Some early retirees have second thoughts

[Finance Dave]

Quote:

Originally Posted by liman I can relate to the article. I retired at age 52 in August, 2007. I had planned it out for a long time. Four months later I had had enough and began thinking about getting back to work. Credit crunch lunacy, skyrocketing inflation, tanking stock markets. A very depressing and nerve racking time to retire early. Seeing people falling on hard times all around me, and I sure did not want to be in their situation. Glad to be back at work, at least for the next couple of years.

Skyrocketing inflation? What country do you live in?

I realize we have relatively high inflation in the US compared to the past 25 years or so, but I would not call it "skyrocketing". When it's 20% or so, come back and we'll talk.

[cute fuzzy bunny]

Doesnt sound like it was a very good plan if four bad months derailed it.

[dex]

Quote:

Originally Posted by cute fuzzy bunny Doesnt sound like it was a very good plan if four bad months derailed it.

Not to pile on but, I must agree.

I'm guessing he omitted the the cash flow planning aspect.
2-3 years of expenses in cash or low risk investments.

[2B]

Quote:

Originally Posted by cute fuzzy bunny Doesnt sound like it was a very good plan if four bad months derailed it.

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?

[cute fuzzy bunny]

Hey dont look at me. I retired in early 2001 right as the stock market slid into a huge hole in the ground. But I guess people werent getting hit from every direction like they are today. Although the stock "correction" is a little easier to take this time.

I'm not sure where I'd throw the anchors right now. I guess its just spread it around and wait for something to recover.

[REWahoo]

Quote:

Originally Posted by cute fuzzy bunny I'm not sure where I'd throw the anchors right now. I guess its just spread it around and wait for something to recover.

Pork belly futures. It ain't bacon yet, but it's gonna be!

[CuppaJoe]

Quote:

Originally Posted by 2B I'm starting to think that a significant percentage of the population (including this forum) have no knowledge of finanial events prior to 2003. ....

--
This forum really has changed in the last year. You would be shouted out of the room a year ago for growling like a bear cub. What I sense here is that the most vocal people in the finance section may be short traders. How many of us think of equities as strictly long term investments? Anything I've got in equities is 15+ plus; I choose 15 because that may be beyond my life expectancy. Have we done a poll on this?

[W2R]

Quote:

Originally Posted by 2B 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?

I was maxing out my 401K prior to 2003, but was pouring everything else into my down payment and then principal on the mortgage for my house. Even so, the market seemed worse to me then than now.

I wonder if maybe a lot of those who are freaking out about the economy, live in "real estate bubble" locations where the bubble has popped. Those who hitched their wagon to the real estate star in areas where real estate has crashed, are probably in a state of shock.

[REWahoo]

Quote:

Originally Posted by CuppaJoe -- I choose 15 because that may be beyond my life expectancy. Have we done a poll on this?

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

[haha]

Quote:

Originally Posted by CuppaJoe -- This forum really has changed in the last year. You would be shouted out of the room a year ago for growling like a bear cub. What I sense here is that the most vocal people in the finance section may be short traders. How many of us think of equities as strictly long term investments? Anything I've got in equities is 15+ plus; I choose 15 because that may be beyond my life expectancy. Have we done a poll on this?

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

[Leonidas]

Quote:

Originally Posted by 2B 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]

Quote:

Originally Posted by REWahoo 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]

Quote:

Originally Posted by haha 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]

Quote:

Originally Posted by CuppaJoe 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]

Quote:

Originally Posted by haha 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]

Quote:

Originally Posted by 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)

--
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]

Quote:

Originally Posted by CuppaJoe -- 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.