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letsgobobby
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Post by letsgobobby »

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Stan Dup
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Re: Another 5 year anniversary thread

Post by Stan Dup »

I would like to see some answers to this myself.

But should there be some time limit, like from a certain date until say, 6 months later?

Better yet, I would like to know how fast people recovered. Did it take 1 year, two years, or more?
"The tyranny of compounding expenses is the eighth deadly sin." - George Sisti
technovelist
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Re: Another 5 year anniversary thread

Post by technovelist »

My portfolio did not decline significantly during 07-09, being down perhaps 10% at the lowest point.
It declined about 30% last year, though. :oops:
(Note: I did not have any trouble staying with my AA last year either.)
In theory, theory and practice are identical. In practice, they often differ.
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ruralavalon
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Re: Another 5 year anniversary thread

Post by ruralavalon »

We were both age 62 in 2007, and had a 65/35 asset allocation. Our portfolio dropped 34% from a high in October 2007 through a low in February 2009. We sold Treasury bonds to buy stock index funds in December 2008, to a new 50/50 asset allocation. We used new contributions (contributed whenever money was available) to buy more stock index funds in February, April, July, September and November 2009. We still have a 50/50 asset allocation at age 68.

Recovered to October 2007 value in February 2011, over 3 years.

Our portfolio is now at 125% of the October 2007 value, even though I retired in January 2011 and we have been withdrawing from the portfolio since then.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
dickenjb
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Re: Another 5 year anniversary thread

Post by dickenjb »

On 6/19/2008, my portfolio was x.

On 11/21/2008, my portfolio was .484x

I was only 73.5% equities in June of 2008!

My employee stock options which were worth low 7 figures in June were worth $8100 five months later. Leverage cuts both ways. So even though I was nominally 73% equities, my portfolio had the volatility of 100% equities.

In November 2008 I doubled down and went to 92% equities. Very scary at the time but worked out well in hindsight. Bought my company stock 1 day from the low and it doubled over the next two years. March 2009 was a very grim time for me as a new low came and I thought I was wrong to load up on equities in Nov 2008. Turns out I was right to "back up the truck".

Now I am 60/40 and stick with that allocation through thick and thin. Have given up on "tactical asset allocation", it is too nerve wracking and it is too easy to confuse luck with skill.

I have a huge Excel workbook with a sheet saved every 3 months or so showing my personal balance sheet so it was easy to go back through the data to find out what happened.

Oh, and current portfolio is about 110% of June 2008 peak, even though I retired in August 2010 and have been drawing ever since. And it is better than 110% because I have aggressively exercised employee options once they came back (and they did come back!) and paid the contingent taxes due - so a dollar sitting in muni bonds in taxable is worth more than a dollar in options spread with 40+% in taxes due on it.
peddler12
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Re: Another 5 year anniversary thread

Post by peddler12 »

Hello All,
I'll put my two thoughts in. I was one that sold my ROTH in December of '08. I had sold my TSP much earlier in the year and only lost about 10% in '08, however I didn't go back into the market with my TSP until much later and missed much of the rebound that began in March of '09. My ROTH portfolio peak was October 12, 2007. It was not until July 13, 2012 that I broke even. Had I been following Boglehead principles I would be much further ahead now. I've learned and hope to do better in the future. Thank you all for teaching me how to be a better investor. Last night I almost made a dumb move that was not in my IPS. I made the decision to stick with my IPS. You all taught me that. Again, thank you.
Mike
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grabiner
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Re: Another 5 year anniversary thread

Post by grabiner »

The investments I had at the 2007 peak lost 60% of their value. I was 90% stock, overweighting small-cap, value, and emerging markets, and haven't changed that allocation significantly since 2004. I had to rebalance in October 2008 to get back from 86% stock to 90%.

My balance dropped by only about 50%, as I was still making regular investments.
Wiki David Grabiner
Johm221122
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Re: Another 5 year anniversary thread

Post by Johm221122 »

I only keep records quarterly
133k on October 2006
96.5k onOctober 2009
Steady contributions help


John
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