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Time to revisit club membership$?
Old 01-21-2016, 11:15 AM   #1
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Time to revisit club membership$?

The market has been messing with us this year - we entered 2016 within striking distance of a meaningless dollar amount net worth - closing in on a new seventh figure. Market fell, we bought. Market fell more, we bought again. Rents came in, our net worth still declined. Thanks Mr. Market!

Reminded me of times past and was just revisiting some early 2009 posts as I recalled posters proclaiming their memberships in the seven-figure club or the 200 club. Not looking forward to that kind of membership - losing over $10,000 in a day is plenty invigorating enough for me. I do have two 60 day VTI buy orders in for stupid amounts, 'cause why not.
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Old 01-21-2016, 11:52 AM   #2
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Good point you've made to revisit some of those old threads from before and after the last "unpleasantness". It does help keep perspective, for sure. That's one of the real gems of a space like this, the vast archive of information, there for the taking.

I will say that my personal superstitions is to just not utter the actual numbers of my losses out loud (or typed). Makes it less traumatic, somehow. So I'm not going to apply for membership in any of the clubs!
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Old 01-21-2016, 12:04 PM   #3
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My 2016 losses put me firmly in the Multiple Dream Houses Club, Net Outlay Division.

But hey, it's all good. The market goes up, the market goes down. The sun rises in the east and sets in the west. Now, I would REALLY be worried if the latter was reversed.
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Old 01-21-2016, 12:07 PM   #4
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My 2016 losses put me firmly in the Multiple Dream Houses Club, Net Outlay Division.

But hey, it's all good. The market goes up, the market goes down. The sun rises in the east and sets in the west.
Exactly. If that ever changes, no amount of planning will suffice...

The DJ was lower than this just last Aug, what short memories "we" have...
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Old 01-21-2016, 12:08 PM   #5
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Exactly. If that ever changes, no amount of planning will suffice...
ROFL!!! GMTA ("Great Minds Think Alike"). I edited my post saying somewhat the same thing, while you were writing the above.
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Old 01-21-2016, 03:49 PM   #6
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Originally Posted by calmloki View Post
The market has been messing with us this year - we entered 2016 within striking distance of a meaningless dollar amount net worth - closing in on a new seventh figure. Market fell, we bought. Market fell more, we bought again. Rents came in, our net worth still declined. Thanks Mr. Market!
....
Have you ever looked at how your strategy would have done in 1930 and forward? I'm not saying it will happen again. Just that it could and one's investment strategy should take all possibilities into account.

Actually I'm optimistic for the intermediate term future but I won't bet on my gut feelings.
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Old 01-21-2016, 03:53 PM   #7
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My 2016 losses put me firmly in the Multiple Dream Houses Club, Net Outlay Division.

But hey, it's all good. The market goes up, the market goes down. The sun rises in the east and sets in the west. Now, I would REALLY be worried if the latter was reversed.
Word has it that we on Earth have 5 billion years until it's all over. Enough time for our net worth's to grow substantially.
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Old 01-21-2016, 06:32 PM   #8
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Have you ever looked at how your strategy would have done in 1930 and forward? I'm not saying it will happen again. Just that it could and one's investment strategy should take all possibilities into account.

Actually I'm optimistic for the intermediate term future but I won't bet on my gut feelings.
"Strategy". Ours is to try and do good and do well. The gal and I wrestle out what we will do, which probably is for the best as we temper each other's exuberances. I tend not to spend, she likes not to risk; which means we end up sitting on too much cash. Over the last year we, at my insistence, increased our market holdings by 2.6 times. Just in time to make nothing, followed by this year's downturn. The gal is being awful good about not pointing out that the cash in Barclays and Discover did better than our market adventures. well, she doesn't mention it very often.

I'd like to have about a third of our NW in the market; we can live on what the rentals bring in, the remaining third of NW can be in our houses and fund our lending adventures.

Strategy - "agile,mobile, and hostile" we ain't. I'm sorta like the river - flow around obstacles or wear them down. The gal is more like a cross between a Jack Russell terrier and a Big Horn ram - endless enthusiasm and a willingness to just keep smacking into a problem till it gives way. 'Twixt the two of us our strategy - do well, don't be stupid, persist - probably does pretty well in any scenario.
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Old 01-21-2016, 06:38 PM   #9
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I lost a comma in the early 2000s. That hurt. It taught me some lessons though, about things like diversification.
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Old 01-21-2016, 06:55 PM   #10
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I lost a comma in the early 2000s. That hurt. It taught me some lessons though, about things like diversification.
Commas are free, it's the zero after the most significant digit I worry about.

P.S. l like your comma reference.
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Old 01-21-2016, 07:00 PM   #11
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Calm-low-key (calmloki), took awhile but I finally got your cute login.

I think you and your mate should get together, perhaps with the help of an advisor, and really pound out an AA. Maybe something along the 30/70 or 40/60 line. Cash is not very productive for future long term returns. I know, it is that dry powder idea but that may be a costly idea. Balanced funds like Wellesley don't have much cash ... must be some reasoning there.
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Old 01-21-2016, 07:05 PM   #12
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LOL. Still haven't quite "lost a comma" yet, but I've lost about half of my margin above "comma loss" in the last three weeks or so. IOW, another three weeks like the last, and yeah, a comma is gone.
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Old 01-21-2016, 07:43 PM   #13
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Comma loss is awesome (actually, not). I'll keep that in mind for perspective!
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Old 01-21-2016, 09:36 PM   #14
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That was the club nobody was eager to join back in 2008:

Anyone else want to join the "Lost over a million" club?
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Old 01-21-2016, 09:50 PM   #15
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I lost a comma in the early 2000s. That hurt. It taught me some lessons though, about things like diversification.
I lost enough for an ocean front condo & it taught me to have a two year cash buffer .
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Old 01-21-2016, 10:15 PM   #16
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Hey, we are all safe, well fed and live in a country where we don’t have bullets flying over our heads. Overall, I think things are pretty good. We might need to cut back on the travel a bit this year. Sacrifices must be made!
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Old 01-22-2016, 07:20 AM   #17
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The market has been messing with us this year - we entered 2016 within striking distance of a meaningless dollar amount net worth - closing in on a new seventh figure. Market fell, we bought. Market fell more, we bought again. Rents came in, our net worth still declined. Thanks Mr. Market!

Reminded me of times past and was just revisiting some early 2009 posts as I recalled posters proclaiming their memberships in the seven-figure club or the 200 club. Not looking forward to that kind of membership - losing over $10,000 in a day is plenty invigorating enough for me. I do have two 60 day VTI buy orders in for stupid amounts, 'cause why not.
Same here. My rents were keeping up with the market for 2015, mostly. In 2016 they are not. I did lose some major milestones in 2016.

Feel lucky that you are only losing $10K a day...

I keep buying. Thankfully we both have rents coming every month. If not for the rents, I would think about OMY. Actually, if not for rents, I would likely be in the regular retirement club, not early.
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Old 01-22-2016, 08:32 AM   #18
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That was the club nobody was eager to join back in 2008:

Anyone else want to join the "Lost over a million" club?
Thanks for posting that thread. From that thread.

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I don't mind joining the lost a million club, it is losing the multi-millionaire status which is painful.

I always want my own game show with a bunch of hot woman, scheming to get their hands on my money.

The silver lining is that my dividend and income has dropped only modestly this year, despite some painful cuts because I also had a more companies raise dividends than cut.

Dow 15,000 by 12/31/2013
clifp for the win.
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Old 01-22-2016, 09:03 AM   #19
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Indeed, that old thread is a gem! And clifp, definitely FTW!
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Old 01-22-2016, 09:13 AM   #20
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Have you ever looked at how your strategy would have done in 1930 and forward? I'm not saying it will happen again. Just that it could and one's investment strategy should take all possibilities into account.

Actually I'm optimistic for the intermediate term future but I won't bet on my gut feelings.
Yes, I think Firecalc has done that for me and I'm good. Now if it's worse than in 1930 , who knows?
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