Announcement

Collapse
No announcement yet.

Lost 10k - Thank You

Collapse
X
Collapse
First Prev Next Last
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Lost 10k - Thank You

    So my wife and I get to celebrate breaking 100k in our retirement savings twice. Once last month and, due to the large stock market drop this week, again this month once my retirement savings post. We lost about 10k on paper in the past week.

    That being said, I owe all of you a big thank you. We’re closing on a house in two weeks with 100k+ down. If I didn’t know any better, I likely would have been “smart” and put our downpayment savings in the market, particularly given the recency bias of the bull market. Instead, I have it safely parked at Marcus.

    Anyways, I’ve never been so happy to lose 10k. We have a solid foundation and a good IPS. My only thought was “man, I wish I had some cash to invest” and “my 403b/457b/backdoor Roth IRA contributions are going to be a steal this month” and “our EF and downpayment are safe” not “oh no, the sky is falling.” I know I am a long way from a seasoned investor who has experienced a true bear market, but the education provided by WCI, the WCI community and the WCI list of recommended books has allowed me to understand personal finance fundamentals. Our downpayment and EF are stashed away safely, we’re saving over 30% of our income in low cost total stock market index funds (have a pension and will add bonds when NW hit my prespecified threshold), minimize taxes, are debt free, are buying a home less than 2x my total gross income and have a job I love with a pretty good salary.

    Thank you all!

  • #2
    Np preciate it
    no worries

    Comment


    • #3
      it’s good that you characterize the loss as “on paper” because you truly haven’t lost anything. You still own the same shares which represents the same fractional ownership in all the same businesses as before.

      good work, and stay the course

      Comment


      • #4
        Congrats on the house purchase. So... when are you having us over for chips & dip? I'll bring a jello mold.
        "Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓

        Comment


        • #5
          EM-CCM MD same... except we bought a little lot and are going to build. Still going to be less than 1x annual income (and that's with the assumed 20% overspend on a build).

          So, I've decided to move my frustration/attention to home building rather than falling market values. Insanity??? Probably.

          Comment


          • #6
            Strong work. I often think I'd wish to have cash on hand in times like this to invest but then quickly realize all the cash I could invest is already invested. It works out in the long run.

            Comment


            • #7
              Originally posted by EM-CCM MD View Post
              So my wife and I get to celebrate breaking 100k in our retirement savings twice. Once last month and, due to the large stock market drop this week, again this month once my retirement savings post. We lost about 10k on paper in the past week.

              That being said, I owe all of you a big thank you. We’re closing on a house in two weeks with 100k+ down. If I didn’t know any better, I likely would have been “smart” and put our downpayment savings in the market, particularly given the recency bias of the bull market. Instead, I have it safely parked at Marcus.

              Anyways, I’ve never been so happy to lose 10k. We have a solid foundation and a good IPS. My only thought was “man, I wish I had some cash to invest” and “my 403b/457b/backdoor Roth IRA contributions are going to be a steal this month” and “our EF and downpayment are safe” not “oh no, the sky is falling.” I know I am a long way from a seasoned investor who has experienced a true bear market, but the education provided by WCI, the WCI community and the WCI list of recommended books has allowed me to understand personal finance fundamentals. Our downpayment and EF are stashed away safely, we’re saving over 30% of our income in low cost total stock market index funds (have a pension and will add bonds when NW hit my prespecified threshold), minimize taxes, are debt free, are buying a home less than 2x my total gross income and have a job I love with a pretty good salary.

              Thank you all!
              If you liked losing $10K, you'll love losing $100K or $1M.

              I realized that I lost more every day this week than I did in all of 2008. Feels good to know I've come so far since then. Hopefully I can lose even more in the next bear market.
              Helping those who wear the white coat get a fair shake on Wall Street since 2011

              Comment


              • #8
                Good job! The key is sticking to your investment policy statement. Jason Zweig had a good column in the Wall Street Journal Wednesday (“The Pros Have to Sell Stocks Now. You Don’t.”) It indicates that today’s individual investors are getting better at staying the course in the face of a market downturn. Sites like The White Coat Investor can take some of the credit for this.

                Comment


                • #9
                  Agree with comments above. You will get to the point in the future when $10k is a rounding error (or less). Or your contribution to your MIL’s living expenses.

                  Comment


                  • #10
                    I echo the above sentiment. While I was down a few hundred thousand in the markets the past two weeks (on paper) and it sounds like a lot, it only represents <2.5% of NW. The trick to mitigating the effects of a correction or even a recession for me was to significantly diversify my investments outside of the markets especially in a late stage bull, maintain a safe one year cushion in cash equivalents (no matter how dumb others say it is), quit contributing when market indicators signaled poor health (for me that was about 2 years ago), continue aggressive savings, continuing financial education, and focus on compounding income alongside investments.

                    Some have 50% of NW in the markets, I've even seen some as high as 90%. I chose to keep it around 12% during the late stage bull. Many say here there are many ways to Dublin, but really believe the stock market is essentially the only way there. From what I read, top 1%, 0.1%, etc. do not agree. It takes time to truly diversify, but those who work to mitigate risks over the decades tend to ultimately wind up in the best position.

                    Enjoy the new home. You'll do great.

                    Comment


                    • #11
                      In a twist of irony, at least around here, the more money you lost in the market the more likely the chance of you actually being better off in the long run.

                      Comment


                      • #12
                        Originally posted by The White Coat Investor View Post

                        If you liked losing $10K, you'll love losing $100K or $1M.

                        I realized that I lost more every day this week than I did in all of 2008. Feels good to know I've come so far since then. Hopefully I can lose even more in the next bear market.
                        Kind of depends the flow of that money supply. Shut that faucet off and your hopes change.
                        Total Returns on an existing pot doesn’t feel good.
                        Total Returns on new money feels great.

                        Comment


                        • #13
                          Originally posted by CordMcNally View Post
                          In a twist of irony, at least around here, the more money you lost in the market the more likely the chance of you actually being better off in the long run.
                          Cord, I did get a laugh there too. TY! Hope to one day lose minions! WCI put it so well:

                          realized that I lost more every day this week than I did in all of 2008. Feels good to know I've come so far since then. Hopefully I can lose even more in the next bear market.

                          Comment


                          • #14
                            Originally posted by EntrepreneurMD View Post

                            Cord, I did get a laugh there too. TY! Hope to one day lose minions!
                            You’ve already lost your minions.

                            Comment


                            • #15
                              Originally posted by CordMcNally View Post
                              In a twist of irony, at least around here, the more money you lost in the market the more likely the chance of you actually being better off in the long run.
                              What do you mean by this? Is it just sarcasm?

                              Comment

                              Working...
                              X