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Old 11-14-2015, 10:29 AM   #21
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Listen to the wisdom of those who've posted already.

And here's an anecdote: Back in the late 90's, I remember talking to a fellow who was the customer service interface (he didn't really 'sell') to a fixed-rate annuity we were investing in. He commented that younger people, who'd never seen a down market, were going to be shocked when corrections finally occurred. Then 2001 happened....

So this is nothing new, and you'll see it over and over. Stay the course.
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Old 11-14-2015, 11:39 AM   #22
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Keep saving and investing the way you are and by the time you're 60 you'll be seeing market swings of about what your NW is today. Stay the course and listen to the advice of the good people here.


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Old 12-27-2015, 10:14 AM   #23
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This is how I felt in 2008 when the stock markets tumbled. My net worth was in the $250,000 - $300,000 range and I was in my late 20's at the time.

I now check my net worth on a monthly basis and I've learned not to watch CNBC every morning.
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Old 12-27-2015, 10:41 AM   #24
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I think it is very important to prepare yourself for what will be much larger fluctuations in the market than we've had recently. This little recent dip is tiny in the big picture.

Look at a longer term chart and realize that you need to be prepared for 50% drops over a period of several years. You might not see a drop like 2008-2009 again (knock on wood), but you have to expect something like 2000-2003.

Given your net worth, the next ugly market will probably lead to six-figure losses in your net worth. You have to buy through it. If you are going to get frustrated and sell in a downturn, it is better to sell down to a more comfortable level now.

On the plus side, buying through 2008-2010 probably advanced our retirement plans 5 years. It doesn't feel good to be buying in a bear market, but it usually ends up being profitable in the long run.
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Old 12-28-2015, 06:43 AM   #25
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My brain is telling me that I want to see growth in my account...
But I would probably be better off if we had a lukewarm market to buy shares in while accumulating and then get into a strong market once I ER.
That would allow you to buy shares cheap and see them take off once you retire.
Just keep saving, I have gotten to the point where the market fluctuations create swings 2x my annual contributions. It'll just get worse the more you accumulate.
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Old 12-28-2015, 08:07 AM   #26
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I am not that disappointed with 2015. It has been a nice run since the March 2009 lows. Also, real estate is a big part of my plan so I am not relying solely on how the market does. It didn't used to be that way. I feel like I know more now about the process than I did in years past.
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Old 12-28-2015, 08:29 AM   #27
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I'm actually kind of glad about this year as my first year of retirement. As it helps me feel more comfortable that my plan is going to work. Its one thing to say you have a plan, its another to stay the course.. ie especially when I was down 6 figures at one point...with no income coming in.. which was the first time I was truly tested. I was about where you are during the 2001 crash, learned my lessons and went into 2008 much more prepared and came out much better off for it. When your working is really the time to determine if your comfortable with your strategy, good or bad markets. ie if you can't handle swings, will you be forced to put your money into less risky investments and then can you live with having the lower returns and does that work with your plan?
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Old 12-28-2015, 09:05 AM   #28
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Nah, you wanna talk about frustration, you should have been around the second half of 1987!!!

Just be patient. Keep on investing regularly and use the down turns to pick up some bargains. If you still find it too frustrating, then as others have suggested, don't check your Mint account every day.
jsal7, you are partly suffering from trend bias. The human brain has a tendency to presume that a going trend will always continue. Over most of your investment experience, you did not have to wait more than a few months to see your NW rising, so when you ran into a flat year (not unusual over the long term) it felt bad. For you and anyone else, I recommend the book Your Money and Your Brain by Jason Zweig.

I strongly concur with the many replies that your have gotten here. Lots of good advice. Try looking at a chart of the stock market since 1900. There have been periods much longer than a year where the market went nowhere, such as 1966 to 1982.

Like Ian, I have had to watch my investments during 2H 1987, 2H 1990, 2000-2003, and 2007-2009. Big losses are much worse than no progress. For this year, even if the indexes are flat we still got the dividends.
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Old 12-28-2015, 09:34 AM   #29
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If you cannot handle a flat market, you are in for a big surprise some year...


I saved quite a bit myself. Every time I added an amount, it seemed to go away. Keep the faith, it will work out.
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Old 12-28-2015, 10:05 AM   #30
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I'm actually kind of glad about this year as my first year of retirement. As it helps me feel more comfortable that my plan is going to work. Its one thing to say you have a plan, its another to stay the course.. ie especially when I was down 6 figures at one point...with no income coming in.. which was the first time I was truly tested.
What a great perspective! "If my plan works now in this flat market, it'll work through anything"

Sort of the view I had during the 2008-09 mess. "Well, (almost) the worst has happened and we're still ok....."
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Old 12-28-2015, 01:20 PM   #31
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Sometimes you're the bug and sometimes you're the windshield. In the long run, the turtle wins the race.
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Old 12-28-2015, 03:28 PM   #32
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In the 1970s, my father was working for P&G, and had been since 1950. They kept putting P&G stock away for him, and it really didn't do much until 1982. Then a nice 7 year run-up before his retirement in 1989, and all of those years of putting cheap stock away that didn't appreciate much, made him a wealthy retiree.
My cousin-partner and I ran a business together and we were both savers. The years from 2000- 2008 were not "good" years for watching our NWs "grow", in dollars, but we kept putting our maximums away in our pension-401k plan, more or less buying "on the cheap", then when the upturn hit, we did great. Just like my old man.
Keep saving, stay diversified, and when things get out of whack re-balance...I think you'll do great.
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Old 12-28-2015, 03:47 PM   #33
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If it is any consolation;
As of mid-December 2015, Berkshire Hathaway’s (BRK-B) equity has declined by 15% over the past one year, compared to the 2% decline of the S&P 500 (SPY). Historically, the company has delivered performance at par or above the index.

http://finance.yahoo.com/news/berksh...QDBHNlYwNzcg--
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Old 12-28-2015, 07:40 PM   #34
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If it is any consolation;
As of mid-December 2015, Berkshire Hathaway’s (BRK-B) equity has declined by 15% over the past one year, compared to the 2% decline of the S&P 500 (SPY). Historically, the company has delivered performance at par or above the index.

http://finance.yahoo.com/news/berksh...QDBHNlYwNzcg--
Hey - opportunity!
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Old 12-28-2015, 09:25 PM   #35
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Is anyone else going through these tough feelings? Would be great to hear I am not alone in feeling this "stuck in the mud" feeling.
They say that nothing is certain but death and taxes, but there's another thing that is just as certain: That the market goes up, and the market goes down, again and again.

It's hard to not react emotionally to market changes. But I find I am a better investor when I follow a plan, rather than responding emotionally to market events.

So, I tend to look back at similar times and tell myself, "yeah right, it's nowhere NEAR what we went through in 2008!" Then I go back to enjoying life and just put off worrying about it. By the time I get around to it, the market will be back up again.
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Old 12-29-2015, 07:22 AM   #36
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Listen to the wisdom of those who've posted already.

And here's an anecdote: Back in the late 90's, I remember talking to a fellow who was the customer service interface (he didn't really 'sell') to a fixed-rate annuity we were investing in. He commented that younger people, who'd never seen a down market, were going to be shocked when corrections finally occurred. Then 2001 happened....

So this is nothing new, and you'll see it over and over. Stay the course.
So true..I was one of those younger people who found out the hard way...now I hear young professionals who have been out of school since 2008, or 2010 say things like "well, I KNOW I can make 12% a year in the market, so why should I ....blah blah blah...."....ok.....
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Old 12-29-2015, 02:23 PM   #37
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So true..I was one of those younger people who found out the hard way...now I hear young professionals who have been out of school since 2008, or 2010 say things like "well, I KNOW I can make 12% a year in the market, so why should I ....blah blah blah...."....ok.....

I had a coworker who was planning the future value of a deferred compensation account and wanted me to set up the spreadsheet to model it. He insisted that the investment returns had shifted to a13% average return based on the long term averages! I pointed out that 10% was the long term average and the any change was due to the recent abnormal returns. He denied it. That was 1999, and the subsequent returns have returned the averages to the long term averages! Btw, the 15 year average return was 12%, but he left in Feb 2009 with a return of 3%!


Have the day you deserve, and let Karma sort it out.

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Old 12-29-2015, 02:39 PM   #38
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I'll have one helluva nice retirement if I can average 10%...but I'm crossing my fingers and hoping my 4% WR will last till I croak.
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Old 02-05-2016, 03:02 PM   #39
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Well, after a brutal January (and February so far!), I find myself coming back to this thread. Instead of having a pit in my stomach, I read, digested and embodied all of your advice, and decided to look at this year as the year I really socked it away. Bought alot of equities at a low low price, and will look back at this as one of the best of the early years as far as seed money goes for my retirement.

32 years old, I guess I have a long @$$ time to go!!!
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Old 02-05-2016, 03:48 PM   #40
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32 years old, I guess I have a long @$$ time to go!!!
Maybe not, if you keep buying equities when they are on sale.
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