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Old 09-22-2008, 03:56 PM   #41
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I see that oldwoman appeared to start investing in 2003, so she missed the 45% dropped in the stock market between 2000 and 2003. She also missed the 1987 one-day drop of 25% and the various down years between then and when she started. Since 2003 the stock market pretty much went only up until November 2007.

The stock market drop since November 2007 has been relatively mild as far as drops go and not unexpected. The stock market goes down about one year out of every four. There is really no need to be depressed about it. This is where you rebalance so that your equity percentage is back where you want it. You know, buy low and sell high later.
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Old 09-22-2008, 03:59 PM   #42
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I see that oldwoman appeared to start investing in 2003, so she missed the 45% dropped in the stock market between 2000 and 2003. She also missed the 1987 one-day drop of 25% and the various down years between then and when she started. Since 2003 the stock market pretty much went only up until November 2007.

The stock market drop since November 2007 has been relatively mild as far as drops go and not unexpected. The stock market goes down about one year out of every four. There is really no need to be depressed about it. This is where you rebalance so that your equity percentage is back where you want it. You know, buy low and sell high later.
Yes, I agree. It's not pleasant to watch your nest egg evaporate on paper due to market swoons and inflation. But yes, this is someone who appears to still be up overall.

You don't get "market returns" in a straight line. There's a reason why investing has a higher expected ROI than a CD, and that reason is risk and volatility that some people just can't stomach.
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Old 09-22-2008, 04:34 PM   #43
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Maybe I've been beaten up so many times I've become too complacent. I started investing in the 1960's while in high school. I managed to build a small fortune (~$6,000) by 1973 to watch almost 70% disappear in what seemed like overnight. Rebuilt through savings but had all of my money in a house that became almost worthless because of a major employer shutdown in a smallish city during the early phase of the oil bust. Managed to stay barely solvent and went back into equities in July 1982 (great timing) but pissed away who knows what in technical analysis, semi-day trading and commodities. Fortunately, my income exceeded my foolishness and eventually my company thrift plans and later 401k overcame my self-destructive behavior.

I've lost about 4 or 5 years of retirement living expenses. I am not happy but I won't live my life around it. I am very glad I moved to 40% cash/fixed last summer from my previous 90%.

This too shall pass.
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Old 09-22-2008, 10:33 PM   #44
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I started investing three days before my divorce was final in 1984. But at 2K a year I only looked once a year and only had one stock or one mutual fund at a time. I got my current 401K in 2003 so put in 14K then 15 then 16 then 18 then 20.5 two or three times so put in about 112K and the company put in 8K or so. But that is only the current 401K. I have a ROTH that I converted old 401Ks and old IRAs and taxable investments so a total of about 360K total.
I want to sell my house and was hoping to pay cash for the replacement and have money leftover to invest but my value is down faster than the cheaper house I want so stuck here.
I am 60 and wanted to move to a one level house out off the city before moving with all these stairs was a problem. The stairs don't bother me much yet but I don't like carrying laundry up two flights. I can usually get my boyfriend to do it for me but I want to settle in to retirement while I can garden and build things.
I don't think I am clinically depressed I just feel whiny. I still have a great job, nice boyfriend and wonderful family and my cat loves me.
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Old 09-22-2008, 10:50 PM   #45
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Stairs can be a problem. But if you can't move away, I have some suggestions.

First, there are mechanical lifts you can get for stairs and you could have one installed later when you are older. Frank's father had one put in their house, and it was very reliable. They aren't cheap, but neither is moving.

Or, depending on the layout of the home maybe you could move your bedroom downstairs. Maybe you can have the washer/dryer moved to the first floor as well. Or maybe not; I guess some houses lend to that better than others.

I am glad you are not clinically depressed! Life is too much fun to be miserable for very long.
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Old 09-23-2008, 10:55 AM   #46
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It's ok to be whiny from time to time.

However, I wouldn't be worrying too much about being stuck with your current real estate as there is still a chance that sometime in your future you will be able to move to the single level you desire. It may not be this year or the next, but it may still happen.

In the meantime I would be coming up with a plan B that provides a good alternative from your original dream.

BTW if you did sell and move to the single level, how essential to your retirement were the surplus funds you were hoping to achieve from the sale of your current house?
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Old 09-23-2008, 01:36 PM   #47
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Try to be happy where you are in life

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Originally Posted by old woman View Post
I have been in my house since 1992 so it is worth more than I paid for it and more than my mortgage. I have allocated my investments all in equities mostly mutual funds pretty high in international. That is what is so depressing I don't time the market so stay fully invested, I made 50K in 2007 but lost 85K this year but made 15K in the last two days.
2007 I made money in the market and my house value went up so my net worth was soaring it was really fun. I was hoping the balloon would stay inflated and my net worth would get so high I could retire in style maybe wealthy. Another couple of good years and I could sell my house and pay cash for a new one and have more money to invest. Now I just have to keep working and home it changes back.
I don't want to tell you not to be depressed, however why not look in the mirror and appreciate what you do have and that perhaps your healthy and you do like your job. You could be sick like a previous post I just read, or have lossed your job and live on the streets. I have to tell myself the same thing sometimes,but somewhere,someone is always doing a lot worse and not complaining about their situation. Probably not what you want to hear,but hope it makes you look at it from a different view.
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Old 09-23-2008, 09:29 PM   #48
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[QUOTE]BTW if you did sell and move to the single level, how essential to your retirement were the surplus funds you were hoping to achieve from the sale of your current house?[QUOTE]
I am marginal so the extra would be nice. I don't have any pensions so only SS and the rent my boyfriend gives me and my life savings of about 360K and about 200K of home equity now. I can buy a single level house for about 200K so a move would be break even.
If I have a paid off home with a well and septic system where I can grow some of my own food I might be able to live on SS and the rental income so I guess I don't need my life savings at all. But I want medical insurance besides Medicare and a new vehicle two more times in my life and car insurance. The difference between 4% of 300K and 4% of 500K will give me some cushion for comfort and furniture, new appliances and little things I want. Putting off retirement will increase SS by about 8% a year so going from 1200 to 1500 if I wait a bit and 1800 if I wait for 70 but then I might not want to live on acreage.
I don't want my current house, the basement leaks and it is really old. I have a guest room on the main floor but too small to be my bedroom. I could get a housekeeper to do the laundry so I never need to go to the basement. I have a 6 car garage I could move the laundry to that, it has a furnace so it wouldn't freeze and our temps aren't that cold or I could use laundromats if I couldn't make it to the basement. I might never get too unhealthy for stairs but planned to sell when I was old when I bought this house.
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Old 09-23-2008, 09:53 PM   #49
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Do you feel that boyfriend thing is stable enough that you might consider going in 1:1 with him on the new home? From what you have said he is relatively well off.

ha
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Old 09-23-2008, 10:00 PM   #50
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It sounds like you will be OK for the time being without moving, though I guess the mortgage payment is still a stumbling block. Maybe you could refinance.

You suggested some great work-arounds for dealing with the stairs. And like you said, you may never have problems with the stairs, or it may be years from now. I would expect that long before that time, the housing market will have recovered.

Like you, I am expecting to move to a less expensive house after ER. I will probably net around $50K, though it depends on the kind of house I end up getting (I am not sure what I want, yet). I could use the $50K for expenses such as remodeling and redecorating, moving, and/or a new car.
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Old 09-23-2008, 10:17 PM   #51
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Did anyone see the article last week in the WSJ where some lady was saying she sold all her equities because the market spooked her but the day of the article was one of the big rebound gains? Now THAT would be depressing seeing everyone who didn't panic drop 10% but gain 9% of it back over the week, but you didn't get most of the gain because of one phone call or web click.

Granted today was another boot in the ass but as someone else in thread who was asking when your retire date is think of it as a better buying opportunity and you're fortunate enough to have the income and financial discipline to take advantage of it over the coming years.

Other than that I have images of Belushi in that garage advising Flounder to start drinking heavily.
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Old 09-23-2008, 10:18 PM   #52
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Darn good advice. Things will either turn up or they wont.
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Old 09-23-2008, 10:42 PM   #53
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Should I go to a doctor and get some drugs for my depression or just wait for things to change? Things always change don't they?
Things are always in flux. It will always be light at the end of the tunnel. Drugs will always have some side affects. Check out some of the sites that talk about whether medical treatment should be sought:
Depression diagnosis is key - MayoClinic.com

Take care.
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