kumquat
Thinks s/he gets paid by the post
Yes to the first.
And yes, not into cat food yet, WR is now above 3% though.What's my grand prize, another 40% haircut?
All Cash? Low Equity? Got out Early? -- Post Here
- Thread starter TromboneAl
- Start date
Yes to the first.
And yes, not into cat food yet, WR is now above 3% though.What's my grand prize, another 40% haircut?
calmloki
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
We are rental property owners - have a small amount in stocks and keep tossing little offerings on the alter, but can't seem to keep looking brilliant. Bought some gold mining stocks a couple years ago and looked smart when they more than doubled, but didn't sell till they dropped to 1/2 their original cost. Bought BAC last fall when it was a good dividend payer but beat down, then more when it swallowed Countrywide and all thought it was doomed, then yet more when it got down to $22. $3.30 today? Sigh.
The rentals keep chugging along though, tiny vacancy rates, rents increasing, we're getting squeezed between rising costs and fragile income tenants, but owning free and clear is a big help and vindication of our lack of sophistication - just could never understand how you could say you owned something if you were making payments. Values of the properties may be down, but that only matters if we have to sell, which we don't. Also helps that we assigned conservative values to the properties back several years ago and didn't update them - doesn't look like we've lost as much in Quicken that way.
We sold a couple little places a few years ago, just in time for PenFed's 6.25% rate - plunked the money in there for three years, which should get us through 2009.
Been having good luck with private loans we've made on real estate - no one has defaulted yet, the payments have been very prompt, and the 9-12% interest we've charged has been like candy.
Now, if i could just figure out how to get Retire Early out of Real Estate all would be good - still on call 7 days/week and doing 2-4 hours/day. Feeling quite fortunate alll things considered though....
The rentals keep chugging along though, tiny vacancy rates, rents increasing, we're getting squeezed between rising costs and fragile income tenants, but owning free and clear is a big help and vindication of our lack of sophistication - just could never understand how you could say you owned something if you were making payments. Values of the properties may be down, but that only matters if we have to sell, which we don't. Also helps that we assigned conservative values to the properties back several years ago and didn't update them - doesn't look like we've lost as much in Quicken that way.
We sold a couple little places a few years ago, just in time for PenFed's 6.25% rate - plunked the money in there for three years, which should get us through 2009.
Been having good luck with private loans we've made on real estate - no one has defaulted yet, the payments have been very prompt, and the 9-12% interest we've charged has been like candy.
Now, if i could just figure out how to get Retire Early out of Real Estate all would be good - still on call 7 days/week and doing 2-4 hours/day. Feeling quite fortunate alll things considered though....
Well, I am part lucky and part as unlucky as most people in these markets.
I cashed out enough from my mutual funds at the peak in October 2007 to pay cash for a mountain cabin as a getaway place. I was lucky with that timing.
All the rest has been in this lousy market. If I had waited a year, I would not have purchased a getaway place, and I am still very glad that I did.
I cashed out enough from my mutual funds at the peak in October 2007 to pay cash for a mountain cabin as a getaway place. I was lucky with that timing.
All the rest has been in this lousy market. If I had waited a year, I would not have purchased a getaway place, and I am still very glad that I did.
cloudeleven
Dryer sheet aficionado
- Joined
- May 25, 2008
- Messages
- 39
I saw the warnings in the market as early as August 2007 (subprime crisis) and I finally sold all of my stock holdings in January 2008 and moved entirely to money market funds. I have been in money market funds since then.
I believe someone within 10 years of retirement especially should not follow a "buy and hold through thick and thin" policy. At that point you have to actually pay attention to what's going on around you, and protect the assets you have accumulated.
"Buy and hold" is OK during good times. These aren't good times. This market gave plenty of warnings 18 months ago. Pay attention next time.
I believe someone within 10 years of retirement especially should not follow a "buy and hold through thick and thin" policy. At that point you have to actually pay attention to what's going on around you, and protect the assets you have accumulated.
"Buy and hold" is OK during good times. These aren't good times. This market gave plenty of warnings 18 months ago. Pay attention next time.
Bigritchie
Recycles dryer sheets
- Joined
- Jun 13, 2007
- Messages
- 377
Sold everything at 14,000. Went total CD income, which has been great, except I should have locked some CD's in at 6% for longer, got some coming up next month /cry.
Get ready folks the Banksters may be crashing the entire deck of cards to bring in a world currency.
Get ready folks the Banksters may be crashing the entire deck of cards to bring in a world currency.
siamamerican
Dryer sheet aficionado
- Joined
- Aug 4, 2008
- Messages
- 37
Got out in January 2008. At the time, I had high international exposure and couldn't stomach the risk. I periodically jumped back into the markets throughout 2008, ending up 1% for the year. Pure luck? I would guestimate 90% luck and a 10% rational thought.
Got back into the markets when the DOW dropped to 8,000 a few weeks back. I've been doubling up every 500 point drop and currently all in with the exception of a 5 year cash reserve.
I retired at 41 a few weeks ago and am currently traveling the globe, trying not to stress about my portfolio. I believe the markets will rebound in the next few years and if not, there is always a cubicle somewhere that I can start over in.
Got back into the markets when the DOW dropped to 8,000 a few weeks back. I've been doubling up every 500 point drop and currently all in with the exception of a 5 year cash reserve.
I retired at 41 a few weeks ago and am currently traveling the globe, trying not to stress about my portfolio. I believe the markets will rebound in the next few years and if not, there is always a cubicle somewhere that I can start over in.
I'm not as smart as a lot of you. A bit late to the party but I got out on Oct 10th. Right during the big crash #1. Matter of fact... I help it go down. However I didn't sell it all. I only sold off 30%. The reason I got out is not because I'm a market timer rather the stress level was affecting my health. With my 30% still in I'm still losing money. But it could be a lot worse.
Steve O
Recycles dryer sheets
- Joined
- Dec 16, 2007
- Messages
- 291
I saw the writing on the wall and quit my job at a 100% employee owned steel forging company after 19 years in July 2008...
I was making $115,000 year with bonuses at the time and much more than that on appreciation of the company stock
The groupthink (cult) thought that this would never end...
Their business and stock price started going down about 3 months after I left, I wish them the best they were very good to me
I worked much harder than the average guy and I left with $1.93 mil in cash right when everything started going down the crapper
I put about $480,000 all in to the market near the low at Dow 8150 in November 08, I was up $100,000 in Jan 09...
I wanted to sell and lock in at least 1/2 but I decided to leave it and now Im committed to riding it out
Not bad for a guy who quit high school... I started working at that job when I was 20 years old in 1990 for a decent wage of $7.50 an hour for HARD labor
Im 40 years old sitting on $1.45 mil in cash, TIPs, and bonds!!!
I was making $115,000 year with bonuses at the time and much more than that on appreciation of the company stock
The groupthink (cult) thought that this would never end...
Their business and stock price started going down about 3 months after I left, I wish them the best they were very good to me
I worked much harder than the average guy and I left with $1.93 mil in cash right when everything started going down the crapper
I put about $480,000 all in to the market near the low at Dow 8150 in November 08, I was up $100,000 in Jan 09...
I wanted to sell and lock in at least 1/2 but I decided to leave it and now Im committed to riding it out
Not bad for a guy who quit high school... I started working at that job when I was 20 years old in 1990 for a decent wage of $7.50 an hour for HARD labor
Im 40 years old sitting on $1.45 mil in cash, TIPs, and bonds!!!
Steve O
Recycles dryer sheets
- Joined
- Dec 16, 2007
- Messages
- 291
That's 25% stocks, I plan to increase that to 35-40% in small increments soon...
I also want to get the hell out of Chicago and move to Tennessee and buy a house with cash next year
I also want to get the hell out of Chicago and move to Tennessee and buy a house with cash next year
2006-2007: lobbied (unsuccessfully) to have my "retirement money" (trust funds) moved to move conservative investing. Failed. One trust fund moved to new manager (at higher fees, of course). Too soon to tell if my lobbying will have any effect. It's not really fair to expect them to do anything other than invest in stocks, bonds and "cash." Point on my side: my fears about MBS, commercial paper, etc. vice Treasuries sound a bit less paranoid in late 2008 than they did in late 2006.
Things I can control: In EARLY 2004 I cashed out a small IRA and netted maybe $50K. Nearly all of which soon went into gold coins. Since then, I've added slightly to that position. This is my disaster hedge. Also bought a .38 last year. i plan to stock up on some canned goods too (a good idea in hurricane country -- FL.)
No telling what the future holds. I'd love to see my gold drop in value, and stocks come back. At this stage I think Dow 3000 is more likely than seeing 14000 any time soon. That will be the time to buy stocks.
Things I can control: In EARLY 2004 I cashed out a small IRA and netted maybe $50K. Nearly all of which soon went into gold coins. Since then, I've added slightly to that position. This is my disaster hedge. Also bought a .38 last year. i plan to stock up on some canned goods too (a good idea in hurricane country -- FL.)
No telling what the future holds. I'd love to see my gold drop in value, and stocks come back. At this stage I think Dow 3000 is more likely than seeing 14000 any time soon. That will be the time to buy stocks.
TheSweetLife
Dryer sheet aficionado
- Joined
- Jan 2, 2009
- Messages
- 40
I've hesitated replying to this thread, because I've felt bad for so many others that have been hurt so bad by the economic downturn. As a result, I am typically silent on this subject. However, since this is what this thread is about....For 2008, my portfolio actually increased 30%+. I pretty much got out of everything in March of 2008. Then in the fall I purchased some ETF's that were 2x inverse of the DOW and also some S&P put options. For 2009, I'm down 3% and am currently all in cash, hoping for an opportunity to get back in at some point.
The Week Lehman Failed
[FONT="] When Lehman Brothers closed, I remember watching the employees bringing boxes into the office on Sunday night (covered live by CNBC) [/FONT] I threw in the towel, Friday 9/19/2008. I was very uncomfortable having everything I have worked for and saved over 20 years at that much risk with no end in sight.
I am not an experienced investor, went with a gut instinct "Live to Fight another Day" and sold all mutual funds in my 401k and my wife's 401k and put the proceeds into a stable cash value fund in both plans.Got out of the way for a couple of months missing about 35-40% decline.
9/18/2008
100% Equity in 401k.
70% Vanguard VPMCX ($69.49 per share)
23% Vanguard VEXPX ($60.88 per share)
7% Company Stock (Gas & Elec utility) (Did not sell)
12/2008 Started to DCA into these funds
VPMCX 20%
VEXPX 10%
VWIGX 10%
Company Stock 5%
55% Stable Value Fund
[FONT="]
[/FONT]
[FONT="] When Lehman Brothers closed, I remember watching the employees bringing boxes into the office on Sunday night (covered live by CNBC) [/FONT] I threw in the towel, Friday 9/19/2008. I was very uncomfortable having everything I have worked for and saved over 20 years at that much risk with no end in sight.
I am not an experienced investor, went with a gut instinct "Live to Fight another Day" and sold all mutual funds in my 401k and my wife's 401k and put the proceeds into a stable cash value fund in both plans.Got out of the way for a couple of months missing about 35-40% decline.
9/18/2008
100% Equity in 401k.
70% Vanguard VPMCX ($69.49 per share)
23% Vanguard VEXPX ($60.88 per share)
7% Company Stock (Gas & Elec utility) (Did not sell)
12/2008 Started to DCA into these funds
VPMCX 20%
VEXPX 10%
VWIGX 10%
Company Stock 5%
55% Stable Value Fund
[FONT="]
[/FONT]
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