Question for other LBYM'ers

[W2R]

Do you have a hard time letting go of your hard-earned money, even to invest it?

I am just starting to invest substantial sums in my taxable account. I have found the experience to be exhilarating at first, with a rush of feelings like danger and excitement such as I get on the rare occasion when I have gambled. But also my feelings are similar to having hit myself really hard on the thumb when hammering - - enough to take my breathe away!

I know logically that I have to invest if I am going to beat inflation, but gee. Does it get any easier, or do you just brace yourself and do it anyway?

 

[lazygood4nothinbum]

either i leave it in the house or in the market or under the mattress. i don't know what else to do with it. open a business?

 

[Notmuchlonger]

Its not a problem for me. Since I know logically I cannot afford to retire if I put it all into fixed income. My money would not last through an extended retirement.

 

[W2R]

You're right. Maybe I just have to get used to this.

 

[Nords]

Do you have a hard time letting go of your hard-earned money, even to invest it?
I know logically that I have to invest if I am going to beat inflation, but gee. Does it get any easier, or do you just brace yourself and do it anyway?

I was pretty tight with a buck the first few years of ER (as I was for the first 40+ years of my life) but I've relaxed over the last couple years because our portfolio growth has greatly outstripped our spending. So as your investments start compounding your emotions may agree with your logic.

Another consolation would be that if you're looking for discounted investments then you're doing so at the right time.

One of the aspects of our ER that gives us the confidence to invest in a high-equity portfolio is... a COLA-adjusted annuity. I bought mine from the U.S. military but Vanguard has competitive prices without that pesky "customer death or disability" issue. An annuity might be worth researching for its sleep-at-night qualities.

 

[Gotadimple]

Investing Hard Won$

I know logically that I have to invest if I am going to beat inflation, but gee. Does it get any easier, or do you just brace yourself and do it anyway?

But if you hold onto it so that it doesn't have a chance to grow, where are you with your plan?

I agree with you WTR that some of the sums of money that need to be invested are daunting when you think how long you worked to earn them, but, it needs to work for you now.

-- Rita

 

[growing_older]

I've been invested in various market mutual funds for so long, I'm pretty sanguine about it now. I think the high anxiety will fade with time and experience. Have you not had equity investments in your tax sheltered savings for some time? Does that no longer have the same edgy feel to it?

 

[Arc]

Very easy for me. I've trained myself to be jubilant about the market - always. When it is up, my portfolio looks great and I feel smart. When it is down I feel smart because I am accumulating at discounted prices. At 43 I still have time on my side. Hope I can retrain myself - if needed - in the ER phase. Looking forward to the challenge.

 

[Coach]

It's easy for me, because all my investing is done by automatic withdrawal. Having a significant lump sum to deal with would probably make me a bit more nervous.

Coach

 

[mb]

Now, it's easy as pie.

Twenty years ago I used to worry a bit about "investing at the peak." Since I have been dollar cost averaging through both up and down markets it has not been a problem.

I do have about $50k (down from $80k) in an inherited MM that I've been gradually putting into stocks during market dips (market timing, gasp) rather than putting it in all at once.

MB

 

[Moemg]

Since I don't want to sleep on a lumpy mattress the money is invested . I lost more in some days than I've made working that year and I still sleep well .

 

[Goonie]

Very easy for me. I've trained myself to be jubilant about the market - always. When it is up, my portfolio looks great and I feel smart. When it is down I feel smart because I am accumulating at discounted prices.

It's easy for me, because all my investing is done by automatic withdrawal.

Yeah, what they said!

I have things set up on auto-pilot, which helps keeps my emotions from having the ability to control my investing. IOW, I have a plan and I'm stickin' to it!

And like Arc, on the 'up days' I'm happy 'cause I'm making money.....and on the 'down days' I'm happy 'cause I'm buying 'on sale'! So everything's coming up roses!

 

[mickeyd]

Does it get any easier, or do you just brace yourself and do it anyway?

Pass the pie please.

If you believe in efficient markets, are broadly diversified, and have an AA that fits your situation and time horizon it is no more difficult than deciding what movie you want to see tonight.

 

[Arc]

I lost more in some days than I've made working that year and I still sleep well .

Congratulations Moemg - that is just sweet! For me that could be the definition of FI! Of course there must be those days when the large swings go in the other direction. Perhaps one day I'll get there. In the meantime w*ork, w*ork and more w*ork.

 

[W2R]

What terrific responses. I don't know which one(s) to single out and answer, because they are all gems.

In answer to some of your questions, I do have a plan, and I am following it. And yes, I have invested in my 401K (TSP) before with no fear, but that is automatic and steady investing of much smaller amounts than this lump sum investing, and the government funds don't scare me very much (we're the feds, and we're here to help? LOL). Really, the lump sum was just a small part of my eventual portfolio that I invested pretty conservatively, though it was a huge amount to me since it represents more than I have spent in several years.

I was really encouraged to read the posts by Nords, Arc, and others pointing out that I am probably buying low, since the market is pretty unnerving (to me) right now. You're right - - the prices were low. I just need to be more optimistic and stop worrying so much.

Just reading this thread is already helping me to feel less freaked about spending that money on mutual funds. Thanks.

 

[HFWR]

Not sure which category I fit in, but, market gyrations notwithstanding, I was/am always thrilled to be investing/saving. I remember times when the choice was "gallon of gas, or quart of oil"...

You are [-]shittin' in high cotton[/-] blessed if you are able to live a nice middle-class or above lifestyle while saving 20-30% or more of your salary...

 

[P.S.]

Do you have a hard time letting go of your hard-earned money, even to invest it?

yes. we need to set up an auto pilot plan so that monies, like that destined for retirement accounts, requires no regular acknowledgement or divying.