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Wippersnappers

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  • #16





    a) “don’t ever look at my portfolio” 
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    Nah I will look.  You have too.  I probably will not watch financial news though.
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    You won't have to.  During a big market meltdown, the stuff's all over the regular news.  You really can't avoid hearing about it unless you're a hermit living in a cave with absolutely no contact with the larger world.

    It's the sense of panic that was pretty much everywhere that I remember best about the 2008 meltdown.

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    • #17
      @MPMD FTW.

       

       

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      • #18


        Did you bite off more then you could chew in the past?  Do you preach stay conservative until you are a hardened investor? Any words of wisdom?
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        a. Yes, purchased/held individual stocks in my ROTH for a period of about 10 years.  Broke even overall, though more than likely lost relative to an index return over this timeframe.

        b. I have been aggressive in terms of savings and asset allocation.

        c. None that have not been stated before, though avoiding the ego trap of financially 'keeping up the the jones'.


        You young investors that have not been through hard economic times do not know how you will react
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        I have certainly stated such before, though it is always (I believe) in the context of understanding your risk tolerance.

        Some people have great discipline, most do not.  Nothing like making a couple mistakes that an investor money over the long term (selling at a low, using a low value/high cost FA for a couple decades).

        Reading is not the same thing as experience.  Experience IMO changes people/groups of people in ways that reading alone cannot.  For example, my MIL does not allow food to go to waste and her behavior is due experience, the youngest of nine children (therefore the best fed) from a well-off family who fled their home with the clothes on their back because they fled a socialist/communist government.

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        • #19


          You really can’t avoid hearing about it unless you’re a hermit living in a cave with absolutely no contact with the larger world.
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          My wife has described me just like that.

          I do not watch TV. I rarely watch or read the news.

          I do not know many folks that would talk about financial issues unprompted.

          Yes I would hear about it on this forum but I would hope that it would be tempered by some rational individuates.

          I was a student in 08-09 and I remember hearing about the crisis at the time but it did not effect me and I did not notice any sense of panic.  However now I know more people late career and retirement age that would be very effected but I am not one of those people so it would not change much for me.

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          • #20
            Since I'm 10 years out from retirement and have seen the ups and downs the thought of a significant and lasting decline when I am ready to retire remains in the back of my mind but hasn't changed my strategy. For you young whippersnappers I wouldn't be overly concerned at this point because most here are making and saving a considerable amount of money so even if reduced it would be sufficient to have a comfortable retirement starting in your 60s.

            In addition to adequate planning/saving I think it comes down to the luck of the draw depending on when you were born and when you will retire. Am I hoping the market continues to go up into my retirement? Heck yes but if it doesn't I'll manage. That said I continue to carry a significant portion of my portfolio in residential real estate which I consider to be my bond fund but with a likely better return so my stock market holdings remain aggressive at my advanced age.

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            • #21
              You might find this post useful - It's a case study about "Bob " the worst stock timer in history

              https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/

               

              Lesson = Time in market is more important than timing the market

               

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              • #22
                I was a fellow during the last crash and decreased my 401k contributions, felt stupid to put in money and then watch half of it disappear next time a I checked.   one of my co-fellows was buying individual stocks, selling google at around 200 dollars because it was in "free fall".    I agree with not checking your portfolio when the market is down.

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                • #23
                  I of course can't predict how I will react. But I literally look at my portfolio once a year, it absolutely does not feel like real money, it feels like monopoly money. It never landed in my bank account, I never felt like it was "mine". When it goes up, intellectually I know that is good but I don't feel super happy about it. So I suspect my emotional distance and inability to wrap my head around this much money will be helpful. But we shall see.

                  I have a 4 year plan that includes paying off the mortgage. I could see myself deciding to put anything beyond 20% gross income into the mortgage rather than the market if you guys tell me the sky is falling (currently the plan is to aggressively invest in the market for 2 years and then pay off mortgage over the following 2 years). But I'm hoping that is as far as it would go to change my behavior and plan.

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                  • #24
                    I can honesty say market declines don’t affect Fatlittlepig. Why? Let’s say your portfolio is 1million then the next week it’s 900K. You might think oh I just lost 100K.., Fatlittlepig would argue that the 1 million was never yours to begin with, that was just the value of your holdings at that particular time. Your holdings are still the same just at a different valuation. Fatlittlepig actually finds large downturns kind of exciting, your money being invested is now picking up more shares. It’s all a game, enjoy the game.

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                    • #25
                      I should be panicking but I am not.  I have survived two bad downturns (2000 and 2008)  and will survive this one also.  I am not listening to financial news or changing anything at all.  Why should I maybe panic?  I just retired 2 weeks ago so it looks like a bad SORR for me.  I cannot change change anything about the market so I have decided to not worry.  If I am not panicking neither should you young guys.

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                      • #26
                        I'm with FLP on this one.  I have a hard time looking at money in a portfolio as mine.  Until it's "cashed out", it's just digital score-keeping to me.

                        If anyone wants to run a test drive on their emotional stability, I'd recommend tossing a little money into crypto.  Up 20%?  Down 40%?  Meh, that's what, like the third time today?  What's new?
                        I should have been a pair of ragged claws. Scuttling across the floors of silent seas.

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                        • #27




                           I just retired 2 weeks ago so it looks like a bad SORR for me.
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                          Congratulations I think. What about your part-time employment?

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                          • #28




                            I should be panicking but I am not.  I have survived two bad downturns (2000 and 2008)  and will survive this one also.  I am not listening to financial news or changing anything at all.  Why should I maybe panic?  I just retired 2 weeks ago so it looks like a bad SORR for me.  I cannot change change anything about the market so I have decided to not worry.  If I am not panicking neither should you young guys.
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                            I think you could survive SORR because don't you have quite a nest egg built up?  I could be wrong, but I thought at one point you thought you might have over saved!

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                            • #29







                              I should be panicking but I am not.  I have survived two bad downturns (2000 and 2008)  and will survive this one also.  I am not listening to financial news or changing anything at all.  Why should I maybe panic?  I just retired 2 weeks ago so it looks like a bad SORR for me.  I cannot change change anything about the market so I have decided to not worry.  If I am not panicking neither should you young guys.
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                              I think you could survive SORR because don’t you have quite a nest egg built up?  I could be wrong, but I thought at one point you thought you might have over saved!
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                              She’s a multimillionaire retiree, nothing to be concerned about at all.

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                              • #30
                                Isn't the correct spelling Whippersnappers?

                                In any case, best wishes to all of you. May you stay the course with great fortitude in both this and the next downturn.

                                 

                                Sincerely yours,

                                Old Fart (also known as white beard, a survivor who somehow managed to stay the course in the '87, '00, and '07 bear markets)

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