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Old 02-06-2016, 05:04 PM   #41
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32 years old, I guess I have a long @$$ time to go!!!
It sure feels like that, doesn't it?

I am 32 and saving $40k per year as well, but at 0% real return it'll take me 30 more years to get to my FI target.

While I'm slightly more optimistic at 2% real future returns, it wouldn't surprise me if we saw 30 years of 0% returns.
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Old 02-06-2016, 09:19 PM   #42
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...Just needed to vent some frustration.
My net worth was $242K in May 2015
Fast forward to November 2015 and I am at $240K, despite saving approx $25K...
So, you have lost 10%. Would you jump off a bridge if the market dropped 50% from its previous high, as it did in 2003 or 2009? You should get used to a 10% correction, or even 20% bear market. It's part of the deal. The market does not have to go up every year.

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...While I'm slightly more optimistic at 2% real future returns, it wouldn't surprise me if we saw 30 years of 0% returns.
30% of 0% return would hurt a lot of people, retirees and workers alike.

Can I survive that? Yes, but that's with SS, and also I will not leave much if any for my children. But if that's the way it's going to be, I will not be the only one hurting. Misery loves company.
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Old 02-09-2016, 11:06 AM   #43
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The human brain is very good at deflecting us from the path of logic through emotional stresses. In this kind of situation I've learned to hijack that process and turn it into a positive, because mathematically it is...

When the market goes down... stocks get cheaper, it's the time you should invest more! What's already in your account goes down too, and that stings, however what you're putting in has more POWER now. I'm a firm believer that there is a long term trend of the market and that those forces are fixed... short term fluctuations move around that long term trend. The year by year ups and downs don't matter so much on the longer horizon... 20+ years.

If that isn't enough to turn your mood upward... how about this one:

Everyone will experience a really bad... and long term... bear market during their lifetime. We are in the midst of a long one now... it's been going on since you were a teen. Stocks are cheaper because of it... your $40,000 a year is buying a lot more than it would have in 1999. I can confidently say that because look what the market has done since 1999... I can safely say that in another 17 years we be doing better than we have the last 17... Every calculation I've done shows that hitting these bear markets later in life effects your balance SO much more than if you run into them in your earlier years. A person who is consistently investing, would actually hope to have a bear at the start, and wish to avoid one at the end...

The flip of that is... if I told you you'd run into a very properus decade at some point in your working career and gave you the choice to experience it in your 20's when your account is low or 50's when you've had three years of contributions to benefit... which would you choose?

Because of this I'm thankful for 2015... and ever the optimist. The only way to make it to the end with a pile of money that will sustain you, is to be stubborn in your strategy. Keep up the great work!
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Old 02-12-2016, 09:05 AM   #44
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I am 31 years old, and have been an avid saver for the last 8+ years.
William Bernstein said "A 25 year old who is actively saving for retirement should get down on his knees and pray for a decades-long, brutal bear market so that he can accumulate stocks cheaply"

You're doing great- markets like this are not fun, but you are a long way from retirement- try to think of it as a stock sale- just be sure you're doing the buying not the selling!
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