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Old 11-19-2008, 07:38 PM   #21
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Just moved 15% of my portfolio from a large cap growth fund (down ~45% YTD) to a mix of US and international REITS and int'l small cap (all of which are down close to 60% YTD). So I guess I'm willing to take on more risk. Or rather I have moved my permanent asset allocation to what I want it at long term. I didn't do this a few years ago when I set up the "permanent" asset allocation because I thought REITs were overvalued. (yes, yes, I know, market timer, changing permanent allocation, etc. etc.).
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Old 11-19-2008, 08:12 PM   #22
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Bought GE, GOOG, MSFT, and RSU today. Possibly for trades rather than a long term hold. While I have lost a substantial amount of money, I am lucky enough to have some cash left and I am also still employed. Was going to retire at the end of next year (end of employment contract) but now have a second thought even though I think I can still retire with the amount of money that I have left. This bear market is giving me a pause, it shows me what can happen in a short period of time. Make me feel that I need more cushion.

mP
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Old 11-19-2008, 08:20 PM   #23
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This bear market is giving me a pause, it shows me what can happen in a short period of time. Make me feel that I need more cushion.
In a way, I view the current market conditions as a mixed blessing, as they've shown how quickly things can go pear-shaped. This experience will definitely impact my ER planning, how I set my buckets up, and how much cushion I'll need.

As it stands, I've got around 15 years to go, so am still plowing cash into the market. I'm trying to focus less on the value of the shares, than on the share balance.
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Old 11-19-2008, 08:22 PM   #24
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how to survive a possible--the steps we've taken have prevented us from definitely experiencing a complete economic collapse, but we can't say for certain if we've at all avoided a deep & prolonged recession or even a--depression: capitulating on the house to buy into the market, hedging that bet by capitulating on retirement and getting a job.
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Old 11-19-2008, 08:29 PM   #25
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I am getting concerned but I can't envision capitulating right now, i.e. selling equities and going all cash. But I will consider more carefully how to allocate new contributions, maybe invest new money a tad more conservatively.

I am done rebalancing and, as the market goes down further, I will let my asset allocation float and probably not rebalance again. I am still buying equities with new money coming in. I expect a bundle of new money to come in by the end of the year and I will invest that money as well. I expect another bundle of cash early next year and I might keep that one on the sidelines if things look as grim as they do now.

But it is still hard for me to keep a lot of cash around. MMFs are only paying about 2-3% in dividends while munis, corporate bonds, REITs and stocks are paying considerably more right now. I still think that this is a great opportunity to acquire and accumulate more income-producing assets for the future.
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Old 11-19-2008, 09:51 PM   #26
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Still working and still pouring money down the rat hole.
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Old 11-19-2008, 09:56 PM   #27
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I am getting close to lacing my morning coffee that I enjoy when the pre-market opens. The IRA which I am drawing a 72T from is down about 30% from it's summer time high. The 401K is still at Mega Corp and down 40% from the summer but over 50% YTD. I buy and sell a bit each week and try to keep a few stocks in the green. If this keeps up I may have to seek employment late next year. If it stabilizes within the next 10% to 20% I can hang tough and ride it out.

Thank God I built the wetbar into my home office! Just call me the tipsy trader!

PS I forgot the fun account! A baby Roth (2 years of contributions) I started trading in the month of August. Last week it was up over 100% YTD then the losses hit. It is still up 60% YTD. Now if markets calm a good bit I can start growing it and the others again!
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Old 11-19-2008, 09:57 PM   #28
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Old 11-19-2008, 11:31 PM   #29
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I am down 23% ytd! I think there is a lot of capitulation going on. Wish there were more! It would make me feel better about buying! Just prior to close of buisness today- I purchased Citi, BofA, GE,Ford and GM. They are much cheaper than they were.
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Old 11-19-2008, 11:36 PM   #30
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I'm not paying too much attention to the day to day numbers, get most of that info here. Been reading madly working on my asset allocation, trying to understand bonds and also working on my tax situation for this year, seeing if we are poor enough to convert some money to a Roth. Trying to get some info from my soon-to-be-ex FA so I can make good decisions about bailing on the investments I'm in with him in order to move all my (remaining) money over to Vanguard.

I see this situation as an opportunity for me to remedy some poor decisions made over the years. I know it's painful, but since it's happening anyway I'm going to make the best of it.

I'm also sort of hoping this situation does for us (Boomers and later generations) what the GD did for our grandparents. Not scaring them out of the market forever, but teaching them about frugality, LBYM, staying out of debt, and for God's sake, quit believing the advertising industry! I don't know if it will, we're the golden children of God (in our own minds), but we can use the wake up call.

Anyway, as I said, the situation is happening no matter what I want, so I'm going to do the best I can with what I've got.
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Old 11-19-2008, 11:49 PM   #31
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I plan to rebalance at the end of the year and to consolidate funds into a couple of funds, i.e., Vanguard World Index.

It used to be fun to update my portfolio when the market was up. Now I try to avoid updating it.
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Old 11-19-2008, 11:50 PM   #32
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I am down 23% ytd! I think there is a lot of capitulation going on. Wish there were more! It would make me feel better about buying! Just prior to close of buisness today- I purchased Citi, BofA, GE,Ford and GM. They are much cheaper than they were.
They may become cheaper, but they are cheap, however.
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Old 11-19-2008, 11:53 PM   #33
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I won't capitulate until someone turns the lights out.
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Old 11-20-2008, 06:47 AM   #34
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Losses are too great to capitulate now. I did start holding cash and exercised a HELOC to get some extra cash which I am holding as a precaution against job loss. Now that I have enough in hand to tide me over even a lengthy job hunt, I'm back to buying into the market with extra cash. Sometime I want to think about changing my asset allocation to be more conservative, but until then my stock allocation is way down from target, so that's where the new money goes.
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Old 11-20-2008, 07:54 AM   #35
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Even though it feels seems like this:



I will stick it out...
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Old 11-20-2008, 08:39 AM   #36
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If I had lost a 10th through gambling of what I am down in the market, I would consider myself a gambling addict and find a clinic to check myself into.

yet this is considered "investing" and so much more respectable!

I can see myself standing in front of a group of folks...

Hello, I'm Mike and I am an investor...

Group reply... "Hello Mike.."

Guess I'm not cured yet. I've been sticking it out. (But tomorrows going to be great! Right? Hello? Right?)
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Old 11-20-2008, 09:21 AM   #37
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I'm with the "still working and pouring money in" crowd. My distaste for selling equities for cash that I don't need right now is much worse than it is for possibly having to work longer before I retire.
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Old 11-20-2008, 09:25 AM   #38
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People have been saying for years that the Baby Boomers would take the market lower when they started to retire because they had so much money in the equity market. Makes me wonder how much of this continuing drop is from BB heading for the sidelines.

I've stumbled into my own "sleep better" AA. I say stumbled because it all occurred in a random way through thinking of asset money differently depending on how I acquired it.

Bucket one, 401K, which is now a 201K: Gave about 25% (12% assets) to Fido to manage in a growth AA and stopped obsessing about it. Yea, they charge for that, but that fee seems small compared to the overall drop. And I did it to see if I could beat the experts in a down market. So far, I'm ahead of them about 1-2%.

Bucket two is the rest (28% assets) of the 201K money: well allocated in equities, foreign and domestic; REITS, foreign and domestic; emerging markets; commodity futures; and cash, for additional purchases when the market drops (I never imagined THIS much drop though, but I've been easing the cash money into the market on drops).

Bucket three, after tax money (35% assets): ten years of cushion I think, depending on inflation rate. Although this is way too much in cash, I think of this as my "sleep better at night" money. I need to find some better income instruments for this bucket, but it's hard to catch my breath while the roller coaster is dropping like it is.

Bucket four, rental property (20% assets? who knows): this one has been one of the wisest moves I've made, and it's the only active decision I made. It spins off lots of my expense covering income while paying off the loans with other people's money. How cool is that! Of course it redefines what retirement means. This one causes more restless nights than the market from collecting rent, general maintenance and repairs. But as I've said before, you gotta do something in retirement.

Bucket five, pension ( non-COLA'd): not much to fret over here. I'm deferring it until 65 to get 100%. That way I can stick it to the old company once more. Of course if they go under, I'm the stuckee. You roll the wheel and takes your chances I suppose.

Bucket six, social security: I'm waiting until 66 unless I find that I'm burning off too much cash to cover expenses. So far, so good.

Bucket seven, gold/silver/EE bonds and misc IRA's and ROTH IRA's (~5%): just in case the fed monetizes the debt and dollar out of virtual existence.

I haven't seen this kind of AA anywhere, but it allows me to sleep. I notice the market is dropping again this morning. I think we're entering a zone where overall market values are rapidly over-correcting. It's probably a good time to buy if you can overcome Mr. Fear. Sorry for the novel-sized entry, but it's too cold to go outside yet.
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Old 11-20-2008, 09:35 AM   #39
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It's way to late to pull out of equities at this point. On the up side (of the downward slide), we're loosing less and less with each market drop. So, we'll ride this one out... we have at least another 10 yrs to go (optimistically looking).

At this point, our holdings are approximately 80% equities and 20% cash/stable value. Our contributions are set as 100% equities. I just finished re-balancing and I will not be doing any additional re-balancing for a long long time, regardless of the market movements. At this point I don't have any fixed instruments I can part with - the stable value is non-exchangeable within my 401k and I am holding on to the rest of the cash (in out taxable account) as an extra precaution (in addition to our emergency funds) in case of unemployment. In case of the up-swing, we'll let equities grow as much as possible.
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Old 11-20-2008, 09:39 AM   #40
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If I had lost a 10th through gambling of what I am down in the market, I would consider myself a gambling addict and find a clinic to check myself into.

yet this is considered "investing" and so much more respectable!
Well many people believe investing in stocks is gambling.

You just wait, desire to be an early retiree will soon be listed as a disorder in the DSM. Aphetamines will be prescribed along with forced labor. Therapy will be ongoing, both individual and group. "Hello may name is Pete and I have a problem"

It's surely coming because somebody will make money on the medical care and scholarly research around it.
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