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1278 clicks; posted to Business » on 17 May 2022 at 12:21 PM (7 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



19 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-05-17 12:27:32 PM  
I pulled my money out earlier this year to put the money to use elsewhere and I couldn't be happier, but it had nothing to do with fear of losses.  Timing the market is essentially pure luck
 
2022-05-17 12:39:35 PM  
Having ridden out seven market "crashes", I'll ride this one out as well. I retired in 2004 and currently have about an 8X gain.  I have a friend who panic sold the first time her IRA dropped. I could not get her to leave her investments alone.
 
2022-05-17 12:50:57 PM  
What a dumb story.

Stonks go up. Stonks go down. People make money. People lose money.
 
2022-05-17 1:00:13 PM  
I would like to throw out there that you can add conditional orders to sell. No reason not to have pretty much everything auto sell after a 20% drop (or 21%, 18%, etc. Whatever is comfortable to you). You can always manually reevaluate, it is just there in case you get surprised by a selloff. Maybe even a lower % if you were getting ready to liquidate or feel like your position is neat a top.

Something volatile like Tesla, meme stocks, and CRYPTO should be set like this.
 
2022-05-17 1:02:51 PM  
I put it all in Frozen Concentrated Orange Juice.
 
2022-05-17 1:04:12 PM  
I can only speak for myself but it's only reasonable to count on something like 7-10% on the market, over enough time. And it will feel like less when you add in some inflation.

The gains I was getting were insane and unsustainable.

I'm don't see it as lost money, it's imaginary money I never had and still don't have.
 
2022-05-17 1:08:01 PM  
At the same time, 49% of men sold stocks due to a negative event, compared to 24% of women.

https://www.cnbc.com/2021/10/27/why-women-get-better-returns-on-their-investments-than-men.html

This is known.  Men are more likely to imagine themselves as Gordon Geckos making moves when they should just stay put.

The even more successful investors are dead.  They never sell:  https://www.morningstar.com/articles/964493/from-the-archives-in-praise-of-the-dead-investors
 
2022-05-17 1:11:50 PM  

natazha: Having ridden out seven market "crashes", I'll ride this one out as well. I retired in 2004 and currently have about an 8X gain.  I have a friend who panic sold the first time her IRA dropped. I could not get her to leave her investments alone.


I think this covers it.

/retired 2020
//remember all of them from 1987
///was actually working in NYC in 1987 as a developer working for a company supplying real time graphic trade data to all the major Wall Street firms when it hit the fan (pre internet).
//// For retail investors (like myself), don't try to time the market, don't panic sell, do you research before investing,
 
2022-05-17 1:18:45 PM  

Fark_Guy_Rob: I can only speak for myself but it's only reasonable to count on something like 7-10% on the market, over enough time. And it will feel like less when you add in some inflation.

The gains I was getting were insane and unsustainable.

I'm don't see it as lost money, it's imaginary money I never had and still don't have.


Same, happy but returns were unrealistic to be sustained.

Found this...

10-year, 30-year, and 50-year average stock market returns
Period Annualized           Return (Nominal)$1 Becomes... (Adjusted for Inflation)
10 years (2012-2021)              14.8%                                   $3.06
30 years (1992-2021)              9.9%                                     $5.65
50 years (1972-2021)              9.4%                                     $6.88
 
2022-05-17 1:22:49 PM  
Cashed out a penny stock at a 14% loss. Don't regret a thing, considering the value tanked 78% from my position thereafter
 
2022-05-17 1:23:16 PM  
csb/
Between my IRA accounts and 401k I've "lost" about $80k.  I am shoveling money into my 401k as fast as I can because this is prime Fire Sale time.
/csb
 
2022-05-17 1:31:49 PM  

Bannanaslug: I would like to throw out there that you can add conditional orders to sell. No reason not to have pretty much everything auto sell after a 20% drop (or 21%, 18%, etc. Whatever is comfortable to you).


One reason not to have sell/limit orders in place all the time is that it's market timing and you'll end up with less money.

I don't always trade, but when I do, I usually put a limit whether buy or sell. So I find it a valuable feature, but it's not a magic way to make market timing work or even suck much less.
 
2022-05-17 1:45:15 PM  

OccamsWhiskers: Bannanaslug: I would like to throw out there that you can add conditional orders to sell. No reason not to have pretty much everything auto sell after a 20% drop (or 21%, 18%, etc. Whatever is comfortable to you).

One reason not to have sell/limit orders in place all the time is that it's market timing and you'll end up with less money.

I don't always trade, but when I do, I usually put a limit whether buy or sell. So I find it a valuable feature, but it's not a magic way to make market timing work or even suck much less.


I used a limit only once back in 2014. I had company stock options (given to me pre public, when hired in 2004, went public in 2006) that were close to expiring, they were actually in the money and not underwater (only ones I ever had that ended up in the money). Ended up selling just 20 cents short of the highest the stock ever was. I claim NO magic expertise, just dumb luck. I used the limit because I knew it was time but kept hesitating. Put the limit on and waited for the email :-).  Stock was at 88+ then, now at 61. Bought my Camry (which I still have), and reinvested the rest. Retired now, but have not touched that investment.
 
2022-05-17 2:09:11 PM  
My grandparents were a couple that pulled stocks out when they retired, to invest in bonds. They pulled out right when the market was down, despite advice to just wait a while until it rebounded. Of course they ignored the advice and we had to listen to about 20 years of them complaining about "All that money we lost in the stock market."
 
2022-05-17 3:33:16 PM  

mrmopar5287: My grandparents were a couple that pulled stocks out when they retired, to invest in bonds. They pulled out right when the market was down, despite advice to just wait a while until it rebounded. Of course they ignored the advice and we had to listen to about 20 years of them complaining about "All that money we lost in the stock market."


I have a competent financial advisor providing guidance.  He told me early last year the fund managers knew the market was getting hot and would soon be cashing in on their gains.  Those guys always analyze market conditions and know when to start pulling back.  Anyway, my 401k management company tries to provide guidance that seems to include telling people over age 50 "YOU'RE OLD AND NEED TO TRANSITION TO BONDS!!!". I have 1% of my 401k in bonds with the rest in aggressive small and mid-range stocks.
 
2022-05-17 4:14:31 PM  

Chief Superintendent Lookout: mrmopar5287: My grandparents were a couple that pulled stocks out when they retired, to invest in bonds. They pulled out right when the market was down, despite advice to just wait a while until it rebounded. Of course they ignored the advice and we had to listen to about 20 years of them complaining about "All that money we lost in the stock market."

I have a competent financial advisor providing guidance.  He told me early last year the fund managers knew the market was getting hot and would soon be cashing in on their gains.  Those guys always analyze market conditions and know when to start pulling back.  Anyway, my 401k management company tries to provide guidance that seems to include telling people over age 50 "YOU'RE OLD AND NEED TO TRANSITION TO BONDS!!!". I have 1% of my 401k in bonds with the rest in aggressive small and mid-range stocks.


True, their transition to bonds should have been a gradual process started some years before.

Friends of my mother did something similar. Rich (husband) had investments and when they were falling it was Peggy who wanted to sell. "Look at all the money we're losing!" She was advised that it's just a downturn, it will rise again, etc. Nope, couldn't wait, she had to SELL NOW BEFORE WE LOSE MORE!

It's been like 25 years of her repeating the story of "All that money Rich lost in the stock market..."

If he shot her for nagging about that one more time, I'd acquit if I were on the jury.
 
2022-05-17 5:00:35 PM  

mrmopar5287: True, their transition to bonds should have been a gradual process started some years before.


Why would anybody transition to bonds in the last 15 years? Even now the yields and rates suck.


DrKillPatient: I think this covers it.

/retired 2020


If you don't mind me asking, how much have you stayed in equities? I'm planning on doing the same as my father when I retire in 10-15 years and remain completely in equities since I have no plans to spend it all, but I would welcome some insight from a recent retiree.

/joined AARP over the weekend
//$45 for five years
///I'll save that on hotels this summer
 
2022-05-17 5:32:34 PM  

madgonad: mrmopar5287: True, their transition to bonds should have been a gradual process started some years before.

Why would anybody transition to bonds in the last 15 years? Even now the yields and rates suck.


DrKillPatient: I think this covers it.

/retired 2020

If you don't mind me asking, how much have you stayed in equities? I'm planning on doing the same as my father when I retire in 10-15 years and remain completely in equities since I have no plans to spend it all, but I would welcome some insight from a recent retiree.

/joined AARP over the weekend
//$45 for five years
///I'll save that on hotels this summer


Yup, AARP member. Went from 70/30 to 60/40 (equity/bond) starting a year/18 month ago. Retired since 10/2020. Every person is different. Wife is still full time so medical is not currently an issue.  I have never been completely in equities. 70/30 for an extended period. Starting to look at income preservation funds given I will be 63 next month. Will more than likely be switching more to bonds sooner rather than later.

"What Is Capital Preservation? Capital preservation is a conservative investment strategy aimed at protecting your money and avoiding loss inside your portfolio. It is often used by retirees or people approaching retirement who have a low risk tolerance and short-time horizon."

Here is an old rule of thumb (very old). Not sure how pertinent to today...

"What Is the Old Rule About the Best Portfolio Balance by Age? The old rule about the best portfolio balance by age is that you should hold the percentage of stocks in your portfolio that is equal to 100 minus your age. So a 30-year-old investor should hold 70% of their portfolio in stocks."

Lots of good stuff on line. But stick with known entities. Have a bunch of stuff with Fidelity for a long time. Their research tools are excellent. Had little knowledge 20 years ago, but learned.
 
2022-05-18 12:09:21 PM  

DrKillPatient: "What Is Capital Preservation? Capital preservation is a conservative investment strategy aimed at protecting your money and avoiding loss inside your portfolio. It is often used by retirees or people approaching retirement who have a low risk tolerance and short-time horizon."


Yep, I'm familiar with it. I also have a lot of my assets with Fidelity. I suspect people choose their strategy based on their anticipated needs and assets. My wife and I have been maxing-out IRA and 401(k) contributions our whole lives. I have no plans to spend it all. I have it all in equities (although some of those are lower risk). In fact my financial planner has confirmed that my savings will continue to grow throughout retirement. My kids will end up with $5-6M that they won't expect.  I'm very thrifty and can do almost everything to maintain my own home. I'm already saving nearly 50% of my income and I'll be working another 14 years (unless Single Payer comes around). My cheapness will keep me employed until 65 because healthcare through the ACA is nuts when you are 50+.

Fortunately my kids know nothing of this. All they know is that mom & dad make too much to qualify for need-based financial aid so those grades better stay high if they want to avoid crippling student debt. If all goes as planned in 30-40 years they will be in a similar situation.
 
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