Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
So how is YOUR stomach this week?
Old 09-23-2008, 09:40 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,293
So how is YOUR stomach this week?

THIS is why I am 50/50 US/foreign.

Actually, I was in hospital with appendicitis the week of the crash, so my corporeal stomach is rather unsettled, but my financial stomach is quite calm.

I did my research years ago and picked asset classes that I am comfortable with for the long run (mostly index funds). I rebalance every year or so. I pretty much ignore wild rides like this. (I did add a few grand to the Vanguard Energy Index this week. Too cheap to pass up. ) I am only concerned with ten-year stretches, but I am starting to build a 5-year CD ladder. If I retire in 5 years, OK. If I continue to work, I just buy another CD.

You, too, can sleep well:
1) Choose asset classes as uncorrelated as you can that pay. (There are many uncorrelated asset classes that don't pay well in the long run.)
2) Fund them in reasonable proportions.
3) Rebalance every year or two.
4) Expect downturns that may last as long as 5 or 10 years.

You don't lose money until you sell. I am down a fair amount, but I haven't lost a cent. I am still way ahead of where I was 6 years ago. I expect my poke to recover and more.

Don't panic.

Gypsy,
with a positive report on Alberta Health Care's emergency service.
__________________

__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy 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 09-23-2008, 09:42 PM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,078
Ed, glad to hear everything came out all right.
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 09-23-2008, 09:57 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,293
Thanks, REW. All systems go.

I have pictures.... I think they used a shovel.

Now, when is there going to be a neck-tie party on Wall Street? Just because I am unfazed doesn't mean I don't want blood.
__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Old 09-23-2008, 09:59 PM   #4
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,866
Glad to hear that emergency services came through for you; and equally good to hear a positive attitude about AA.
__________________
CuppaJoe is offline   Reply With Quote
Old 09-23-2008, 10:10 PM   #5
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,846
Wow! What an awful experience. At least you probably missed all the panic and such.

I am not feeling a lot of panic, though I do wish the market would settle out and start gaining steadily some day.

You are sensible to say that you haven't lost until you sell. But still, it seemed like it took a long time for people to recover their losses from the tech stock fiasco a few years back, and catch up with inflation.
__________________
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 09-23-2008, 10:12 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Somewhat plump.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 09-23-2008, 10:20 PM   #7
Full time employment: Posting here.
 
Join Date: Feb 2008
Posts: 920
Appendicitis is the standard thing I think of whenever I read something about someone who lives on some remote island that can only be traveled to by boat.

Good to hear it worked out ok... now let's get those tonsils scheduled.
__________________
tuixiu is offline   Reply With Quote
Old 09-23-2008, 10:21 PM   #8
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Ed,

Hope that the recovery be quick without any complication.

As W2R says, I too hope for market recovery soon.

Spanky
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Old 09-23-2008, 10:25 PM   #9
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,037
My stomach had been aching for the past year. As it turns out, it wasn't because of the market! It was gastritis. But now that I am on meds, things are a lot better!

I have been pretty "happy" with the performance of my low correlation portfolio over the past year, it has held up pretty well. I keep investing money on a regular basis, as usual. Not panicking... yet.

But I was wondering, how did a 50/50 US/foreign allocation help you? Didn't the foreign markets drag your returns down? It sure dragged mine down...
__________________
FIREd is offline   Reply With Quote
Old 09-26-2008, 09:19 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,293
FIREdreamer,

50/50 sagged, too. It is just a matter of personal policy that I split it up this way. It is on autopilot and I am not going to analyze it just now. I am too busy at the moment. More later.

Glad you got good meds. A fat portfolio isn't any good if'n you is dead.

tiuxiu,

Yeah, now I can go live on that little rock in the San Juans! The tonsils are long gone (50+ years now).

The idea of being in the middle of nowhere with the onset of a serious health problem has been something I have had in the back of my mind for years. I have been taking that into account in my retirement location musings. It changes the way I look at things.

Cheers to all.

Gypsy
__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Old 09-26-2008, 09:30 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
 
Join Date: May 2008
Location: Following the nice weather
Posts: 6,422
Quote:
Originally Posted by Ed_The_Gypsy View Post
Now, when is there going to be a neck-tie party on Wall Street? Just because I am unfazed doesn't mean I don't want blood.
I agree. It's time for the peasants to break out the pitchforks and torches. "A riot is an ungly thing... . undt, I tink, that it is chust about time ve had vun."
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Will Rogers, or maybe Sam Clemens
DW and I - FIREd at 50 (7/06), living off assets
harley is offline   Reply With Quote
Old 09-26-2008, 09:34 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,293
W2R,

My pot survived the tech crash very well. Slice-and-dice index funds helped a lot. This downdraft hit me harder, but I am still way ahead of where I was 6 years ago.

I got bit with a tech stock in the very early days of personal computers (~1975). A cheap lesson. I learned that I had no business buying individual stocks, particularly ones without cash flow or earnings.

I hope things go well down there south of the border. Business is good for me up here. There are so many exciting things coming my way. Opportunities are everywhere up here in Alberta. I am having way too much fun.

Cheers,

G
__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Old 09-27-2008, 09:21 AM   #13
Thinks s/he gets paid by the post
Helen's Avatar
 
Join Date: Oct 2004
Location: Portland
Posts: 1,343
Quote:
Originally Posted by Ed_The_Gypsy View Post
W2R,

I got bit with a tech stock in the very early days of personal computers (~1975). A cheap lesson. I learned that I had no business buying individual stocks, particularly ones without cash flow or earnings.
I'm happy for you that you learned your lesson early. I learned mine during the tech crash and lost quite a bit.

I was sitting with a 60/40 portfolio before this meltdown. I'm putting all new money into stocks.
__________________

__________________
Helen 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
Hello - ER Next week Ydog Hi, I am... 6 07-26-2007 01:39 PM
Last week Coffee - This week donuts chinaco Other topics 23 05-20-2007 01:40 PM
Update week two of my 13 week sentence in Newark,NJ newguy88 Life after FIRE 14 09-17-2006 04:44 PM
62 next week johnbb Hi, I am... 2 07-12-2006 07:02 AM

 

 
All times are GMT -6. The time now is 05:19 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.