Getting paid for doing nothing

[brewer12345]

After crawling over a mountain of broken glass while being sprayed with lemon juice by supersoaker-wielding members of management, its about ****ing time.

 

[FUEGO]

$14K today is really good (from the size of your stash as described elsewhere as I have good memory).

My best position is up 6% today, but I have less than 1% in that. My largest position is Berkshire, and even for a conglomerate I only put 3% of portfolio there, and it about matches the market today.

$14k today on $1.253 million in market investments (1.1%). I guess the mutual funds had posted already for the most part.

 

[NW-Bound]

On a day like today, my 25% cash is holding me back. That's the price of being conservative.

In terms of absolute dollars, I remember my worst day loss was $80K, sometime in the midst of the Great Recession. The best day gain was $40K, but I cannot remember when that was. I am getting old. I have a daily record going back to 1999, so can find it if I want to. But I definitely remember telling myself that the market never goes up in a day as much as it drops. The ratio of max down vs up was around 2, for me anyway.

Anyway, my holdings are more conservative now. Even so, I still find it interesting to compare my winners and losers for the day to see if I can understand why, as they never move completely in unison. Usually, a stock moves along with its sector, which may be driven by some economic news. Or there might not be any rhyme or reason to it.

Even on a day like today, one of my positions dropped 2%. Why? Then, I remember that yesterday it went up 6% due to a good news. So, today investors like to chase something else and might have sold this to raise money. Funny stuff!

PS. By the way, you are not even 40 yet, if I recall correctly. Having that investable account at your age is darn impressive. I did not pay attention when at that age, but do not think I had more than 1/2 of what you have now. Probably quite a bit less than 1/2. But wait! A dollar was worth more then.

 

[NYEXPAT]

Just shy of 100% cash and praying that S&P 1950 is "The Top" .

 

[grasshopper]

With all my tax deferred/free in Wellesley and 15% cash in my taxable, I am happy to get .25% on my portfolio, today I got .39%. I can't spend what I have already.

 

[wingfooted]

Up 30% YTD 2014 on top of a 45% gain in 2013. The last two months have been unbelievable as some concentrated positions in AAPL and APC have done very, very well.

Yeah, I am looking around for the exit sign. The only thing holding me back is I would hate to pay short term capital gain tax plus 3.8% ACA surcharge.

I don't feel guilty at all that I've done nothing for the money as I did work very hard to put together the initial capital.

 

[Major Tom]

I don't get weirded out by it at all, though there are times when the fact that I can sleep in every single day if I want to, and do what I want when I want, for the rest of my life seems like a really neat concept. Occasionally, I still have to pinch myself to make sure that it's real.

As others have said, we are not getting paid for doing nothing, as we have used our capital to invest in businesses that provide work for others and create value. Sometimes I feel like a member of the landed gentry, though I don't quite look the part, pedaling around town on my bicycle, and feeding the neighborhood cats

 

[Totoro]

Surreal feeling gets a bit stronger: found out that yesterday's jump was probably caused by the ECB decision to lower interest rates again.

Draghi pushes a button and suddenly I am virtually granted a few month's worth of living expenses.

Even in financial independence I guess many aspects of our lives are totally out of our own control.

Just the thought of the day.

 

[CaliforniaMan]

Met with a long time friend about the same age as me a couple of months ago. He said he will probably have to work until he dies. He started out much better off than me and I do feel sad for him. But I don't feel guilty. He was the hare, I was the tortoise. Guess there is wisdom in some of those old fables.

 

[Alan]

It does sort of seem weird or surreal to me, as well as being absolutely wonderful. I have pension checks, dividends and cap gains distributions appearing in my checking account just like the pay checks we used to get, but instead of going to work we get to play.

Long may the "weirding way" continue.

 

[grasshopper]

Met with a long time friend about the same age as me a couple of months ago. He said he will probably have to work until he dies. He started out much better off than me and I do feel sad for him. But I don't feel guilty. He was the hare, I was the tortoise. Guess there is wisdom in some of those old fables.

Thanks for not using the old grasshopper and the ant tale.

 

[NW-Bound]

Surreal feeling gets a bit stronger: found out that yesterday's jump was probably caused by the ECB decision to lower interest rates again.

Draghi pushes a button and suddenly I am virtually granted a few month's worth of living expenses.

Even in financial independence I guess many aspects of our lives are totally out of our own control.

Just the thought of the day.

The ECB lowered the deposit rate to -0.1%. This means they will charge cash accounts for depositing the money! This negative interest rate is unprecedented, I believe. They are saying "Take your stinkin' cash, we don't want it".

What are all the ramifications of this? Obviously, stocks went up (for now) all around the world, but if this medicine has no side effects, why not administer it earlier and in stronger doses?

 

[CaliforniaMan]

Thanks for not using the old grasshopper and the ant tale.

You made me smile!
Here, it was never a case of not working hard, no one worked harder, just trying to get to the finish line quicker. Making big bets, big wins, big losses. Euphoria when times were good, panic at other times. In the end just plodding along maxing out boring retirement accounts with stupid index funds in good times and bad really did seem to be the better approach.

 

[NW-Bound]

... In the end just plodding along maxing out boring retirement accounts with stupid index funds in good times and bad really did seem to be the better approach.

... although buying low is going to be harder, fiscally as well as mentally, when you're an ER with no fresh cash coming in.

 

[FUEGO]

On a day like today, my 25% cash is holding me back. That's the price of being conservative.

In terms of absolute dollars, I remember my worst day loss was $80K, sometime in the midst of the Great Recession. The best day gain was $40K, but I cannot remember when that was. I am getting old. I have a daily record going back to 1999, so can find it if I want to. But I definitely remember telling myself that the market never goes up in a day as much as it drops. The ratio of max down vs up was around 2, for me anyway.

Anyway, my holdings are more conservative now. Even so, I still find it interesting to compare my winners and losers for the day to see if I can understand why, as they never move completely in unison. Usually, a stock moves along with its sector, which may be driven by some economic news. Or there might not be any rhyme or reason to it.

Even on a day like today, one of my positions dropped 2%. Why? Then, I remember that yesterday it went up 6% due to a good news. So, today investors like to chase something else and might have sold this to raise money. Funny stuff!

PS. By the way, you are not even 40 yet, if I recall correctly. Having that investable account at your age is darn impressive. I did not pay attention when at that age, but do not think I had more than 1/2 of what you have now. Probably quite a bit less than 1/2. But wait! A dollar was worth more then.

I mostly ignore my portfolio. I'm not going to touch 97.5% of it for over a year, and since the dividend yield and some other income are more than enough to cover our expenses, I might not have to sell anything ever.

You must like tracking your portfolio closely more than I do!

 

[NW-Bound]

Heck, I do not trade much (turnover lower than Wellesley) but like to watch Quicken update of portfolio throughout the day. It is like watching a horse race. The only time I don't is when I am up in the boonies home without Internet, or when I am traveling.

 

[FUEGO]

Heck, I do not trade much (turnover lower than Wellesley) but like to watch Quicken update of portfolio throughout the day. It is like watching a horse race. The only time I don't is when I am up in the boonies home without Internet, or when I am traveling.

I think once I hit a million in the portfolio, I stopped paying attention. The game was won at that point, and the rest is just numbers. Maybe I'll start paying attention if I cross back below a million.

 

[NW-Bound]

The game is to keep getting more millions, else one can declare victory even at levels far below $1M, if you read blogs of how some people live. And it should be easier and easier, as the first million helps the 2nd one come quicker and so on, right?

More is [-]more[/-] merrier!

 

[Andre1969]

The game is to keep getting more millions, else one can declare victory even at levels far below $1M, if you read blogs of how some people live. And it should be easier and easier, as the first million helps the 2nd one come quicker and so on, right?

More is [-]more[/-] merrier!

I noticed that it does seem easier to fall into that trap, where the more you have, the more you want. But I think in my case, that will only work up to a point. Once I get to a point where I'm really comfortable, I'm probably not going to be too concerned with getting more.

As for the second million being easier than the first, I imagine that's true. I've noticed it was that way when it came to $100K thresholds. Here's a table I threw together, showing how long it took to first hit each threshold...

3/5/98: $0
1/21/04: $100K, 71 mos
6/15/05: $200K, 16
10/16/06: $300K, 16
10/31/07: $400K, 12
3/10/10: $500K, 28
1/18/11: $600K, 10
3/30/12: $700K, 14
4/30/13: $800K, 13
12/31/13: $900K, 8

I was at $980K as of last night's close, so hopefully the next $100K threshold will come in at under 8 months!

 

[marko]

Anyone here ever get weirded out that as a passive investor you get paid for doing nothing?

Well, that IS the idea isn't it?

Then again, the trust fund kids have been doing that all along....I just follow their lead.

 

[NW-Bound]

I noticed that it does seem easier to fall into that trap, where the more you have, the more you want. But I think in my case, that will only work up to a point. Once I get to a point where I'm really comfortable, I'm probably not going to be too concerned with getting more...

I think I have enough when I can buy two business class tickets to Sydney without flinching. Note that I did not say 1st class.

What would that take? I don't really know, but when I am there, perhaps I will know.

 

[daylatedollarshort]

I think I have enough when I can buy two business class tickets to Sydney without flinching. Note that I did not say 1st class.

What would that take? I don't really know, but when I am there, perhaps I will know.

When you can afford the business tickets, won't that just move the goal posts to the first class tickets, and from there maybe to renting a private jet, to fractional jet ownership, and from there to your own jet, then a bigger and bigger jet, until your rocket ship is competing with Richard Bransoms's?

 

[NW-Bound]

OK, I have an idea.

A business class ticket (PHX-SYD) costs 5-6X more than a coach seat. I can now buy a coach seat with no sweat. To do the same with a business class seat would then require me to have 5X more money.

I will never get there. I remember looking at FIRECalc runs. I will not live long enough.

 

[NW-Bound]

When you can afford the business tickets, won't that just move the goal posts to the first class tickets, and from there maybe to renting a private jet, to fractional jet ownership, and from there to your own jet, then a bigger and bigger jet, until your rocket ship is competing with Richard Bransoms's?

No, I have flown business class and 1st class on Qantas (I did not have to pay), and the difference is not worth the money.

I am a modest guy, and do not wish for a private plane. The reason for business seats is that I love to travel, and can do that quite economically (no fancy hotel, luxurious resorts, etc...). But what keeps me from traveling more is mostly the cramped seat.

PS. Similarly, I do not crave for a fancy sports car (see the other thread about Vette and Porsche), nor a luxury sedan. I am basically a pedestrian, who just likes a better airline seat (even though I am not a big or tall guy).

 

[daylatedollarshort]

No, I have flown business class and 1st class on Qantas (I did not have to pay), and the difference is not worth the money.

I am a modest guy, and do not wish for a private plane. The reason for business seats is that I love to travel, and can do that quite economically (no fancy hotel, luxurious resorts, etc...). But what keeps me from traveling more is mostly the cramped seat.

PS. Similarly, I do not crave for a fancy sports car (see the other thread about Vette and Porsche), nor a luxury sedan. I am basically a pedestrian, who just likes a better airline seat.

Okay, I can relate. I have my little luxuries I enjoy, too, that other people here would not choose to spend money on.

Have you looked in to the frequent flyer hacks for free air travel and upgrades? That is one of my next projects.