Talk me out of selling everything

It seems you have a large enough nest egg. What if you elect to have all dividend/capital gain distributions cash-out instead of re-investing. Then use the cashed out proceeds to pay bills instead of selling equities. This way you are keeping your egg and living off dividends/interest/Capital Gains
 
retired1 said:
It seems you have a large enough nest egg. What if you elect to have all dividend/capital gain distributions cash-out instead of re-investing. Then use the cashed out proceeds to pay bills instead of selling equities. This way you are keeping your egg and living off dividends/interest/Capital Gains
Click to expand...


This is my plan. I'm no longer reinvesting either dividends or cap gains to build up cash to live off of.

We can't live off of what we'd receive yearly in dividends and cap gains but we will continue to work and allow this balance to grow so hopefully we can minimize our selling.
 
ShokWaveRider said:
If stocks are up 6% in 2 days this may be the time to sell.
Click to expand...


Yeah, another bear market rally to suck in the retail buyers. This happens a lot when stock market bubbles start to deflate. It's the top 85% squeezing the last dollars out of the bottom 15%.:D
 
Too funny. We're long-term investors in VG mutual funds, stocks, and bonds. I just looked at the performance over time of VG Bond funds:
VBTLX
VFSUX
VTABX - yes, they paid dividends and we re-invested but all lost over time. Just look at the hisorical charts of these funds.

I also looked at VTIAX (international), which also lost long-term over time. Historical charts give you the big picture.

I look at S & P, Dow Jones, and other equity funds, as big-time winners long-term.

IMO, the point is long-term investing in equities. Bond funds were not a good hedge as they thought.
 
aja8888 said:
Yeah, another bear market rally to suck in the retail buyers. This happens a lot when stock market bubbles start to deflate. It's the top 85% squeezing the last dollars out of the bottom 15%.:D
Click to expand...

Bear market rallies are brutal. Of course the one in July/August sucked in a lot of people. The only thing that has changed is the Fed pivot crowd is back again and oil is on the rise.

The heck with inflation :(

Oh, and North Korea is firing missiles over Japan.
 
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11522914 said:
Bear market rallies are brutal. Of course the one in July/August sucked in a lot of people. The only thing that has changed is the Fed pivot crowd is back again and oil is on the rise.

The heck with inflation :(

Oh, and North Korea is firing missiles over Japan.
Click to expand...


Does anyone have any good news?:(
 
Al18 said:
The S&P 500 is only 25% down from it’s peak. History says 50% drops every few years are common.
Click to expand...




Problem with this statement is people will read this and believe it without checking actual history
:facepalm:
 
lawman said:
Does anyone have any good news?:(
Click to expand...
Sure. Quantum computers are becoming a reality and will change the world for the better.

We got a glimpse of what the future holds for robots. Think about it, no more paying $13,000 a month for skilled care. Buy a robot for price of a car and they'll take care of you.

Artificial intelligence, 3D printing, medical advances, internet of all things, home automation , virtual reality, nano technology, list goes on and on.
 
Seeing the Dow up by 800 pts today as of this moment, might have to tell the OP that not a good time to go all in :popcorn:.
 
easysurfer said:
Seeing the Dow up by 800 pts today as of this moment, might have to tell the OP that not a good time to go all in :popcorn:.
Click to expand...


OP here....
Thanks. I'm taking things slowly. Have sold a bit into this strength but avoiding any major sales. I've bumped my cash for expenses up to 2 years and will continue to do this at opportune times. I'm re-reading this thread for places to put some of these proceeds with a short term time horizon.
 
connor77 said:
OP here....
Thanks. I'm taking things slowly. Have sold a bit into this strength but avoiding any major sales. I've bumped my cash for expenses up to 2 years and will continue to do this at opportune times. I'm re-reading this thread for places to put some of these proceeds with a short term time horizon.
Click to expand...

Not in equities. Money market accounts, CD's. Also do not reinvest your div's. Let them build up. That is one way to start getting away from the 100% equities position. Take this time to find an AA that you can live with. Good luck.
 
connor77 said:
OP here....
Thanks. I'm taking things slowly. Have sold a bit into this strength but avoiding any major sales. I've bumped my cash for expenses up to 2 years and will continue to do this at opportune times. I'm re-reading this thread for places to put some of these proceeds with a short term time horizon.
Click to expand...

Do you have target asset allocations?

You can DCA out (if that's the proper term) as well as DCA in to your target allocations. Set on autopilot to move so much to different asset classes automatically until you hit your targets. Takes the emotion out of the equation.
 
easysurfer said:
Do you have target asset allocations?

You can DCA out (if that's the proper term) as well as DCA in to your target allocations. Set on autopilot to move so much to different asset classes automatically until you hit your targets. Takes the emotion out of the equation.
Click to expand...


I did but didn't like the performance of my bond funds so I moved what was in my Vanguard bond funds to equities.

I'm spending some time on the boglehead site learning more about what an appropriate AA allocation for us should look like.

I'm also taking advantage of as many i-bond purchases as I can make even though limited to $10k per person and then the gift option.

I feel like if I can slowly build up my cash position to cover 3-5 years of expenses I will be in a better place.

There were some thought provoking posts in this same thread about maintaining $ vs so much focus on growing $ and also about having "enough". Got me to thinking more about mitigating my risk and being happy with what we have or will have with more moderate returns. Once I find a good AA I'll just need to get better at standing there instead of doing something :)
 
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connor77 said:
I did but didn't like the performance of my bond funds so I moved what was in my Vanguard bond funds to equities.

I'm spending some time on the boglehead site learning more about what an appropriate AA allocation for us should look like.

I'm also taking advantage of as many i-bond purchases as I can make even though limited to $10k per person and then the gift option.

I feel like if I can slowly build up my cash position to cover 3-5 years of expenses I will be in a better place.

There were some thought provoking posts in this same thread about maintaining $ vs so much focus on growing $ and also about having "enough". Got me to thinking more about mitigating my risk and being happy with what we have or will have with more moderate returns. Once I find a good AA I'll just need to get better at standing there instead of doing something :)
Click to expand...

During the great recession of 2008 ish, I had to trick my mind to not focus on balances and balances were going down down awhile. Instead, focus on all the shares bought on sale. Also, remember to, just a paper loss until you sell. Once again, relying on my AA to keep my emotions out of the picture best I could.
 
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