New and discouraged investor

[clifp]

Very well, I will sell you all of my stock with a modest 200% price increase. I think this is only fair as it reflects the true value and a distinguished individual deserves nothing but the best. Why, even with my modest offering price they're still quite the bargain for any discriminating buyer.

You've got a deal as long as you'll take my AAA MBIA rated bonds and IndyMac preferred stock as payment.

 

[Marquette]

You've got a deal as long as you'll take my AAA MBIA rated bonds and IndyMac preferred stock as payment.

Only if I get some sort of bobblehead.

 

[Bestwifeever]

There are some good suggestions here, as always.

That is so impressive that you got six figures of education debt out of the way.

I agree that the market is scary. Our investments in it were all company related, from profit sharing early on through 401K company contributions and matches to ours. Other than those we stayed away from pretty much any investing other than in the giant black hole that was our children . But in 35 years and through some pretty bad and some pretty good markets, the profit sharing/401k increased more than tenfold and now can fund our retirement. It took some fairly simple asset allocation decisions and rebalancing efforts on our part.

So I guess I'm saying, look at your retirement savings as something that you're just doing regardless of the market right now. No one can see the future, but for now you've not "lost" anything since you are not selling it, if that helps.

 

[gqlefty]

invest

If you have a 401K at work you should be investing in it first. Especially if there is a company match. After that open a Roth IRA. 30 years from now you will be glad you did.

 

[kumquat]

Only if I get some sort of bobblehead.

This kind of bobblehead

 

[Canadian Grunt]

My two cents,

You might get some relief from your anxiety by following two strategies to smooth your portfolio volatility. Add a 25% bond component and stick to stocks or funds paying dividends. The quarterly dividends will be a comfort as they can be reinvested if the market continues downward. There is more portfolio stability with a 25% bond component and the historical drag on returns is minimal for the peace of mind that you obtain.

 

[Tempesta]

argh!!!! this market sucks! That's it, I'm pulling all my money out and stash it under my mattress!

 

[unclemick]

This kind of bobblehead

If you are old and retired: Pssst - Wellesley!

Or if in the accumulation phase - auto deduct to the Target Retirement Series suitible for your age. Then go off and tend to your day job - don't watch the market, it will fluctuate(a little JP Morgan joke).

If you get the urge to look - go kayak, garden, watch football, whatever.

Remember - auto investing - aka dollar cost averaging usually does something good. Looking doesn't - if you panic and act improperly.



heh heh heh - rollercoasters are fun too - if you need excitement. It's a hormone thing.

 

[Canadian Grunt]

argh!!!! this market sucks! That's it, I'm pulling all my money out and stash it under my mattress!

That would be a mistake. When the market comes back the first 20-30 days or so will be the best time to be invested. Nobody can time the market. Now is the time to check your asset allocation and reinvest.

Now is the time to invest!!! All the way down. If you believe in dollar cost averaging, the best time to practice this strategy is in a bear market.

Rejoice in the bear market as you have a long time horizon. I wouldn't try to pick stocks though as this is a broad sell off. Use indexing.

I would also pick dividend and income producing ETF’s so you can reinvest the earnings should this end up to be a protracted bear market.

 

[VaCollector]

argh!!!! this market sucks! That's it, I'm pulling all my money out and stash it under my mattress!

I felt that way just 30 days (or so) ago when my BAC was trading at $18/share.....while I'm not anywhere near where I want or need to be, I am up 70%+ since then....and I would have lost out on all of that, plus dividends, had I listened and acted on my feelings of panic

In a market like this, one needs to find YOUR comfort zone, whether it be 100% Vanguard or 20% stock/80% cash....and stick to it until some other outside force influences your decision process!

 

[DblDoc]

argh!!!! this market sucks! That's it, I'm pulling all my money out and stash it under my mattress!

If you have any VEU, VWO or VTI I'll take them off your hands. As an accumulator with about 10 more years to go before FIRE this may be my last good bear market before then.

DD

 

[Milton]

As an accumulator with about 10 more years to go before FIRE this may be my last good bear market before then.

Perhaps. Only time will tell. But the above kinda reminds me of all the 17 year olds in September 1939, worried that the war would be over by Christmas (before they could join up).