and go play golf.
__________________
OnTheBeach is offline   Reply With Quote
Old 08-24-2015, 09:28 AM   #29
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,823
Sitting tight: - - Nah, my plan for today was to invest half the money I got last Thursday afternoon from selling my house. I will DCA the rest over the next few months. So in accordance with my plan, I invested already this morning.

At least, I think I did. Vanguard said there might be a delay because the money has not cleared the bank (despite the fact that both my Vanguard balance and my bank balance agreed earlier this morning that the money is at Vanguard). Then Vanguard seemed to crash temporarily and I couldn't even get back in for a few minutes, which was unnerving.

Having a cocktail: - - Isn't it a little early for that? I don't drink, so I am enjoying the unusual third cup of coffee instead while I watch the market tumble. Extra creamer, please!
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 08-24-2015, 09:34 AM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 5,160
I've got a year or so sitting in cash that I could jump in with...but I'd just need to be selling something to live on again soon, so if it keeps dropping I'd be losing out. Still, I feel like I have to do something...so I'm going for a hike...and I'll have a cocktail later. At some point I'll look at whether I need to rebalance.
__________________
RunningBum is offline   Reply With Quote
Old 08-24-2015, 09:39 AM   #31
Thinks s/he gets paid by the post
ExFlyBoy5's Avatar
 
Join Date: May 2013
Posts: 1,977
Well, if I were going to rebalance some holdings today, it might be a little difficult...
Attached Images
File Type: jpg VG.jpg (106.8 KB, 54 views)
__________________
Founder and Head Lounger @ The Life of Leisure Institute
Retired in 2014 at the Ripe Age of 40.
ExFlyBoy5 is offline   Reply With Quote
Old 08-24-2015, 09:41 AM   #32
Recycles dryer sheets
Olbidness's Avatar
 
Join Date: Jan 2009
Location: W. Galveston Bay
Posts: 195
Interesting comments from people I work with. Stocks going down means time to sell.
Typical herd mentality.


Since I'm still w*rking I'll buy every two weeks when I get paid. Just like always.
__________________
Olbidness is offline   Reply With Quote
Old 08-24-2015, 09:44 AM   #33
Recycles dryer sheets
 
Join Date: Dec 2013
Posts: 331
I've been sitting on cash since selling a home in May. I've been debating between investing the money using DCA and paying off my other house. I decided ~2 weeks ago to start the DCA, so while I am starting to buy now and I can see how it might look like market timing, in reality it's just fortuitous timing. Not that I am complaining!

I plan to DCA the entire amount between now and the end of the year, so if the market goes back up I will catch a small break now, if it continues to drop I will continue to get in at lower prices. Since the money was going into the market no matter what, I wouldn't mind if this drop hadn't happened. I see it the same as if I'd gone to buy milk an found a $.50 off coupon when I reached into the fridge. I was buying the milk anyway, but I'm happy for the discount.


Sent from my iPhone using Early Retirement Forum
__________________
FI by 2024 is offline   Reply With Quote
Old 08-24-2015, 09:44 AM   #34
Thinks s/he gets paid by the post
ExFlyBoy5's Avatar
 
Join Date: May 2013
Posts: 1,977
Quote:
Originally Posted by Olbidness View Post
Interesting comments from people I work with. Stocks going down means time to sell.
Typical herd mentality.
And these are the folks that will be 70+ years old and can't figure out *why* they can't retire. I am looking forward to buying some since it looks like a good discount. But then again, I might just sit where I am. Oh, decisions, decisions!
__________________
Founder and Head Lounger @ The Life of Leisure Institute
Retired in 2014 at the Ripe Age of 40.
ExFlyBoy5 is offline   Reply With Quote
Old 08-24-2015, 09:44 AM   #35
Full time employment: Posting here.
 
Join Date: Aug 2014
Posts: 555
I retired at the start of this month. All those simulations show that the biggest gotcha is a market decline right at the start of retirement so I am a bit worried! Have a big chunk of company stock but at least I had the foresight to put a stop loss on the shares I was going to sell early next year (next year I expect to be in a lower tax bracket). I will be moving money from the 401K to rollover IRAs at a few other brokerages. Other than that I'm just going to ride it out.
__________________
ArkTinkerer is offline   Reply With Quote
Old 08-24-2015, 09:45 AM   #36
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,823
Quote:
Originally Posted by FlyBoy5 View Post
Well, if I were going to rebalance some holdings today, it might be a little difficult...
Keep trying! I think the Vanguard website has been overloaded by all the traffic due to this crash. You might be able to get in now.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 08-24-2015, 09:52 AM   #37
Full time employment: Posting here.
antmary's Avatar
 
Join Date: Mar 2008
Location: Northern California
Posts: 542
We don't live on our stock/bond investments. But, right now, our stock allocation is too low...will start to DCA this week.
__________________
antmary is offline   Reply With Quote
Old 08-24-2015, 10:02 AM   #38
Thinks s/he gets paid by the post
ExFlyBoy5's Avatar
 
Join Date: May 2013
Posts: 1,977
Quote:
Originally Posted by W2R View Post
Keep trying! I think the Vanguard website has been overloaded by all the traffic due to this crash. You might be able to get in now.
I was finally able to get in, but it's just too volatile for trading (for me, anyway)...so I'm out for the day. Others can be happy that I have freed up some bandwidth.
__________________
Founder and Head Lounger @ The Life of Leisure Institute
Retired in 2014 at the Ripe Age of 40.
ExFlyBoy5 is offline   Reply With Quote
Old 08-24-2015, 10:12 AM   #39
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,369
Quote:
Originally Posted by FlyBoy5 View Post
Well, if I were going to rebalance some holdings today, it might be a little difficult...

Same here. I just wanted to poke in account to see live quotes only. Vanguard is hell bent on making you a "buy and hold" investor!


Sent from my iPad using Tapatalk
__________________
Mulligan is offline   Reply With Quote
Old 08-24-2015, 10:17 AM   #40
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 3,128
I don't know enough to feel confident doing anything other than sitting tight. Dyed-in-the-wool passive index guy here due to my lack of knowledge and ability to do anything more. In a strange way, I'm rather welcoming this. It is the first serious drop/correction/whatever-it-is since I shifted from accumulation to withdrawal in 2011. I regard this as my first "seasoning" and am quite interested to see how I handle it. I think my INTJ nature helps in this regard.

My strategy for dealing with this was to break my monthly budget last night by dipping into next months money by just a little. I used the extra dosh to order some more parts for my hobby of building radios. I'm working on a project that has been going on since the beginning of this year and am keen to finish it so I can document it fully on my blog. This hobby takes up a big part of my days.

In other words, I'm concentrating on my daily life, the same as I always do. I have about a year's worth of cash which means that combined with dividend payouts, I should be able to keep going for about 2 years if the drop is extended and dividends drop a little also.

This will be interesting. I welcome it!
__________________

__________________
ER, for all intents and purposes. Part-time income <5% of annual expenditure.
Major Tom is offline   Reply With Quote
Reply


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
The Great American Contradiction Cocktail Midpack Other topics 18 02-21-2013 10:57 PM
Are Things THAT Tight ? ferco FIRE and Money 50 08-05-2011 12:34 AM
What is the difference b/w having or NOT having a beneficiary? swampwiz Life after FIRE 14 06-15-2010 01:16 AM
Frugal or tight: Where's the line? Khan FIRE and Money 48 07-14-2009 12:26 PM

 

 
All times are GMT -6. The time now is 05:42 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.