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Dtail · 10-01-2021, 10:41 AM

Quote:

Originally Posted by chassis

Who has gone to 100% cash given the 5% pullback currently in play?

I can't imagine anyone on this site has pulled that trigger just due to a 5% drop.

Koolau · 10-01-2021, 10:43 AM

Quote:

Originally Posted by ducky911

Well a 5% drop is here. I went to put this small amount of side money to work but first had to check my balances. Hmm had not check since last November...way out of balance.

Put 100% into bonds. Still way out of balance.

Choices :

1. sell equities in my taxable account...ugh pay taxes..no way

2. Turn my heavy bond tax deferred account to 100% bonds.

3. embrace my new goal of 70/30 from 60/40

I'm still bullish. Think I will ride it out.

1. One of the few advantages of having "too much" in my 401(k) is I never have to worry about "selling" to rebalance and paying taxes (not then, anyway.)

In reality, so far, I've not rebalanced as my AA is something like 35% equities.

Dash man · 10-01-2021, 10:49 AM

We’re down 2.8% from recent highs. Nothing to lose sleep over.

calmloki · 10-01-2021, 12:54 PM

Feel fortunate to have had a 60 buy order in for VTI. It dropped 5% below the last year's high sometime this morning, boom: instant purchase. Now to put in an order for 10% below for a greater sum of money. Very neat, as it means we buy at the lowest point as time goes on and we don't miss any dips into our buy range.

OldShooter · 10-01-2021, 01:10 PM

Quote:

Originally Posted by calmloki

Feel fortunate to have had a 60 buy order in for VTI. It dropped 5% below the last year's high sometime this morning, boom: instant purchase. Now to put in an order for 10% below for a greater sum of money. Very neat, as it means we buy at the lowest point as time goes on and we don't miss any dips into our buy range.

But that implies you have cash that you're holding out of the market. What would have happened if you had simply committed that cash to VTI from the beginning and you rode the market rise from the commit date? It seems like you might be better off.

target2019 · 10-01-2021, 01:56 PM

VXUS total international is -6% from its high.

calmloki · 10-01-2021, 04:02 PM

Quote:

Originally Posted by OldShooter

But that implies you have cash that you're holding out of the market. What would have happened if you had simply committed that cash to VTI from the beginning and you rode the market rise from the commit date? It seems like you might be better off.

Hmm. Reality is that the cash represented dividends that had accrued then got consolidated to one VG account. Still have about the same amount as we just invested in VG sitting there but larger amounts are sitting in VG linked banks. Those funds are from rent/loan/property sale payments and build up over time - and those funds got a recent substantial boost from a couple CDs that matured!

I look at the way the stock market has grown over the last decade - or just this year - and think how much ahead we would be.. and then note that we don't have to maximize any more. We are selling rentals - reducing our income - and our lifestyle is pretty set and modest. We are also risk averse - it takes quite a lot for me to think that the stock market is a real thing and that the whole world is making buckets of money doing nothing but trading stock from hand to hand. Can't fight the sea though, so I'm buying VTI up till we have about a third of our net worth in the market. Having buy orders in makes me feel like I'm buying on sale and takes second guessing in the moment off the table. Also means the computer program can make those buys and I don't have to stress on perfectly executing a buy order at the right moment .

A few years ago I tried buying a set amount on a set day every month. Hated it. Too many little buys to track and never felt like cheap buys were for enough to matter while buying high just hurt my feelings.

All this to say you are probably right but I think I can afford doing something that feels better even if it doesn't turn out as well.

NW-Bound · 10-01-2021, 05:16 PM

Quote:

Originally Posted by calmloki

... it takes quite a lot for me to think that the stock market is a real thing and that the whole world is making buckets of money doing nothing but trading stock from hand to hand...

Now, they are trading bits. Just doggone bits, not even shares of companies that still have no sales, no products. It's getting better all the time.