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-   -   Staying the Course? (https://www.early-retirement.org/forums/f28/staying-the-course-37136.html)

Moemg 07-15-2008 08:02 PM

I'm retired and bear markets always make me nauseous but I stay the course . I do have a moderate cola pension and ss survivor benefits . I've been investing since the early 80's so I 've experienced the markets wild ride and frankly I hate roller coasters .

RichoRosai 07-15-2008 08:13 PM

warning: complete and utter noob post; please ignore

I've lost a lot since buying the index fund, but I'm still looking forward to dumping everything I've saved since then into the same fund as soon as possible (based on my understanding of the underlying idea of 'Who knows when it will start going back up?'). The only thing that's causing me to hesitate is the cost of a dollar in yen dropping the last few days and the tantalizing thought that it might continue to drop. I guess I shouldn't be greedy and just do it now while it's at least lower than last week.

joesxm3 07-15-2008 08:19 PM

I am still w*rking and would like to stop in four or five years but who knows.

I had been around 53% equities and increasing to 59% when the recent drop started so I guess I was already in defensive posture. I sold some China funds last fall when they were high and also dumped some left over loser from the tech boom.

In the past month I have added about 1% US total market index, 1% asia and china, 1% latin america and .5% africa and middle east. I also put all of my 401K deposits into diversified international. I am now at about 58% equity with about 39% international.

I am trying to get some VNQ REIT and I bought 1% more yesterday but I only have about 2.5% in REIT and hope to add more up to 5% or 7% as a hedge against expected inflation.

I will probably buy more of all in the next few months. As someone recently wrote "Don't worry if you miss buying at the bottom. You will have a lot more chances in the next few months.".

Marquette 07-15-2008 09:36 PM

Added pertinents to my sig... still working ("Well, I wouldn't call it working, Bob"), two incomes, no kids, etc.

HFWR 07-16-2008 07:49 AM

Single, 53.92 yo, nw about 05.mil...

Canned Retired from semiconductor megaconglomocorp with subsidized health insurance. Now re-employed :'( and will be eligible for a modest non-cola pension in five years. Target is five years, when I'll be eligible for the aforementioned pension, and close to 59.5, then 62...

Mr. Market is currently horse-laughing at my plan.

401K: 10% IGR, 10% PCRIX, 15% SP500, 10% RUSS2K, 10% VGK, 10% VPL, 10% VWO, 20% ST BOND, 5% CASH.
ROTH: VISVX
TAXABLE: VTSMX, VMMXX

maddythebeagle 07-16-2008 07:52 AM

Went 100% stocks and figure having cash sitting around right now is kinda dumb...put more to work...

limpid lizard 07-16-2008 07:54 AM

I have two accounts. The Vanguard is all index and 60/40. Looking at it two days ago, I was down about 4% from when I retired March of 2007. I was DCA'ing into stock up until last week when I ran out of MM funds.

My other account is mostly index bonds, with a little index equities. I live off of this account and it is down about 30% since March of 2007. That includes my withdrawls. I have another 3 years left in it, but watching it shrink through withdrawls without seeing the other account increase is a little nerve racking.

al_bundy 07-16-2008 10:48 AM

reading some rumblings today that we may be close to the end of this bear market. theory is that we'll see the SP500 take one more dive to 1180 or so and it's off to the races

kcowan 07-16-2008 10:51 AM

Beware the financial pornography that emanates from The Street. No one know how bad it will get.

Credit Crisis Losses Pass $1.6 Trillion as Credit Contraction Ensures Recession :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website
What Bridgewater Resources thinks: $1.6 Million in Credit Losses and counting. Not yet all written off!

DblDoc 07-16-2008 11:15 AM

I voted maintaining - although in reality we're slipping behind on our targeted 80:20 AA as the market losses exceed our ability to keep up ^-^

Still accumulating and ~ 10 years from RE

DD

haha 07-16-2008 12:44 PM

Looks like stocks shoot up as well as down-WFC up 25% so far today! And their profit was down, their loss loss provision increased. Only revenues were better than expected. However, they did give a good dividend raise.

I am happy to say that at present, WFC is my only bank stock. I am down to 12% fixed, plus another 3% "enterprising fixed" such as beaten down corporate inflation adjusted bonds. So, if we get a good hard rally, I'll look to lighten up once more in a tax-deferred account. It shouldn't take long at 10%/day.

While it has been easy to be transfixed by the distress in credit markets and banks, there are a lot of other cheap stocks out there. And of course many not so cheap. :)

Ha

Meadbh 07-19-2008 10:36 AM

Staying the course. Unfortunately, cash flow is such that I am unable to DCA into the market right now.

Interesting to experience this ~5 years pre desired FIRE date. All I can say is, I'm glad I haven't pulled the plug yet.

rogersteciak 07-19-2008 11:02 AM

While history may not repeat itself, it does rhyme (according to Mark Twain).

How Bad Could Things Get?
How Bad Could Things Get? - Interactive Graphic - NYTimes.com

Uncomfortable Answers to Questions on the Economy
https://www.nytimes.com/2008/07/19/bu...my/19econ.html

d 07-19-2008 12:30 PM

i'm increasing the number of shares and the $ amount invested, but the decline in prices is decreasing my equity %.

ikubak 07-19-2008 04:02 PM

Staying the course......what other option is there? Sell when the market goes down and then buy back in when it goes back up? I'll just keep doing what I have been doing and I'll keep my 80/20 ratio in my retirement accounts.

hankster 07-19-2008 10:26 PM

Staying the course with approx. 65/35 AA. Planning 9 years to ER at 59 1/2.

RDamien 07-20-2008 07:33 AM

Staying the course. 37 years old, 70/30 AA and if anything I'm wondering if I should go higher into stocks. I feel fine about it. Now whether that's me being naive or smart is debatable I guess ;)

Maybe I'm crazy but I'm kind of excited about it.

ESRBob 07-21-2008 09:50 PM

Nice thread -- staying the course and just did our rebalancing earlier this month. Something about 'stocks down 20%' made me feel it was time to dust off the old rebalancing spreadsheet I'd been putting off all year. When (if!) it goes down another 20% I'll do it again, but probably less comfortably.

Retired and living off SWR from assets. Not feeling much pinch yet as we are 40% stocks, 40% bonds and 20% other stuff like commodities, oil and commercial real estate.

audreyh1 07-22-2008 09:51 AM

Quote:

Originally Posted by ESRBob (Post 687268)
Nice thread -- staying the course and just did our rebalancing earlier this month. Something about 'stocks down 20%' made me feel it was time to dust off the old rebalancing spreadsheet I'd been putting off all year. When (if!) it goes down another 20% I'll do it again, but probably less comfortably.

Same here - ugh! At least until bonds+cash reduces to 10 years expenses - that'll give me pause!

Audrey

toofrugalformycat 07-22-2008 05:19 PM

Staying the course at 60/40 equities/fixed, waiting until 5% out to do anything. Last bear market I procrastinated until about 6.5% out (white knuckles), may do that again because I'm a chicken at times.


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