A Test of ER Resolve

[aja8888]

These kind of sacrifices makes one wonder if retiring is worth it!
Last week, I tried to slide an $8 bottle by my GF and it met with little appreciation, so I bought an $11 bottle tonight for this weekend to please my "high maintenance" GF.


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Mulligan, I'll bet she won't notice if you save those $12 empty bottles and re-fill them with wine from the $8 ones.

 

[Billk400]

I made the decision to retire at the end of May 2016 on 1/11/16 so some of the blame on the market decline can be put on me! I haven't given my notice yet (I figure that 60 day notice is about right) and do have the option of backing out but at this time haven't yet thought of changing my mind. It is somewhat unsettling thinking of going into retirement with the market "cratering" (sequence of returns problem), but we wont have to be taking any $ out of investments for approx. 5 years (have other sources of income and DW and I will work some PT) so I think I am fine to ride it out (I hope!...lol).

 

[bclover]

Lol, hey I accepted a bye-bye package. Of course I'm drinking nightly and praying to every known deity. I keep saying " this to shall pass"

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[HadEnuff]

I pretty much knew that whenever I made the plunge, it would trigger some sort of correction, which is why I made the decision 2 years ago to "Two more years"...

Hopefully the extra padding will cushion the fall.
Carry on.

 

[Taxman59]

I retired on July 1 of this year. I had cash to last me through 2016, and dividends coming in to cover another 4-6 months. Except for some unplanned furniture purchases, our spending has been below the budget by about 15%. I look at the market value of the investments, and alternate between a desire to cut back on expenses, and a realization that the nest egg is big enough to cover us until 95 unless we have 4 years of -20% per year drops. I did some mental gymnastics on should I have stayed in the w*rkforce for another 6-12 months. The $ answer is that with the decline in the market, it would have been 1 1/2 years or more before the nest egg would be sufficient to my mind (the drop would cause me to want even more of a cushion). The comments from the office tells me that the office politics are even worse than the presidential politics! The mental health costs would be high!

I have resigned myself to minor changes in our spending (and the health insurance I budgeted for is already down by 20%!) and turning off the economic news for a while.


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

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[W2R]

I am sad about this year. I am down 200K from my high, some of it I spent but down 100K this year on investments.

I know what you mean! I spent a lot in 2015 on buying my Dream Home, selling my old home, and moving. But I'm amazed to discover that the drop in my portfolio just since January 1st, exceeds that amount! Whew.

Mulligan, I'll bet she won't notice if you save those $12 empty bottles and re-fill them with wine from the $8 ones.

Hey, I have an idea. Maybe SHE can provide the wine, in which case he can demand a $50 bottle every time. This also has the advantage of allowing her to prove that she is not a gold digger.

 

[target2019]

It's a great time for those of us unfortunate enough to still be in the accumulation phase.

Mixed fortune. Most piles shrinking, but new contributions buy shares at a discount.

 

[Tom52]

Fast approaching 2 years retired. So far I am sleeping well at night because I am more conservative with my AA than most people here. I am sitting on more than enough cash/CD's to cover living expenses until DW and I reach FRA SS, which is 3 years for me and 4 years for DW. When we are both drawing SS we expect that we will not need to touch our investments as we will also be drawing a couple of very tiny pensions plus an inherited annuity.

As we spend down our cash/CD's over the next 4 years to support our retirement our allocation in stocks will naturally increase, maybe into the range of 40%-45%. That is probably where it will remain as I am comfortable with that.

So I am staying the course and in fact I have some excess cash that I will probably drop into SP500 or Wellington if Mr. Market drops a bit more.

 

[misshathaway]

I know how you feel. ER'd Sept 18, 2015. I thought having gone through 2008 would have hardened me much more than it has. I thought my response to a downturn would be, "Well, nothing could be as bad as that was. This is cake".

But I didn't know myself very well. I am quite unhinged by the current drop, even though I am 50/50 and have 3 years of living expenses in cash. I learned from 2008 not to give in to the anxiety and cash out, but the living with fear is putting a serious damper on retirement.

A couple of coping strategies are marginally working for me. I review my plan A,B and C which makes me feel a little more in control. Also I tell myself that it was a waste to ER if I'm going to MAKE MYSELF as miserable as I was in my last job.

 

[W2R]

misshathaway, I'm surprised at my own response as well even though it is the reverse of yours. Honestly I thought I would be more worried than I am because I remember all the angst expressed by retirees on the forum back in 2008-2009. 2008-2009 happened mostly while I was still working, so I had to figure out whether or not to go through with my long time plan of retiring in November of 2009 (I did).

But now, I am retired and there is nothing to decide. So, no worries. If necessary I will cut back on my spending, but I don't even see that as necessary for quite some time if ever. Meanwhile, "Laissez les bons temps rouler" as we say down here.

 

[Onward]

Nothing like losing 5% (or is it 7% by now) of one's NW in the first couple of weeks of retirement to bring any lingering second thoughts to the surface.

Welcome to ER.

 

[molly1]

Also retired effective Dec 31, 2015. Yes, I admit that we are very concerned. I vow daily not to pay attention to the market but I find it appears everywhere I look!!!

Trying hard to enjoy our 3 month snowbird experience in Florida. We have enough cash/bonds for a couple of years but just not how we wanted to start retired life.

 

[Looking4Ward]

Between year-end capital gain distributions last month and expected future dividends, I've got enough cash to last 2 years without selling anything.

Something tells me the markets will look different 2 years from now. If they are worse, then I'll stick to my plan and sell from my short-term 30/70 bucket.

Part of me is glad to get this inevitable drop over with.

 

[Options]

If this market's gyrations have you worried, you AA is not set to your level of comfort with risk. See this:

The Retirement Café: What I Do When the Market Tumbles

Specifically:

Here’s my theory. If you have such a high allocation to equities that market declines make you anxious, you own too much stock. Find the allocation at which severe bear market losses won’t keep you up at night.

and this:

https://www.bogleheads.org/forum/viewtopic.php?f=10&t=181681&newpost=2753280

Specifically:

Don’t rely on gurus, shamans or talking heads.
Do notice your own state of mind.
Don’t take actions while in a state of discomfort.
Do notice the panic around you.

 

[jazz4cash]

Lots of advice here to not watch CNBC, but I say all things in moderation! Here's a nugget from Jack Bogle yesterday (including a line I thought I originated in a totally different context).
"Don't do something, just stand there........"

http://www.cnbc.com/2016/01/20/investing-legend-jack-bogle-stay-the-course.html

 

[NW-Bound]

"Don't do something, just stand there........"

Not "Buy, buy, buy"?

 

[Totoro]

Not "Buy, buy, buy"?

Quote by warren buffett: “Opportunities come infrequently. When it rains ...”


It's just a drizzle right now though, so just adjust the rain water collector, check the storm drains, and see how many buckets you have in the back.

And ignore the weather forecast

 

[NW-Bound]

Here's the entire quote:

“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble” - Warren Buffett

I don't know if this has been authenticated, but it does sound like something Buffett would say. Bogle would not say something like that.

Anyway, it's a good point to watch Buffett to see when he says "Buy, buy, buy". So far I think he stays mum. In 2008-2009, I bought but did not go "all in". Maybe I will get another chance?

 

[haha]

misshathaway, I'm surprised at my own response as well even though it is the reverse of yours. Honestly I thought I would be more worried than I am because I remember all the angst expressed by retirees on the forum back in 2008-2009. 2008-2009 happened mostly while I was still working, so I had to figure out whether or not to go through with my long time plan of retiring in November of 2009 (I did).

But now, I am retired and there is nothing to decide. So, no worries. If necessary I will cut back on my spending, but I don't even see that as necessary for quite some time if ever. Meanwhile, "Laissez les bons temps rouler" as we say down here.

So far at least, this is not even 2008's
baby sister. Amounts matter.

Ha

 

[Lsbcal]

So far at least, this is not even 2008's
baby sister. Amounts matter.

Ha

Good point. Some of us forget or never had the perspective. I'll go back to this chart which I created specifically to give me that perspective. I'm like many others, getting emotional at times and missing the bigger picture.

See the 1987 crash (black line drop). That was about 30%. Now look at the 2008 drop (orange line drop). I haven't shown the blue line yet for January but so far it would just look like a small drop about equivalent to the drop in that Aug-Sept 2015 wiggle towards the end of the blue line.

 

[EastWest Gal]

I am sad about this year. I am down 200K from my high, some of it I spent but down 100K this year on investments. Two full years retired now and it is a little scary but I know it will come back. I have enough cash to last 6 months or more so not really desperate to sell low but it feels really bad. I for a few seconds thought about looking for a job but remembered I don't want to work.
Sometimes I simply look at my balance and think how many would think they won the lottery if they had as much I as I have left and try to be happy. I can lose another 50% and still be fine.

I feel the same way. My husband said yesterday that most people don't have $3M. I pointed out that we no longer do. He was genuinely surprised. He doesn't look at our portfolio despite my efforts.

Given I've been in "semi-ER" for a year, as my group can't find doctors or nurse practitioners to replace those who left, especially me, I am in a "better" position than some. I can work as much or as little as I choose, or work not at all.

I wanted to stop in March, but my cash position is not as good as I'd like it to be. So, I've decided to work a few days per month--enough to avoid having to sell during this year, longer than I'd planned to do.

At $500-800/day, it's hard to say no.


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[Spanky]

We are already cutting back. Drinking an 8 dollar bottle of wine tonight instead of a 12 dollar bottle. Sacrifices must be made

I bet it's just as good.

 

[Spanky]

At $500-800/day, it's hard to say no.

Totally agreed.

 

[Mulligan]

My wife does not drink. So she thinks that any money beyond a 2-buck chuck ($2.99 where I am) is wasted.



I bought some $15 bottles at Bevmo, but they had this deal of 5c for the 2nd bottle. When drinking them, I told myself that I was drinking a $15 bottle, not a $7.5 bottle. What do you think?

My GF is a bit too label conscious. I need her to think like you do!


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[jazz4cash]

I am sad about this year. I am down 200K from my high, some of it I spent but down 100K this year on investments. Two full years retired now and it is a little scary but I know it will come back. I have enough cash to last 6 months or more so not really desperate to sell low but it feels really bad. I for a few seconds thought about looking for a job but remembered I don't want to work.
Sometimes I simply look at my balance and think how many would think they won the lottery if they had as much I as I have left and try to be happy. I can lose another 50% and still be fine.

I left gainful employment about 6 months ago and I can appreciate your feelings. I feel almost too nonchalant about my paper losses but I have a good buffer of CDs to carry me through for awhile. I'm calling it a bucket strategy which I know creates a drag on my returns but it is certainly effective in terms of relieving me of stress (which is the main reason I ER'd when I did). I still need to sort out the mechanics of re-filling the buckets which is another pitfall of this strategy but I am confident that I will figure it out.