Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 02-08-2014, 12:23 PM   #81
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Lsbcal's Avatar
 
Join Date: May 2006
Location: west coast, hi there!
Posts: 5,697
Quote:
Originally Posted by Options View Post
...(snip)...
The best deal for the invididual investor is indexing, picking an AA while accounting for one's risk tolerance, rebalancing, and minimizing costs (the single most important factor determining superior PF performance, according to a number of studies), and staying the course. Since 1920, this has always been the superior approach, and with calculators like FIRECALC, modelling demontrates the approach would work as far back as 1871.

OTOH, for people like you Lbscal with extra $$ to "play with", a great investment might be writing me a check to cover the $3300 I had to drop yesterday to replace a 20 year old bed/mattress. You'll get a guaranteed return of making someone else very happy!
First, I don't know where you get the idea I have "extra $$ to play with". I take investing seriously and don't consider playing a good activity in financial matters. Maybe you got this idea from my "votes" sentences above? I just mean that it's a free financial market and every dollar is a vote on the direction. Institutions probably have the biggest number of votes. I am very small potatoes in that sea of money.

Second, I'm all for Bogleheads ideas and I think most investors would do best to stick with that. However, we are all mature adults here and people are free to form their own opinions. Investing is not a religious activity. I do not think the most forum participants (particularly regulars here) feel they must be saved from the sharks. There are admittedly a lot of naive folks out there (and occasional people who visit this forum) who have unformed ideas on good investing. Again, for those people the Bogleheads buy-hold ideas are best.

Now hopefully we can stop arguing. We probably share more areas of commonality then differences. We should get back to the OP's original intent for this thread. Also my fingers are tiring of this line of dialog.
__________________

__________________
Lsbcal is online now   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 02-08-2014, 01:15 PM   #82
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,387
Quote:
Originally Posted by Lsbcal View Post
First, I don't know where you get the idea I have "extra $$ to play with". I take investing seriously and don't consider playing a good activity in financial matters. Maybe you got this idea from my "votes" sentences above? I just mean that it's a free financial market and every dollar is a vote on the direction. Institutions probably have the biggest number of votes. I am very small potatoes in that sea of money.

Second, I'm all for Bogleheads ideas and I think most investors would do best to stick with that. However, we are all mature adults here and people are free to form their own opinions. Investing is not a religious activity. I do not think the most forum participants (particularly regulars here) feel they must be saved from the sharks. There are admittedly a lot of naive folks out there (and occasional people who visit this forum) who have unformed ideas on good investing. Again, for those people the Bogleheads buy-hold ideas are best.

Now hopefully we can stop arguing. We probably share more areas of commonality then differences. We should get back to the OP's original intent for this thread. Also my fingers are tiring of this line of dialog.
This idea of a varying AA based on some reliable long term value indicator is interesting. The obvious gotcha is that in an equity market moving steadily upward, the closer to 100% equities someone can handle is going to be most profitable. Until the market goes in the other direction, which may be very sudden. Then 0% equities might be optimum.

Today, the Fed seems to be playing the tune that people are dancing to, so it is really hard to know whether past experience is even relevant in the near term. I would guess that eventually it will be, but eventual is quite a concept.
Ha
__________________

__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 02-08-2014, 07:49 PM   #83
Full time employment: Posting here.
 
Join Date: Oct 2012
Location: Reno
Posts: 556
[QUOTE=karluk;1410374]Of all the awful news from back then, the item that most struck home to me was the failure of Washington Mutual, which Wikipedia says happened on September 25, 2008. I would have guessed it happened a little earlier, but most likely that's because rumors of its imminent failure were already circling.

There were two reasons this news made an impression on me. It was the first time in my life that a financial institution failed in which I personally had an account. I had a credit card with them, which at the time was maxed out in a 0% loan.]

We had our checking, savings accounts, our mortgage, as well an equity loan with WaMu and in mid 2007 I convinced my wife to start a Schwab checking and brokerage account because I was fairly certain WaMu was going down, along with several others.I wanted to be sure we could get by for 3-4 months while waiting for the damage to settle. Turns out Chase opened the branch on Monday after closing it from Friday through the weekend.
The Texas S&L crash started right when I graduated from a Texas school and I saw the miniCalifornia real estate crash in 90 begin before we moved back to Texas, so that helped. I also started moving to bonds/cash in late '06, but primarily in '07 to a 40% bond/cash allocation from about a 90% stock beforehand. I remember wondering in early '08 whether I was just missing something, then when Bear-Sterns went down I knew I was probably right. When I heard about money-markets freezing, I got very worried we would see a 30's event.
__________________

__________________
RobLJ 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
Market Correction Allocation ferco Stock Picking and Market Strategy 15 05-05-2013 03:27 PM
Vanguard Not Recognizing Computer -- Anyone Else? TromboneAl FIRE and Money 16 10-28-2010 09:14 AM
Vanguard Not Recognizing my Computer TromboneAl Other topics 37 06-29-2009 04:01 PM
Foreign stock market charts or historic prices summer2007 FIRE and Money 2 07-26-2008 12:15 AM
Market Correction is Official retire@40 Stock Picking and Market Strategy 31 08-17-2007 12:27 PM

 

 
All times are GMT -6. The time now is 09:03 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.