Join Early Retirement Today
View Poll Results: How are you handling the Financial Crisis and its impact on you
Emotion [Very Worried] - [Impact] Standard of Living is going to drop in a big way 6 3.70%
Emotion [Very Worried] - [Impact] No Standard of Living drop 7 4.32%
Emotion [Worried] - [Impact] Standard of Living is going to drop Modestly 52 32.10%
Emotion [Worried] - [Impact] No Standard of Living is going to drop 33 20.37%
Emotion [Not Worried] - [Impact] Standard of Living is going to drop slightly 28 17.28%
Emotion [Not Worried] - [Impact] No Standard of Living is going to drop 36 22.22%
Voters: 162. You may not vote on this poll

Reply
 
Thread Tools Search this Thread Display Modes
Old 12-01-2008, 07:08 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,386
I was truly not pleased by today's market action. Death of a thousand cuts; each one a really big ugly slash oozing blood.

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
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 12-01-2008, 07:17 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,438
Quote:
Originally Posted by haha View Post
I was truly not pleased by today's market action. Death of a thousand cuts; each one a really big ugly slash oozing blood.

Ha
I was not surprised. Gave back most of last weeks gains. Sucks.
__________________

__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 12-01-2008, 07:30 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,431
Yep. It set me back 1 week. Let's see what tomorrow brings.

I don't understand how people can avoid looking at their portfolio. Being more in individual stocks than MFs right now, I have the stock screen of Microsoft Money up all day to monitor, though I do not daytrade. I've just got to know.

PS. Oops, it's called morbid curiosity.
__________________
NW-Bound is offline   Reply With Quote
Old 12-01-2008, 08:26 PM   #24
Thinks s/he gets paid by the post
lazygood4nothinbum's Avatar
 
Join Date: Feb 2006
Posts: 3,895
why worry, hasn't the bad news already been priced into the market?

Dow plunges on news recession began in Dec. 2007 - Yahoo! News

Quote:
Dow plunges on news recession began in Dec. 2007

WASHINGTON – Most Americans sorely knew it already, but now it's official: The country is in a recession, and it's getting worse. Wall Street convulsed at the news — and a fresh batch of bad economic reports — tanking nearly 680 points.


fire ain't nothin' but a crapshoot.
__________________
"off with their heads"~~dr. joseph-ignace guillotin

"life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901
lazygood4nothinbum is offline   Reply With Quote
Old 12-02-2008, 04:09 AM   #25
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,544
Worried, but no impact.

"Worried" is overstated - "carefully watching" is more accurate.

We have a DB COLA'd pension but if that goes away we're in deep doo-doo. Not right away, we have 4-5 years of living expenses saved, but still....
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 12-02-2008, 09:33 AM   #26
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,905
I am not retired yet (so I did not vote), but do plan to retire next November. My investments are pretty much in place. I would have voted "worried but no impact", I guess, though "all of the above" would apply depending on my mood du jour.

Looking at my dividends for the past half year, and assuming no change in portfolio size (yeah, I know....), on just dividends and not dipping into my cash reserves I will be able to spend over 40% more after ER than I have been spending on average during the last few years.*

BUT - - We may not have hit bottom yet. Also, who knows - - dividends might be cut a lot, too, and that could reduce my projected income. So, I will probably try to keep my spending down if the market continues like this, just in case. This is for emotional, not financial reasons since it will allow me to feel like I am doing something about market effects on my portfolio. If the market continues to recover, I'll spend more.

* The exact amount depends on my tax rate. As always, I am only counting on 70% of all income being left after taxes, which is probably way overly pessimistic. And yes, I am not spending much right now but I am used to that and anyway I don't have a lot of time to shop or enjoy my purchases due to w*rk. And, I didn't count the money I gave my daughter a couple of weeks ago for her wedding and/or honeymoon, since we agreed that is a one-time expense.
__________________
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 12-02-2008, 09:41 AM   #27
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
I am seriously worried about my relatives that must work and have jobs that may be lost because of the recession.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 12-02-2008, 09:46 AM   #28
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,905
Quote:
Originally Posted by Martha View Post
I am seriously worried about my relatives that must work and have jobs that may be lost because of the recession.
Absolutely!! I'm even really worried about people that I don't even know who must work and who might lose jobs. I know first hand what it is like to need work and have no job and that is terrible. However, I didn't think that was relevant for this particular poll so like others, I didn't mention that. Maybe I was wrong.
__________________
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 12-02-2008, 09:58 AM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
Quote:
Originally Posted by Martha View Post
I am seriously worried about my relatives that must work and have jobs that may be lost because of the recession.
this is very similar to the conditions when i graduated from college in 1980. it wasn't pretty. but people who want to work will always find something. let's hope things improve.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 12-02-2008, 12:52 PM   #30
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Quote:
Originally Posted by Martha
I am seriously worried about my relatives that must work and have jobs that may be lost because of the recession.

yeah, same feeling for my tenants ... need them to stay employed, too.
__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Old 12-02-2008, 05:28 PM   #31
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,977
Quote:
Originally Posted by Martha View Post
I am seriously worried about my relatives that must work and have jobs that may be lost because of the recession.
Me too, my advanced-middle-aged single sister works at Citi...ouch.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 12-02-2008, 06:16 PM   #32
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: 6,430
I'm not sure that the pension vs. individually financed FIRE issue really matters that much. I don't have a pension, all my income comes from my various investments. I am required to manage those investments, but that process isn't all that onerous. I have a decent income pretty much guaranteed by my well diversified investments. If things were to go to hell enough that I couldn't count on that money (after exhausting my multi-year cash supply first), I doubt very much that most non-gov't pensions would be worth much. I also suspect that in the above situation gov't pensions wouldn't be all that dependable either. We'd be looking at a total chicken little collapse. The gov't would be printing money 24x7, while claiming 3% inflation for the COLAs.

I voted slightly worried with a small decrease in lifestyle. My worry is for my family and friends, especially my DD who is just starting out. However, like Freebird said, things aren't all that much different than in the early 80s, when I was starting out myself. If you want to work, there's usually something available. And as I remember, after those first few tight years the raises got bigger to counter inflation, and opportunities were everywhere for those willing to step up.

My decrease in lifestyle is mostly just emotion/common sense. When things get tight, it never hurts to tighten the belt a bit. Who needs to eat out 5 times/week? It just creates a little leeway, which I can use to help out DD and DGD if things go way south for them.

JMO.
__________________
"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 online now   Reply With Quote
Old 12-03-2008, 12:31 PM   #33
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,977
Quote:
Originally Posted by harley View Post
I'm not sure that the pension vs. individually financed FIRE issue really matters that much. I don't have a pension, all my income comes from my various investments. I am required to manage those investments, but that process isn't all that onerous. I have a decent income pretty much guaranteed by my well diversified investments. If things were to go to hell enough that I couldn't count on that money (after exhausting my multi-year cash supply first), I doubt very much that most non-gov't pensions would be worth much. I also suspect that in the above situation gov't pensions wouldn't be all that dependable either. We'd be looking at a total chicken little collapse. The gov't would be printing money 24x7, while claiming 3% inflation for the COLAs.
Having a COLA'd pension & retiree health care would sure reduce risk. Pensions pretty much remove longevity and investment return risk. Those of us with self-managed retirement nest eggs pretty much have to plan on inferior returns and beyond average longevity or face plan failure.

Inflation risk, which you identify, hits SIRE & FIRE equally --- not a distinction IMHO.

We're all in trouble if there's some sort of catastrophic economic failure though, so a moot factor.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 12-03-2008, 01:29 PM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,035
Quote:
Originally Posted by Want2retire View Post
. And, I didn't count the money I gave my daughter a couple of weeks ago for her wedding and/or honeymoon, since we agreed that is a one-time expense.

Congratulations on your daughter's wedding . I cried when I took my daughter to try on wedding gowns . It was so emotional . I also contributed a lump sum and bought the dress ,veil & tiara . Money well spent . The next one time expense will be outfitting the nursery .
__________________
Moemg is offline   Reply With Quote
Old 12-03-2008, 01:53 PM   #35
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,905
Thanks, Moemg. I am so happy for both of them! He proposed to her about a month ago on top of the Space Needle in Seattle, with the lights of the whole city below them and the stars above, which I thought was SO romantic. He even had the ring and did the whole bended knee thing, and the ring actually fit.

I told her she could spend the money on a fancy wedding, honeymoon, new car, partial down payment for a house, or whatever. She is absolutely dying to go to Japan for their honeymoon, but they are discussing it. I flew out to Oregon two weeks ago to see them, and it is fun to be around people who are so happy!

I don't know if they plan to have kids, or not. (They haven't even set a date for the wedding, yet.) But if they do, then I guess I can afford a crib. Imagine me, "Granny W2R"!!
__________________
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 12-03-2008, 05:13 PM   #36
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,884
In a couple of years from now we'll all look back on 2008 and claim that we rode it out with no emotions and stayed the course. Some will have lied to themselves.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 12-03-2008, 07:01 PM   #37
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,386
Quote:
Originally Posted by mickeyd View Post
In a couple of years from now we'll all look back on 2008 and claim that we rode it out with no emotions and stayed the course. Some will have lied to themselves.
It seems that most of us, maybe even all of us, have not been net sellers of stock during this downturn. As for emotions, no shame in being shaken up by some of these huge drops.

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 12-04-2008, 12:42 PM   #38
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
I'm not really worried even though I won't be able to do some big ticket items until the market comes back. Worst part is I'm not getting any younger so the timing of this setback sucks and to add insult to injury I didn't even need to have as much in equities as I had. Let that be a lesson to ya Sonny.

I have a pension and will collect SS next year. Between the two they will provide 60% of my normal living expenses and my portfolio should kick off enough to more than cover the remaining 40%. So now I just wait to party.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Old 12-04-2008, 01:37 PM   #39
Thinks s/he gets paid by the post
 
Join Date: Dec 2007
Posts: 4,764
Quote:
Originally Posted by mickeyd View Post
In a couple of years from now we'll all look back on 2008 and claim that we rode it out with no emotions and stayed the course. Some will have lied to themselves.
I have emotions. I was so frozen with fear I stayed with my original plan. Maybe years from now Ill wish I panicked made the smart move and went to cash.
__________________
Notmuchlonger is offline   Reply With Quote
Old 12-04-2008, 01:50 PM   #40
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,035
What bothers me that during the tech boom I started feeling uneasy and bailed out of the high flying tech stocks so how come I did not see it coming this time ? Was it just greed that motivated me to stay put or overconfidence in the market ?
__________________

__________________
Moemg 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
The Financial Crisis -- The Aftermath chinaco FIRE and Money 30 10-29-2008 09:31 AM
Financial crisis effect on muni bonds mark500 FIRE and Money 4 09-23-2008 09:31 PM

 

 
All times are GMT -6. The time now is 11:33 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.