Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Question for those planning to dump extra cash into the market when we hit "bottom"
Old 10-10-2008, 09:43 AM   #1
Recycles dryer sheets
 
Join Date: Jan 2007
Posts: 222
Question for those planning to dump extra cash into the market when we hit "bottom"

Even though you may not be able to time the bottom, I've heard some folks mention that they're planning to put in extra cash. My question is, what are you putting it into? Individual stocks, mutual funds, ETFs? Something you already own, or something new?
__________________

__________________
CompoundInterestFan 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 10-10-2008, 09:51 AM   #2
Full time employment: Posting here.
Kronk's Avatar
 
Join Date: Aug 2005
Location: Philly 'burbs
Posts: 547
I put in some extra cash yesterday, and will do so again as money continues to come in. And I'll probably shift more from bonds to stocks. Not looking for "The Bottom", but I'm comfortable buying now.

And I'm continuing to add to my existing Total Stock Market funds, and several other Vanguard offerings: Value Index, Small Cap Value Index, Total International, etc.
__________________

__________________
Kronk is offline   Reply With Quote
Old 10-10-2008, 09:55 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
I will simply rebalance using the funds in my 401(k). That means I will most likely buy the S&P500 index fund.

You shouldn't have to think about what to buy since you have an asset allocation plan, right?
__________________
LOL! is offline   Reply With Quote
Old 10-10-2008, 10:12 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Apr 2006
Posts: 1,487
i'm buying vanguard total stock market index and total international ...
__________________
d is offline   Reply With Quote
Old 10-10-2008, 10:29 AM   #5
Recycles dryer sheets
 
Join Date: Jun 2008
Location: Los Angeles
Posts: 156
ETFs and low-cost medium-conservative managed funds.

Most important aspect is not needing the cash for at least 5 years.
__________________
CaseInPoint is offline   Reply With Quote
Old 10-10-2008, 10:34 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 2,020
Quote:
Originally Posted by CompoundInterestFan View Post
Even though you may not be able to time the bottom, I've heard some folks mention that they're planning to put in extra cash. My question is, what are you putting it into? Individual stocks, mutual funds, ETFs? Something you already own, or something new?
Existing holdings along with rebalancing. I'd be lying if I said I wasn't tempted to go after individual stocks though... GE is looking darn attractive right now.
__________________
Marquette is offline   Reply With Quote
Old 10-10-2008, 10:35 AM   #7
Full time employment: Posting here.
Lusitan's Avatar
 
Join Date: Jan 2006
Location: Boston
Posts: 620
The same equity investments I already hold:
- Vanguard Total Stock Market Index
- Vanguard Total Int'l Stock Market Index

I am not trying to find the needle in the haystack, I'm just buying the haystack. Of course, the haystack is going up in flames, but I am a man of principle.
__________________
Lusitan is offline   Reply With Quote
Old 10-10-2008, 10:40 AM   #8
Full time employment: Posting here.
Lakedog's Avatar
 
Join Date: May 2007
Posts: 654
Adding to total stock market index in tax deferred accounts......swapping ETFs in taxable account to lock in some tax losses.
__________________
Lakedog is offline   Reply With Quote
Old 10-10-2008, 10:41 AM   #9
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,860
I have been (manually) DCA'ing into the market on the 14th of every month, since February, in my taxable Vanguard account.

When I do that, I follow my investment plan as "LOL!" suggests. So, it will go into a couple of very broad Vanguard index funds.

If the market drops another 1000 points between now and Tuesday, I might not have the courage to stick with my plan. I hope that I do, but to be honest I really don't know. I will do whatever seems best to me on Tuesday.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 10-10-2008, 10:42 AM   #10
Recycles dryer sheets
 
Join Date: Jan 2007
Posts: 222
Quote:
Originally Posted by LOL! View Post
You shouldn't have to think about what to buy since you have an asset allocation plan, right?
I do, but given that it's such an extraordinary event, I was toying around with doing something extra (e.g., buying individual stocks) in addition to putting more money into my current funds. Maybe I'm just being greedy, but I have this "once-in-a-lifetime-so-don't-screw-it-up" feeling.
__________________
CompoundInterestFan is offline   Reply With Quote
Old 10-10-2008, 10:47 AM   #11
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,860
Quote:
Originally Posted by CompoundInterestFan View Post
I do, but given that it's such an extraordinary event, I was toying around with doing something extra (e.g., buying individual stocks) in addition to putting more money into my current funds. Maybe I'm just being greedy, but I have this "once-in-a-lifetime-so-don't-screw-it-up" feeling.
A lot of the books I have been reading say that you don't have to get the great returns to do better than most investors - - and in fact they make a very good case that if you just do as well as the Dow or S&P, you'll actually do better than most. Apparently greed is the downfall of a lot of people. Great returns often come with great risk. And so on...
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 10-10-2008, 10:58 AM   #12
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by Want2retire View Post
if you just do as well as the Dow or S&P
I don't think too many people find that comforting now...
__________________
"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)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 10-10-2008, 11:10 AM   #13
Thinks s/he gets paid by the post
 
Join Date: Nov 2007
Posts: 1,052
I'm gently buying regional bank stocks that were pre-hit last year. Oh, and AIG. I'm not willing to throw any serious money back in yet. JMO
__________________
Art G is offline   Reply With Quote
Old 10-10-2008, 11:18 AM   #14
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,093
Continuing to put into 401(k) and taxable accounts in my normal allocation and funds, plus I'll be re-balancing as usual in January.

I just used the portfolio analyzer on Vanguard that tells me for my current mix the worst year historically was -17% in 1931 and the best was 25.5% in 1933.

ytd I am at -19% (as of yesterday's close)
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 10-10-2008, 11:23 AM   #15
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
I'm currently investing in real estate since I had zero allocated to that sector for a while.

I'm putting some new money in current mutual funds I own.

And for play money, I had also purchased Citi a few weeks ago at 15 or 16, sold it at 22 and made a few thousand in cap gains, and I just bought in again in the low teens. I'm expecting them to cut the dividends a bit, but right now I am comfortable with it and understand the risk, or at least my risk.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Old 10-10-2008, 11:25 AM   #16
Recycles dryer sheets
 
Join Date: May 2006
Posts: 98
I just picked up 1500 shares of AEE - Ameren - a stodgy old public utility now yielding 9.4%.

If I had confidence, which I don't, I would have stuck the whole stash in there. Lets see, 1 mil x .094 = $94,000 a year at a dividend tax rate...not bad. Take your 4% and you still have 5.4% to cover inflation.

I think my 40k investment is just about what I can stomach in these times...
__________________
cyclone6 is offline   Reply With Quote
Old 10-10-2008, 11:28 AM   #17
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,866
It's like trying to put your finger in the dyke to be in there trying to help reverse the trend. Frankly, I think it's almost patriotic to buy now.

My plan was (and still is) to put earmarked cash into equities regardless of where the benchmarks are. Sixty percent of my earmarked cash is ready to go; the other forty percent went in Monday. But I'm struggling with the whens and the lump sums vs. DCA.
__________________
CuppaJoe is offline   Reply With Quote
Old 10-10-2008, 11:33 AM   #18
Full time employment: Posting here.
Urchina's Avatar
 
Join Date: Feb 2008
Location: Central Coast, California
Posts: 891
Quote:
Originally Posted by Lusitan View Post
The same equity investments I already hold:
- Vanguard Total Stock Market Index
- Vanguard Total Int'l Stock Market Index

I am not trying to find the needle in the haystack, I'm just buying the haystack. Of course, the haystack is going up in flames, but I am a man of principle.
As opposed to a man of principal....
__________________
"You'd be surprised at how much it costs to look this cheap." -- Dolly Parton
Urchina is offline   Reply With Quote
Old 10-10-2008, 11:36 AM   #19
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,093
Quote:
Originally Posted by Urchina View Post
As opposed to a man of principal....

ouch
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 10-10-2008, 11:38 AM   #20
Full time employment: Posting here.
Lusitan's Avatar
 
Join Date: Jan 2006
Location: Boston
Posts: 620
Quote:
Originally Posted by Urchina View Post
As opposed to a man of principal....
I was hoping someone would say that.
__________________

__________________
Lusitan 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
Bottom to hit prediction? Orchidflower FIRE and Money 22 10-05-2008 11:10 PM
"Bottom Line" magazine: Anybody get it here? Orchidflower Other topics 3 12-29-2007 07:07 PM
What to include in "cash/fixed income" 2B FIRE and Money 12 06-29-2007 11:54 AM
OT: Have you guys even hit/seen/been near the bottom? LRAO FIRE and Money 76 12-23-2006 05:08 PM
M*'s Sue Stevens: "How Two New Tax Laws Will Affect Your Bottom Line" Nords FIRE and Money 5 09-28-2006 01:44 PM

 

 
All times are GMT -6. The time now is 10:35 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.