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02-10-2016, 12:20 PM
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#21
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Full time employment: Posting here.
Join Date: Mar 2010
Posts: 889
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Well I guess its a good thing I'm a very stubborn person. When my investments go down it doesn't scare me... it does piss me off though. The market is simply wrong, I'm the one with the right ideas.
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02-10-2016, 02:32 PM
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#22
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Dryer sheet aficionado
Join Date: Mar 2013
Posts: 30
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Been bouncing around 4 - 6 % loss since mid 2015, but still up around 300K from
2014. I started selling some winners around DOW 14,000 in anticipation of retirement
and to lock in some gains from the great recession. I feel good we are out of some
higher risk investments and went from 70/30 to 58/42, also, built a 3 + year cash position in the event we experience a significant downturn. I'm neither buying or selling at the moment, just staying the course like I've been taught. Eventually, hope to further reduce to 30 % or so stocks. The need to take risk is diminishing every year.
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02-10-2016, 02:56 PM
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#23
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,864
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Quote:
Originally Posted by Corporateburnout
Guns and bullets are my contingency plan if I'm diagnosed with Alzheimer or a terminal illness
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In such a case, you should only need one of each.
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02-10-2016, 03:35 PM
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#24
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Quote:
Originally Posted by Corporateburnout
+1. We maintain 3+ years of spending in cash, I-bonds and short term bonds to ride out market downturns.
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Yeah, this is sort of a "buckets of money" approach. If you make sure you keep several years of living expenses in "safe stuff", it's easier to weather the bear markets, drawing down the cash and "cash-ish" stuff for expenses, and waiting for the market to recover so you can replenish that bucket.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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02-10-2016, 03:43 PM
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#25
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Location: Chicago
Posts: 1,154
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Quote:
Originally Posted by W2R
I have a very high strung, nervous temperament about most things, but not about investing. I can't afford that luxury.
In addition I am sure it helps a lot that I have several different income streams that are independent of market conditions. As my dear departed mother would have said if in similar circumstances, rolling her eyes, "This wasn't by accident, you know!"
Still, over 50% of my spending money DOES come from my portfolio, so I keep an eye on it. To be honest, this just seems like nothing after going through 2008-2009. On March 9th, 2009, the Dow Jones hit 6443; yesterday it hit 16014. The market could become just as bad as it's 2009 low, or worse! I'm not saying that it won't because I have no idea. But it's not there, and for me this dip is just so insignificant thus far.
I came out of 2008-2009 with a somewhat larger portfolio than previously because I bought low instead of selling. This time, if the market plunges just as far, I won't have as much cash to spend buying low. Still, I think I would be just fine as long as I don't sell.
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W2R, can't wait until I see your WHEEEEE post again
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02-10-2016, 03:46 PM
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#26
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Full time employment: Posting here.
Join Date: Jan 2010
Posts: 539
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In 2008, I lost hundreds of thousands of dollars, panicked and sold all equities and got completely out of the market. It took me years to feel comfortable enough to get back in. Obviously, selling was a mistake.
Interestingly, this go around I am not panicked at all. And, I am even buying as the market goes down. The difference is:
(a) I read and learned a lot from this forum
(b) I am in Index funds and not individual stocks
(c) I have my portfolio balanced to a level I feel comfortable with. While my % of equities is lower than what I believe most people have on this forum - I learned my own risk tolerance. And now the market downturn does not make me panic.
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02-10-2016, 04:13 PM
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#27
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Location: Bonita (San Diego)
Posts: 1,795
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Quote:
Originally Posted by JoeWras
I've still been adding, including some in January and February. I have to say it takes some nerves of steel to do so.
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This is exactly why putting it on autopilot every month makes so much sense to me. We invest every month on the 1st and 15th. It takes no nerve whatsoever!
__________________
"So we beat to our own drummer in the sun;
We ask for nobody's permission to run.
I just wanna live in a world like that;
Now I'm gonna live in a world like that!" - World Like That, O.A.R.
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02-10-2016, 04:28 PM
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#28
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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Quote:
Originally Posted by ripper1
W2R, can't wait until I see your WHEEEEE post again
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What, cashing out a big chunk of my portfolio to buy my dream home in cash last May was not enough? I'm sure I must have said it at some point, but just in case I didn't then let me say it in retrospect: "WHEEE!!!"
I don't feel very Wheee-ish (Wheee-like?) right now, though, with the market being so wonky.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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02-10-2016, 04:33 PM
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#29
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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Quote:
Originally Posted by Earl E Retyre
In 2008, I lost hundreds of thousands of dollars, panicked and sold all equities and got completely out of the market. It took me years to feel comfortable enough to get back in. Obviously, selling was a mistake.
Interestingly, this go around I am not panicked at all. And, I am even buying as the market goes down. The difference is:
(a) I read and learned a lot from this forum
(b) I am in Index funds and not individual stocks
(c) I have my portfolio balanced to a level I feel comfortable with. While my % of equities is lower than what I believe most people have on this forum - I learned my own risk tolerance. And now the market downturn does not make me panic.
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That is a heart-breaker. The upside of it is that it is extremely unlikely that you would ever forget and do that again. And good for you to not panic! Even if you do, the emotion is one thing and acting on it is another.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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02-10-2016, 05:13 PM
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#30
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,743
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Quote:
Originally Posted by Car-Guy
In such a case, you should only need one of each.
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What if the first gun jams wouldn't I need more bullets to load the second
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02-10-2016, 05:46 PM
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#31
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Full time employment: Posting here.
Join Date: Jul 2013
Location: London/UK (dual US/UK citizen)
Posts: 502
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Stepped back in today - sold some short term bond fund VBIRX and bought VIG - the dividend stock fund. I figure a 2.49% yield on VIG is not bad as a defensive play, especially as I don't think a recession is coming (i.e. dividends probably won't come tumbling down). My current allocation is: 53% pure stock funds, 5% REIT fund, 37% bond funds 5% cash (also part of my very conservative defensive play). Cash and bonds together = 10.8 years of expenses.....
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02-10-2016, 06:03 PM
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#32
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,173
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Having lived through two 40%+ declines, all I can say is that 'You ain't seen nothing yet."
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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02-10-2016, 07:27 PM
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#33
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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Quote:
Originally Posted by Chuckanut
Having lived through two 40%+ declines, all I can say is that 'You ain't seen nothing yet."
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I looked at a historical PE chart and this market isn't close to being a bargain, in fact it is still rather high. Im sure pitiful bond yields are providing some price support though. I need 10% more down before I go back in. Of course if it does drop 10%, I will wait for 15% and miss the train pulling away from the station.
Sent from my iPad using Tapatalk
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02-10-2016, 08:05 PM
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#34
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Full time employment: Posting here.
Join Date: Aug 2015
Posts: 550
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I also lost a lot but relatively sure that the Bear Market just started. It could go much lower than 10%. The Market indicates that we are sliding into Recession while the Feds telling us that we are OK but the rest of the World is not. Anyway my plans to add more to my individual stocks holdings is on hold for now while losses continue to mount.
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02-10-2016, 08:38 PM
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#35
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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Quote:
Originally Posted by VFK57
I also lost a lot but relatively sure that the Bear Market just started. It could go much lower than 10%. The Market indicates that we are sliding into Recession while the Feds telling us that we are OK but the rest of the World is not. Anyway my plans to add more to my individual stocks holdings is on hold for now while losses continue to mount.
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Sentiment sure is negative. I just looked at my accounts, thought I had about 10% in Total Stock, but it is actually around 6%. Would like a quick blow off so I could put 25% or so in some common equity funds. But being brave enough to actually do it while having avoided all the carnage the past year makes it hard to reenter.
Sent from my iPad using Tapatalk
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January was a real kick in the teeth!
02-10-2016, 09:51 PM
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#36
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Recycles dryer sheets
Join Date: Jun 2012
Posts: 88
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January was a real kick in the teeth!
I held my nose and bought bond funds steadily in 2013 and 2014 to keep my allocation where it needed to be.
Since August 2015 I have held my nose and bought stock funds, mostly international, to keep my allocation where it needed to be.
Hasn't been easy though.
Sent from my iPhone using Early Retirement Forum
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02-11-2016, 03:50 AM
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#37
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Posts: 12,598
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For what? To kill yourself? or to rob banks ?
I guess I don't "get" the guns-and-bullets reference.
Quote:
Originally Posted by Senator
I If they go to $0, I have guns and bullets.
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__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Even a blind clock finds an acorn twice a day.
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02-11-2016, 04:38 AM
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#38
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Thinks s/he gets paid by the post
Join Date: Jan 2014
Posts: 1,764
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Quote:
Originally Posted by Amethyst
For what? To kill yourself? or to rob banks ?
I guess I don't "get" the guns-and-bullets reference.
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Quote:
Originally Posted by Senator
If I had individual stocks, I would be more worried. I am down about the same as you, maybe a bit more, although I am still in the buying mode. I purchase the same ~11K a month, sometimes slightly more.
Individual stocks can go to $0, no matter how big the company is. Indexes likely not. It is probably NOT different this time.
IVV, IVW, IWM, QQQ, DVY are my main holdings. If they go to $0, I have guns and bullets.
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I assumed Senator meant he would have guns and bullets to defend himself and what he owns if all goes into financial chaos. But also thought it was a joke.
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02-11-2016, 06:37 AM
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#39
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2011
Location: NC Triangle
Posts: 5,807
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Truer words were never spoken (I mean "typed"). For those who have the opportunity to regularly invest in things like employer retirement plans, just keep plugging away.
Maybe you stumbled on e-r.org to find helpful advice for achieving (or equally importantly, sustaining) an early retirement? Or - and this is what I think of - maybe you're someone farther down the road who's worked year after year and just can't keep on doing it indefinitely (for whatever reason)? Study after study is available that all point to the same, boring, approach.
__________________
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02-11-2016, 07:20 AM
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#40
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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Quote:
Originally Posted by calmloki
if your 5% loss = $170,000, doesn't that mean you still have over $3,200,000 moldering away in the stock market? Some might view that as a rather enviable position in which to be. As in, you probably won't have to sell plasma to buy a tank of gas for the old Corolla.
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Actually, the S&P was at 2,129.20 on 5/18/15. It is now 1,851.86. That is an almost 15% drop. Most stocks in the S&P are down 20%+. To be down 5% and lose $170K does take 3.2M.
It only takes $1.13M to get that kind of drop and now be worth $170K less. If you bought at the wrong times, as in on a regular schedule, you may not even match the S&P returns and have suffered more. A far cry from $3.2M.
Quote:
Originally Posted by splitwdw
I assumed Senator meant he would have guns and bullets to defend himself and what he owns if all goes into financial chaos. But also thought it was a joke.
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Yes, it is a joke. (unless the S&P actually goes to 0)... If the S&P actually went to 0, money would be of little use. Gold would be hard to spend. Banks would be closed and out of money. Politicians and their cronies would still be living the fat cat life and that would have a tendency to upset people .
You would need an alternate plan... Of course, drinking may also be a solid option, so stocking up on some whiskey would not hurt a bit either.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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