Some early retirees have second thoughts

[Leonidas]

I'm starting to think that a significant percentage of the population (including this forum) have no knowledge of finanial events prior to 2003.

That's the only way I can reconcile the outrageous levels of panic I see. Do people actually believe the dem crap of "worst economy in 50 years" that has been shouted non-stop for the last 8 years?

The dominant media has been working overtime to convince everyone, and we do have a lot of people here who have known nothing but the comparatively great economic times we've seen over a couple of decades.

 

[W2R]

I guess I would sell equities if/when they did well enough that I needed to, when rebalancing.

Otherwise, I don't see any reason to. More likely, I would cut back on expenses and hold on.

 

[CuppaJoe]

You want to do a poll on your life expectancy? Knock yourself out...

Better me, than you! I don't have much of a left jab.

 

[CuppaJoe]

I don't quite understand your statements. Do you mean long-side traders with a short term outlook?

And by "Anything I've got in equities is 15+ plus..." do you mean that you would not touch your equity holdings for 15 years no matter what happened in the market or society or business?

If that is what you mean, count me as a short term trader.

Ha

Yeah, for now, that equity paper money is buy, hold and forget. I cashed out last year because of retirement planning and near 14,000 looked ok to me considering that I had 30 years of buy, hold and ignore the noise. I'll take my head out of the sand again in ten years; and in the meantime I will continue to add to the equity side.

It's easy to over-generalize what others say here, but often I wonder if they're crying in their beer because they bought at over 13,000? Are they upset because they bought at 12,000 when it's at 11,500? That would be short-term thinking. I don't care if the DOW swings 400 points either way today or tomorrow.

 

[haha]

It's easy to over-generalize what others say here, but often I wonder if they're crying in their beer because they bought at over 13,000? Are they upset because they bought at 12,000 when it's at 11,500? That would be short-term thinking. I don't care if the DOW swings 400 points either way today or tomorrow.

My take is that they are more concerned about drops that are truly large but certainly possible(within recent historical experience). I know I am.

Ha

 

[ejman]

I started investing in January 1987. In October of that year the market crashed , and went down 25% in a single day. The equivalent today would be a drop of close to 3,000 points in the Dow. I wonder how many of us would be cool calm and collected after a day like that. (I sure as hell wasn't -I was so scared that I froze and did nothing for a whole year fortunately as it turned out)

 

[Moemg]

I started investing in the 80's so I was thru the 1987 drop , the dot com bust & more . It always rattles me but logically I know I could survive on less than half the amount I have invested and be okay .

 

[CuppaJoe]

My take is that they are more concerned about drops that are truly large but certainly possible(within recent historical experience). I know I am.

Ha

My first post was prompted by several threads asking people how much or what percentage they lost since last October's high or this year or since June; short term results. Problem is, we don't know what their cost was. Several frequent posters lament where there portfolio is today; I have no way of knowing if they are comparing it to cost (plus inflation) or, say, the 14,000 paper high.

This thread is a good example of many topics. I, too, am concerned about a large drop whether I'm fully invested or not.

 

[CuppaJoe]

I started investing in January 1987. In October of that year the market crashed , and went down 25% in a single day. The equivalent today would be a drop of close to 3,000 points in the Dow. I wonder how many of us would be cool calm and collected after a day like that. (I sure as hell wasn't -I was so scared that I froze and did nothing for a whole year fortunately as it turned out)

--
I didn't panic that day because I was in since 1972 and always factor volatility into my thinking. Sure, my portfolio lost paper money that day, so what; I expected to be in the market at least another 20 years. [Edit: it was 100% equities then.]

If you started in Jan. had a loss in Oct., I would think you had relatively little to lose?

 

[ejman]

--
I didn't panic that day because I was in since 1972 and always factor volatility into my thinking. Sure, my portfolio lost paper money that day, so what; I expected to be in the market at least another 20 years. [Edit: it was 100% equities then.]

If you started in Jan. had a loss in Oct., I would think you had relatively little to lose?

Well, no. I had been working overseas for 6 years so had quite a bit saved which I proceeded to invest when I got back home. At the time I was not really aware of investing history and that volatility is par for the course. All I knew is that the 1929 crash was here again and I'd been foolish enough to blow my hard earned stash.

 

[wolf]

Just my 2 cents. But $52 K can be a lot of income depending on the State you live in. However, I live in California, and depending on one's "debt structure", $52 K is not a huge amount!

 

[Purron]

Actually, I have tossed around the idea of returning to work. Not only because of the market downturn and reduced home values (we have two propterties) but also because, at times, I feel a need to re-connect and contribute. I retired in January and enjoy the freedom very much. Even so, I think there are things yet for me to do other than volunteer work, home improvements, Costco visits to save a buck and endless vacations.

 

[REWahoo]

Actually, I have tossed around the idea of returning to work. Not only because of the market downturn and reduced home values (we have two propterties) but also because, at times, I feel a need to re-connect and contribute. I retired in January and enjoy the freedom very much. Even so, I think there are things yet for me to do other than volunteer work, home improvements, Costco visits to save a buck and endless vacations.

We who are about to collect Social Security (or already do) salute you!!!!

 

[cute fuzzy bunny]

Cue the AC/DC soundtrack....

 

[unclemick]

We who about to collect Social Security (or already do) salute you!!!!

Katrina 2005 August. Early SS Oct 2005 - I decided perhaps I wasn't bullet proof.

June 1966 - Hyatt Hotel stock on my broker's advice. T Rowe Price New Horizons fund. By 68 - I was a legend in my own mind - with a new sport's car, Penthouse - nothing but blue sky ahead.

The 500 Index didn't come till later and Mr Market proceeded to beat me around the head and shoulders with a wet squirrel while Boeing urged me to turn out the lights - if I was the last person leaving Seattle.

heh heh heh - I don't need no stinking advisor - I already paid for my education! .

 

[CuppaJoe]

Well, no. I had been working overseas for 6 years so had quite a bit saved which I proceeded to invest when I got back home. At the time I was not really aware of investing history and that volatility is par for the course. All I knew is that the 1929 crash was here again and I'd been foolish enough to blow my hard earned stash.

Yikes! Without 20 questions we don't get it. You say you stayed in and recovered? Are you still in stocks? Could you weather a 25% drop now?

 

[ejman]

Yikes! Without 20 questions we don't get it. You say you stayed in and recovered? Are you still in stocks? Could you weather a 25% drop now?

I was so paralyzed by fear back then that i did nothing for a year - left my investments as they were. Then I noticed that my investments had nicely recovered pretty much as if the crash had not happened. I continued investing during the rest of my working career until I ER'd in December 2002. I am (have been since ER) following the 60/40 allocation with periodic adjustments (another thread). All of my annual reallocations so far have been selling stocks (inside my IRA) to bonds. I suppose if there was a 25% drop I would have to go in the opposite direction but yea, I would certainly remain in stocks. I have 5 years expenses in ready asset funds that would hopefully cover a 25% (or worse) drop and all simulations I've run seem Ok so.....

 

[Purron]

We who are about to collect Social Security (or already do) salute you!!!!

Yup, I saw than one coming REWahoo. It's the standard response around here for those who do or consider working again. I've read comments like this time and time again. Why is that? I doubt it's a genuine gratitude for keeping social security afloat.

 

[73ss454]

Nope, it's a smart ass remark. But since this is a retirement forum what do you expect.

I for one think it's great and I also thank you.

 

[REWahoo]

I've read comments like this time and time again. Why is that? I doubt it's a genuine gratitude for keeping social security afloat.

For someone who is happily retired and cannot imagine returning to work except in a financial emergency, it is a way of trying to find something good in an otherwise depressing scenario. Support for Social Security is the only silver lining I can find in the dark cloud of giving up retirement.

 

[REWahoo]

Nope, it's a smart ass remark. But since this is a retirement forum what do you expect.

I like my explanation better.

 

[73ss454]

You are much better than I am at explaining things. (heh)

 

[Purron]

Nope, it's a smart ass remark. But since this is a retirement forum what do you expect.

I for one think it's great and I also thank you.

Guess I expected more - like a discussion of the struggles and doubts many of us go through upon retirement. It was a mistake to look for anything other than a put down at the very idea of returning to work. Lesson learned.

 

[73ss454]

I'm retired almost 2 years now and live off my port. I too have my struggles and doubts but returning to work is just to extreme for me. I'd rather cut my expenses, right after I get done putting in the pool.

 

[W2R]

I haven't retired yet, but I cannot imagine actually wanting to go back to work. To me, working is too similar to slavery.

I am not meaning to be criticizing anyone, especially Purron. I just can't quite wrap my mind around the idea.