How has your portfolio performed

[ziggy29]

OK, I fit that description. No pension, no SS (yet), living 100% on withdrawals from 45/55 portfolio - down 20% from last summer's high point.

What's your drawdown/withdrawal rate? Just curious, because just as I think it would be easier to take the recent drubbing if one gets a generous pension and SS, I also think it would be easier to take if you were living off of 2% a year instead of 4%.

Even though 4% is pretty well tested for a portfolio in the 50-70% equities range, it still takes quite a bit of fortitude to be withdrawing 4% in this market without nervous tics.

 

[Moemg]

. But it won't keep me from sleeping at night.

Thanks but money never keeps me from sleeping at night and though a tad aggressive I've had my assest mix a long time and it has weathered some incredible drops . I think time in the market is the true test of your allocation and with me I like things slightly spicy even when it gives me heartburn.

 

[W2R]

I notice that most of the people who have posted so far seem to have losses that are exactly the amount the market lost, but I haven't seen anyone post yet whose portfolios have gone down signicantly more than the market.

As an example, if someone has an asset allocation of 50% equities, 50% CD's, their losses could be expected to be less than half the equity market loss.

If their losses are exactly the amount that the market lost, then I would expect that might already include expenses after some belt-tightening.

 

[dex]

I
I'd like to see more posts from people who are living off their portfolios.

I'm doing that.
As of today - Net worth - excluding house - Down 8.0% from 12/31/07 - I don't track it from the high.
I'm down 2.8% from 12/31/06.

As I said earlier I think people are making a psychological mistake comparing it to the high.

 

[W2R]

Thanks but money never keeps me from sleeping at night and though a tad aggressive I've had my assest mix a long time and it has weathered some incredible drops . I think time in the market is the true test of your allocation and with me I like things slightly spicy even when it gives me heartburn.

Good! I am glad to hear that you are not losing any sleep over the market. Neither am I. In fact, this morning I overslept again.

 

[W2R]

As I said earlier I think people are making a psychological mistake comparing it to the high.

That is so true. They are beating themselves up (psychologically), needlessly. On the other hand, I guess we have a need to do this.

 

[Lsbcal]

...As I said earlier I think people are making a psychological mistake comparing it to the high.

Good point. The main reason I track the high water mark of our portfolio is to use it as a trigger to rebalance out of equities.

 

[Gotadimple]

I'm down 3.3% YTD. I worked to mid-year and have been living off my portfolio since then. AA is 39/7/39/15 (equities, international equities, bond, cash). It's a little out of whack, but I won't rebalance until January (when the non-cola pension kicks in).

Social Security is many years away.

-- Rita

 

[REWahoo]

What's your drawdown/withdrawal rate?

Even though 4% is pretty well tested for a portfolio in the 50-70% equities range, it still takes quite a bit of fortitude to be withdrawing 4% in this market without nervous tics.

Our first year (2005) w/d rate was ~4.5%. With the decline over the past few months this years drawdown will be ~6.5% of our now leaner portfolio.

No nervous tics yet - perhaps I'm suffering from nerve damage. The fact DW and I are only a year or so from SS eligibility is nice and certainly helps my outlook.

 

[free4now]

I'm doing that.
As of today - Net worth - excluding house - Down 8.0% from 12/31/07 - I don't track it from the high.
I'm down 2.8% from 12/31/06.

As I said earlier I think people are making a psychological mistake comparing it to the high.

Thanks for the numbers. I'm down 15% since 12/31/07, or 5% from 12/31/06. 70/30 and FIREd.

 

[Lsbcal]

Forgot to mention in addition to tracking the portfolio high water mark I also track the portfolio low water mark. Should be a reminder to rebalance into equities -- hard as that may be.

 

[shotgunner]

I was tracking against my highwater mark because of natural tendency and to see how it correlated to the highwater mark of the S&P 500 which was well into Bear territory as of yesterday.

I am six months in to Semi-FIRE. I presently working part-time which as reduced my draw to about 2% annually. If I did not work at all my draw would be about 3.5 to 3.8%. So about 1% of my dip this year is due to drawdown.

Using YTD performance my portfolio is doen about 10.3% as of yesterday with 6 months draw.

I am 51 1/2, been investing since I was 25. I have seen market corrections but this is the first time when not fully employed and accumulating. Sort of like being thrust into combat for the first time. It feels WAY different.

 

[Meadbh]

Not looking. Too painful. Glad to be in the accumulation phase. DCAing. Have decided to change asset allocation at the next market peak. Hoping the next market peak will occur before planned ER date! If no sign of peak, ER might wait a bit.

 

[Zathras]

I'm down about 3% with bonds counted (20/80). Retired and living completely off my portfolio.
However, my income flow from the dividends has increased in the last year, so I really don't care if the market takes a hit as long as my dividend increases keep up with, or surpass (as they have) any dividend cuts.

 

[FIREd]

Still in the accumulation phase, 65% stock/35% bonds & cash, portfolio down 10.6% YTD (as of 9/15). I added plenty of new money to my investment accounts this year (higher income and lower spending). Still throwing as much as I can to the market even if it feels like speeding towards a wall. But... I am keeping the faith.

P.S. Despite the market turmoil my passive income is actually up 10% compared to last year, so at least something is working.

 

[harley]

We're two years retired and living entirely on our assets. I do have health care through work, but I'm currently paying over $600/month (two of us), so it's not free. I continued working long enough to be included mostly for the guaranteed coverage, since we both have pre-existing conditions that would make it hard to find affordable coverage on our own.

I don't have a clue where my portfolio is, other than down. I don't like to look, although as you may know from another thread I am freaking a bit about when to lump sum or start DCAing a fairly decent chunk of cash. But I have no intention selling out anything just because of the current market gyrations. I'm more interested in figuring out how to migrate my existing CFA held investments into my Vanguard account, without giving the gov't any more in taxes than I can avoid.

And I echo the advice to the OP. Don't sell when things are down. I went through the 2000 bubble burst, and it was very disheartening. But over time most things recovered, or at least did much better than they would have if I had sold and left them in cash.

 

[W2R]

Yesterday the Dow lost around 505 points.

On March 18th of this year, the Dow went up around 420 points.

Just thought that might help some of us, in some way.

 

[haha]

Still throwing as much as I can to the market even if it feels like speeding towards a wall. But... I am keeping the faith.

If Americans don't buy these quality companies at the prices they are selling at now, foreigners will. As long as we don't buy some financial firm that turns out to be on thin ice we should do well with good stocks at current levels.

There are still large pools of money in the world looking for return. Once this turns we might see some real fireworks. Look at the huge premiums some buyouts have had. BUD for one.

America is a very successful industrial economy that produces healthy exports of quality goods.

So I really don't think we need to be frightened- and this is from a guy who is almost entirely in stocks or junky bonds and who has no safety net.

Until the last few days I was still up a little since October- but these last days have taken care of that. My only wish is that I had more dry powder, and more brains.

Ha

 

[Gworker]

Several people have asked me how my TSP is doing or how much money have I lost. I haven't looked at my TSP balance in a few months. I also have an inherited IRA that I use for vacation money, I've been afraid to look at that. I figure I'll just keep plugging away, I turn 39 next month so I have over 10 years to go until I'm eligible to retire. I'm hoping in 10 years I'll be thinking back how great it was to fill up my TSP with the fire sale.

There are a few guys in my office who wanted to retire soon but are delaying because of losses.

 

[W2R]

Several people have asked me how my TSP is doing or how much money have I lost. I haven't looked at my TSP balance in a few months. I also have an inherited IRA that I use for vacation money, I've been afraid to look at that. I figure I'll just keep plugging away, I turn 39 next month so I have over 10 years to go until I'm eligible to retire. I'm hoping in 10 years I'll be thinking back how great it was to fill up my TSP with the fire sale.

There are a few guys in my office who wanted to retire soon but are delaying because of losses.

My TSP hasn't lost much at all, since I am mostly in G Fund which is guaranteed not to lose money (and for those who don't know, its availability to us is part of our benefits package). My equities are in my other accounts.

On the other hand, I won't have the big gains you will have due to filling up your TSP with equity funds when prices are low! I am going to retire next year or I probably would be doing that as well. I did it during the 2000-2002 downturn and made out rather nicely once we hit the stronger 2003-2006 economy. Even though I haven't lost much at present, I will lose in the sense of not seeing those gains in my TSP in the future. I will see those gains in my equities in other accounts, though.

 

[willowbeezer]

essentially flat ytd. reallocated to 100% cash in june/july and have been day trading / swing trading with mixed results.

have been up to 70% equities earlier in the year but got out of ags/commodities (especially after ziggy bought into USO). Been nibbling at momentum plays but am and have been flat for several months. Can't handle the volatility right now and risk/reward in not in my favor.

Thought that my net worth will be sufficient for ER but given recent market activities, I am going back to work in October. I need a bigger cushion to withstand these types of markets.

would suggest that folks review their risk tolerance and see if it makes sense to reallocate given the current volatility?

best of luck to all.

 

[ohfrugalone]

I just feel sick! Must not watch news, must go to yahoo page, must not go past a newspaper

 

[Dawg52]

So I really don't think we need to be frightened- and this is from a guy who is almost entirely in stocks or junky bonds and who has no safety net.

Until the last few days I was still up a little since October- but these last days have taken care of that. My only wish is that I had more dry powder, and more brains.

Ha

Ha, this one for you.

YouTube - AC/DC - Big Balls

 

[freebird5825]

hope this is not a duplicate post...i was midway thru composing and it went kaplooey...somewhere...

being a glutton for punishment..i checked again...to see just how my AA plan is working in really ugly times. sometimes the alleged "low point" can be instructive as well as painful.

down 12.42% YTD
10 yr return still hanging at a positive 6.22%
AA is 54/44/2, stocks/bonds/cash, all mutual funds including mucho TE muni bond funds, and US govt bonds

negative numbers on domestic and foreign stocks giving me pause...but staying the course. hang in there, folks.

 

[2soon2tell]

AA 75/25 stocks/bonds YTD down 22% Heavy on precious metals and natural resource stocks. Went from the penhouse to the outhouse between 2007-08