|
|
Networth Increase Doldrums
05-25-2016, 12:02 AM
|
#1
|
Recycles dryer sheets
Join Date: Mar 2013
Location: NA
Posts: 55
|
Networth Increase Doldrums
Well everyone said that the first $500,000 is the hardest. So far, that has not been our experience. After hitting the $500,000 a year and a half ago after 7 years, we have struggled to get to the $600,000 mark. We were making this increase every 10 months before.
A combination of flat markets, a currency conversion panic mistake on my part, and the fact that my wife has been off work for 6 months without pay after the birth of our twin daughters, has meant things have ground to a halt.
We are Canadian renters and have been watching house prices jump 10-15% per year. It is really hard not to feel like we are falling behind.
Anyways, has anyone else ever experienced one of these savings 'doldrums'? What was your strategy for staying motivated and moving forward?
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
05-25-2016, 02:34 AM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
|
You should be thankful it didn't go down.
|
|
|
05-25-2016, 02:36 AM
|
#3
|
gone traveling
Join Date: Oct 2007
Posts: 1,135
|
Just keep at it. At this stage you are accumulating so just plow as much as you can into savings and get that money invested and working for you
Compounding power is not always linear. There will be slow times and fast times. It's a marathon not a sprint. Some KMS will be slower and some KMS will be faster.
To stay motivated keep your eye on the long term goal top rather than just the short term increments.
New babies definitely slow the accumulation of wealth - kids cost money.
|
|
|
05-25-2016, 05:11 AM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Quote:
Originally Posted by Fedup
You should be thankful it didn't go down.
|
People are getting spoiled with the bull market of 2009-2015, the same as they were in the bull market of 2000. All parties must end at some point, and people go home to sleep. They must rest and recover from the hangover before they can party again.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
05-25-2016, 05:15 AM
|
#5
|
Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
|
Keep saving. Paying off mortgages. Spending less. Work side gigs.
There is only one way to accumulate wealth, and the key word is accumulate. Rely on 130+ years of market history that everything will eventually be OK.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
|
|
|
05-25-2016, 06:23 AM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2015
Location: Michigan
Posts: 5,003
|
I am sure that the last 2 years have seemed hard to you, but you should look at things from a much longer perspective. I have been on the investing road for 35 years, and I recommend that you look at a chart of the stock market which is that long or longer. There have been many periods of 1.5-2 years where one made little to no gains, and also even longer periods where one was down significantly and took years to catch back up. You were fortunate to start into a period of relatively strong markets, and it is human nature to get used to a trend and think that it will always be like that. I went through the 1987 crash, the 2000-2003 bear, and the 2007-2009 bear. That was hard, and I was nervous, but it was the right thing to stick to the plan. I recommend that you read Your Money and Your Brain by Jason Zweig. Good luck and hang in there.
__________________
"The mountains are calling, and I must go." John Muir
|
|
|
05-25-2016, 06:30 AM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,765
|
Quote:
Originally Posted by NW-Bound
People are getting spoiled with the bull market of 2009-2015, the same as they were in the bull market of 2000. All parties must end at some point, and people go home to sleep. They must rest and recover from the hangover before they can party again.
|
You've obviously never been to one of my parties. I wish the people would go home to sleep. I hate waking up hungover and tripping over people on the floor and not being able to find an unoccupied chair or sofa to sit in. I need a better class of friends.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
|
|
|
05-25-2016, 06:48 AM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,695
|
Back in my working days, I had some slow years of growth such as 2000-2003 when it took 2 years to gain $100k. But after that, I was growing $100k a year through the bull years until he market crashed in 2008. It took 4 years to get from $900k to $1M. After a few more years of fast growth, despite my being ERed with no outside (wage) income any more, I still managed to get up to $1.3M but getting to $1.4M will take a long while. I'm not tapping into principal so as long as the investment income can cover my expenses, I won't sweat the "doldrums."
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
|
|
|
05-25-2016, 08:12 AM
|
#9
|
Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
|
Quote:
A combination of flat markets, a currency conversion panic mistake on my part, and the fact that my wife has been off work for 6 months without pay after the birth of our twin daughters, has meant things have ground to a halt.
|
What are you invested in? Are you using a financial adviser?
If you have a lot of cash in the bank, it will not grow. Bonds are similar. Individual stocks, it's a crap shoot. High dividend stocks move less. The S&P will track the market, which is flat over two years, but historically grows.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
|
|
|
05-25-2016, 08:13 AM
|
#10
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,566
|
Quote:
Originally Posted by harley
You've obviously never been to one of my parties. I wish the people would go home to sleep. I hate waking up hungover and tripping over people on the floor and not being able to find an unoccupied chair or sofa to sit in. I need a better class of friends.
|
Well there's your mistake, you need to tell them to bring tents!
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way
|
|
|
05-25-2016, 08:13 AM
|
#11
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
|
What did Warren Buffet say to his executor? Put 90% in S&P 500, 10% in cash and my widow can live off that the rest of her life?
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
|
|
|
05-25-2016, 08:18 AM
|
#12
|
Thinks s/he gets paid by the post
Join Date: Feb 2013
Location: Toronto
Posts: 3,321
|
In the words of that immortal (or is it non-mortal) philosopher Dory, "Just keep swimming".
And don't forget that other great philosopher, 'Stay the course'.
|
|
|
05-25-2016, 03:24 PM
|
#13
|
Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,046
|
I've been trying to hit $500k since late last year and it still hasn't happened, hoping by the end of the year but doesn't seem very promising. As long as we keep piling cash into the market one day it'll pay off, right?
|
|
|
05-25-2016, 03:35 PM
|
#14
|
Full time employment: Posting here.
Join Date: Dec 2015
Location: Vancouver
Posts: 915
|
I totally feel spoiled by the great run over the last few years. After huge gains in our portfolio, it is a bit disheartening to see it stagnate. But I also agree it's better than seeing it heading south.
I'm a bit of a couch potato type investor so it's just "continue what we're doing". One encouraging/motivating factor is the dividend component of our portfolio. It's nice seeing the dividends continue to grow.
|
|
|
05-25-2016, 03:48 PM
|
#15
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
|
Once over a number, one usually falls back and gets another attempt. I've found that it takes at least 3 tries over several months to stay above a milestone.
|
|
|
05-25-2016, 04:47 PM
|
#16
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
|
Quote:
Originally Posted by BigBangWeary
Well everyone said that the first $500,000 is the hardest. So far, that has not been our experience. After hitting the $500,000 a year and a half ago after 7 years, we have struggled to get to the $600,000 mark. We were making this increase every 10 months before.
A combination of flat markets, a currency conversion panic mistake on my part, and the fact that my wife has been off work for 6 months without pay after the birth of our twin daughters, has meant things have ground to a halt.
We are Canadian renters and have been watching house prices jump 10-15% per year. It is really hard not to feel like we are falling behind.
Anyways, has anyone else ever experienced one of these savings 'doldrums'? What was your strategy for staying motivated and moving forward?
|
I'm not sure what you expected, but it's difficult to pile on the savings when you have newborn twins and are temporarily down to one income. Healthy kids are priceless!
As for being priced out of the housing market, if you live in Vancouver, you are right.
http://www.cbc.ca/news/canada/britis...uver-1.3599009
|
|
|
05-25-2016, 08:15 PM
|
#17
|
Thinks s/he gets paid by the post
Join Date: Nov 2013
Location: Twin Cities
Posts: 3,941
|
Maybe it would help psychologically to measure your accumulation of shares over that time period rather than total value. If you're accumulating shares in the down times, it's like drawing back the bow, loading it with potential energy and getting ready to launch the arrow skyward.
|
|
|
05-26-2016, 04:18 AM
|
#18
|
Recycles dryer sheets
Join Date: Mar 2013
Location: NA
Posts: 55
|
Hi everyone and thanks for the replies.
Papadada111 - very true, although our monthly costs hardly increased over the 2 and a half years of our sons life. With three this will be different, but it hasn’t hit us too hard yet.
NW-Bound I agree that the bull market of 2009-2015 has had an impact on our perspective, but to be honest, we weren’t saving nearly as much in the early stages as we were in the end, so we missed out on a lot of that.
DrRoy -thanks. It has been a while since I read it. Maybe I should go back. My concern about the whole 130 years of history is the effect that our not-so-historically precedented zero-interest rate experiment has had on the market and how that will play out. I truly believe we are in a very different investing environment in 2016.
Scrabbler1 - wow 4 years to get to the magic number from 900,000. I can see how that might have been a tad frustrating.
Senator - I am invested in mix of ETFs/mutual funds and have a bond and fixed portion of our portfolio that matches our age and tolerance levels. We do use an advisor but not quite in the traditional sense. We also have ownership of private equity within a soon to be IPO’d company. Only about 1.5% of our net worth is in cash waiting for deployment.
Dvalley – I hear ya. It sometimes feels like being a young kid at the beach. When you get the sand pile to a certain height, the loose grains just keep falling back down again. Maybe add water …?
Meadbh – This is true, and I would not trade them for any pile of money. But they are also another reason to focus on our investment plan. To be honest the lack of progress is pretty unrelated to our kids at this stage as the amount put away each month has not really been significantly impacted.
Markola – I like it. Anything to see some numbers going up
|
|
|
05-26-2016, 06:00 AM
|
#19
|
Thinks s/he gets paid by the post
Join Date: Sep 2014
Location: The Great Wide Open
Posts: 3,804
|
Slow and steady wins the race.
|
|
|
05-26-2016, 06:06 AM
|
#20
|
Full time employment: Posting here.
Join Date: May 2013
Posts: 756
|
Look on the bright side, you're buying (somewhat) low based on an assumed future market rise.....
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|