How do you handle the urge to DO something?

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blackfish
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How do you handle the urge to DO something?

Post by blackfish » Wed Jul 18, 2018 7:17 am

The Boglehead philosophy is to decide on your long term investment strategy, allocate your assets accordingly and then do nothing outside of an annual rebalance for the next 20/30/40/50+ years. That is difficult for me because I am a doer, I have to struggle daily to just leave it. My brain knows it is the right thing to do, but my personality feels like I should be more active.

How do you handle the urge to constantly tweak things? To those of you who have a similar disposition as me, do you find this to be a struggle? I am a relative new BH, does it get easier with time? Does anyone allocate a certain amount of their capital to a "play" account to scratch this itch?

ny_rn
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Re: How do you handle the urge to DO something?

Post by ny_rn » Wed Jul 18, 2018 7:19 am

Do non-financial things. Enjoy life.

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Re: How do you handle the urge to DO something?

Post by rixer » Wed Jul 18, 2018 7:22 am

Invest in a balanced fund and forget it.

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Re: How do you handle the urge to DO something?

Post by carolinaman » Wed Jul 18, 2018 7:32 am

Do not read or listen to financial news, especially from sites like CNBC. If you are committed to your AA, short term news should not cause you to do anything.

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Re: How do you handle the urge to DO something?

Post by GmanJeff » Wed Jul 18, 2018 7:36 am

Adopt the PAS approach, which is somewhat more activist than what you outline. Revisit your portfolio quarterly, rather than annually. Not to necessarily make any changes, but to engage in a deliberate evaluation of whether rebalancing is called for either because of a shift from your planned asset allocation model or because your personal circumstances have changed materially enough to warrant a reassessment of your strategy and plan. Doing this quarterly rather than annually will provide not only the illusion of activity, but is actually useful. The trick is to not make tweaks to your portfolio for their own sake, but only when your quarterly review reasonably concludes that some action would be prudent and likely helpful. In other words, the activity you engage in is primarily the quarterly review, with any resultant portfolio changes being incidental.

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Re: How do you handle the urge to DO something?

Post by livesoft » Wed Jul 18, 2018 7:37 am

I go off the grid and backpack in the wilderness for days at a time. When I come back, I discover that nothing has happened.
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Re: How do you handle the urge to DO something?

Post by nisiprius » Wed Jul 18, 2018 7:46 am

If I can't resist, here's how I cope. I don't recommend it or defend it, I'm just saying it's what I do.

1) Engage in meaningless tidying. For example, due to... whatever... I have a ragbag of cashlike funds in my Vanguard account, including Prime Money Market, Federal Money Market, Short-term Bond Index, and Short-term TIPS. The detritus of sloppy and impulse decisions, but harmless. The next time I get the itch, I'll get rid of at least one of them.

2) No big step-changes ever. If I decide that I want to, say, increase my international allocation from 20% of stocks to 25% of stocks, I decide on how long I want to spend on that change--e.g. two years--and I do it in small steps. I increase it to 21% now, and another 1% every six months. The fact that I'm doing something now scratches the itch, but the incremental approach means can halt or reverse the procedure if I have second thoughts a few months down the road. I often make use of Vanguard's automatic exchange program--I set it up and do it automatically. Automatic exchange exist only for mutual funds and I don't know if they are still available on the new platform.

3) I have a strict rule: I never do anything in a hurry, meaning in less than a month. ("What, nevah?" "No, nevah." "What, nevah?" "Well, hardly evah.") Yes, that's right: I decide what I want to do, I make a mental note of it (should be an actual written note of course, but truthfully it's mental), and force myself to wait a month before actually taking action.

John C. Bogle says "Time is your friend. Impulse is your enemy." By following these rules I at least try to average out my impulsiveness over time.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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Re: How do you handle the urge to DO something?

Post by augryphon » Wed Jul 18, 2018 7:47 am

When my mind tells me that I need to act, the most effective way i've found is to click on Bogleheads. I'm back on course in a couple of minutes.

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Re: How do you handle the urge to DO something?

Post by InvestInLife » Wed Jul 18, 2018 7:53 am

Invest in direct real estate. It requires a lot of work.

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Re: How do you handle the urge to DO something?

Post by Cyclesafe » Wed Jul 18, 2018 7:55 am

I plan to make a change when I have the new TurboTax software so I can confirm the full impact of my intention. This means roughly a 6 month average between changes. Half the time the idea would have been worthwhile, half the time it wouldn't have been. Most of the time it wouldn't have made a material difference to my whole portfolio. Go through the cycle enough times and the urge to do something abates.

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Re: How do you handle the urge to DO something?

Post by Doom&Gloom » Wed Jul 18, 2018 7:58 am

I DO something ... else.

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Re: How do you handle the urge to DO something?

Post by GoldStar » Wed Jul 18, 2018 7:58 am

I "do something" monthly. I look at my 401K, my IRA,spouses Roth, and my taxable accounts - I suck them all into a spreadsheet that tells me how far off from my AA I am across all these accounts. I can then decide what fund to make my monthly taxable investment in (Total-Stock or Total-International) and/or re-balance in either the 401K or one of the IRAs from stock to bond.
If the market is down I look for TLH opportunities.
I tilt to SCV and also small tilt to REIT which I suppose makes it a bit more interesting to keep AA aligned.
This is enough for me.

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Re: How do you handle the urge to DO something?

Post by nisiprius » Wed Jul 18, 2018 7:59 am

I also have a notion that "six months is the dangerous time." By that, I mean that every six months or so is about how often I run across something that is really tempting to "try." I'll read some idea and say "That really is convincing, that really sounds worthwhile, I probably should adjust my portfolio accordingly." No. If you can just ration yourself to making three or four changes per decade, I think you avoid the worst of the danger.

Literally staying the course with no changes for thirty years is too difficult. That's why I am skeptical about strategies that are based on backtesting that assume imaginary investors who stayed the course for over thirty years... steadfastly sticking to decades-old portfolios, ignoring all new advice, even from the same people whose advice they accepted in the first place.

But you can at least try to stick to it for several years in a row.

Here are the words not to live by. This is the temptation to avoid. This is exactly what not to do:

Image

No, do not read a quarterly report and "use it in your portfolio right now."
Last edited by nisiprius on Wed Jul 18, 2018 8:04 am, edited 1 time in total.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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Re: How do you handle the urge to DO something?

Post by 2cents2 » Wed Jul 18, 2018 8:03 am

Re-read your Investment policy statement (IPS). If you don't have one, one thing you can DO that will help you in the future (when you get another urge to DO something) is to write your IPS.

https://www.bogleheads.org/wiki/Investm ... _statement

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Re: How do you handle the urge to DO something?

Post by Rick Ferri » Wed Jul 18, 2018 8:11 am

Put a small percentage of your savings in a separate account and trade it as you please. Leave the rest in a buy and hold account. After a while, compare the performance of your trading account to the market. Be honest! The result cures most people.
The Education of an Index Investor: flounders in darkness, finds enlightenment, overcomplicates strategy, embraces simplicity.

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Re: How do you handle the urge to DO something?

Post by bondsr4me » Wed Jul 18, 2018 8:12 am

The "urge" can be kinda tuff at times to handle.
I try and say to myself "what would Warren Buffett do"...this helps me a lot.

I think one way of helping to handle this "urge" is to stay away from the trading screens like Fidelity's Active Trader Pro and Schwab's
StreetSmartEdge. These are very tempting and can help lead you astray.

This is just one reason why I like VG's website....no quotes/indexes screen flashing the temptation to trade.

I also keep some "fun money" to trade with...but NEVER with my or wife's IRA's....those are off-limits...period...NO trading.

CNBC is ok for financial information; I just ignore the "trading" segments of the program.

You just need to have the discipline to avoid the temptation.

Have a great day,

Don

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Re: How do you handle the urge to DO something?

Post by Mike Scott » Wed Jul 18, 2018 8:14 am

Every month or two I do a review of accounts and rebalance if needed but that only takes a few minutes since I really only have two funds across multiple accounts. I do a more complete update at the end of the year with a plan for the next year.

For the sake of "doing" something... I read a lot. I spend time learning about, planning and implementing tax strategies. Being aware allows tax loss harvesting if you have taxable accounts. I churn credit cards for cash and points. I work some "overtime" to bring in extra income. I do a lot of things myself to avoid paying other people to do them.

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Re: How do you handle the urge to DO something?

Post by wolf359 » Wed Jul 18, 2018 8:17 am

blackfish wrote:
Wed Jul 18, 2018 7:17 am
How do you handle the urge to constantly tweak things? To those of you who have a similar disposition as me, do you find this to be a struggle? I am a relative new BH, does it get easier with time? Does anyone allocate a certain amount of their capital to a "play" account to scratch this itch?
It does get easier with time, especially when you start seeing the system working.

Write an IPS, detailing what you're going to do under different circumstances (have new money, need money, market crashes, market goes up by an unexpected amount, etc.) If you want a play account, write in the conditions, like how much, the rules for trading, what happens if you lose it all, what happens if it pays off bigtime.

For each of your holdings, write down why you bought it, and how you selected it. Justify it strongly. By definition, a diversified portfolio has components that zig and zag at different times. In real world terms, that means something is always down. You will always hate part of your portfolio and wonder why you own this thing that is a constant drag on your performance. That's why you need the written justifications.

If you succumb to the temptation to tweak, document it thoroughly. Either keep it in an investing journal or add a notes section to your IPS. What changes you're making, and why. What has changed to change your opinion. Note the dates. And keep tracking the original portfolio. It's usually the tweaks that cause you to underperform the market. This helps document and lock in that lesson.

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Re: How do you handle the urge to DO something?

Post by Tamarind » Wed Jul 18, 2018 8:17 am

Remind yourself that research shows the more you fiddle with your investments, the worse you'll perform.

Then do something ELSE.

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Re: How do you handle the urge to DO something?

Post by smitcat » Wed Jul 18, 2018 8:27 am

blackfish wrote:
Wed Jul 18, 2018 7:17 am
The Boglehead philosophy is to decide on your long term investment strategy, allocate your assets accordingly and then do nothing outside of an annual rebalance for the next 20/30/40/50+ years. That is difficult for me because I am a doer, I have to struggle daily to just leave it. My brain knows it is the right thing to do, but my personality feels like I should be more active.

How do you handle the urge to constantly tweak things? To those of you who have a similar disposition as me, do you find this to be a struggle? I am a relative new BH, does it get easier with time? Does anyone allocate a certain amount of their capital to a "play" account to scratch this itch?
"Does anyone allocate a certain amount of their capital to a "play" account to scratch this itch?"
Over the years we have come to realize that my wife really needs/wants to trade some stocks - just the way it is. About 10 years back we decided to take a specific amount of funds and commit that to her account for trading - once in and no changes.
That solved for the 'itch' and has worked really well for both of us. As time has passed it has become less of an itch and less important.

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Re: How do you handle the urge to DO something?

Post by TwstdSista » Wed Jul 18, 2018 8:43 am

I felt the urge to "do something" this morning. So I wrote a couple checks to contribute to my Roth and my i401k. Heading down to the local Fidelity office this morning to drop them off.

The next time I have an urge to "do something", I'll be able invest said funds. That'll hopefully take care of me for a couple of months.

But tinkering with funds is not something I ever feel the urge to do. My IPS is set, and I solely invest in the very simple three funds -- I find this to be perfect for me. I don't need any complications.

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Re: How do you handle the urge to DO something?

Post by Jack FFR1846 » Wed Jul 18, 2018 8:50 am

Resist the urge? What urge? It ain't my birthday, so it's not time to rebalance. What is this thing that you're afraid of doing? Maybe you need a hobby.
Bogle: Smart Beta is stupid

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Re: How do you handle the urge to DO something?

Post by staythecourse » Wed Jul 18, 2018 8:51 am

My answer... Just don't care. Seems you are too focused on wealth accumulation. The question is would you be tinkering if TSM was up 50% for the year? Probably not. When the market is just okay or down is when folks want to tinker as they are too focused on short term wealth accumulation. They like seeing the dollar signs go up every day/ week/ month in their accounts and start daydreaming that they are now wealthy. It is a waste of time.

If you want to tinker my advice is focus on making more money so you can save more money. Just sitting around and thinking about ways to manipulate your portfolio is a waste of time. Be constructive and make more money.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

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Re: How do you handle the urge to DO something?

Post by jazman12 » Wed Jul 18, 2018 8:52 am

Find a hobby.... :wink:
Act soon... time is running out

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Re: How do you handle the urge to DO something?

Post by blackfish » Wed Jul 18, 2018 9:05 am

Thanks for all the responses! Just to clarify, I am not constantly tweaking my accounts. I haven't touched them since I set my AA, I just want to for some irrational reason.

I probably have too many hobbies, this is just a new one for me. I will focus my desire to do something into continuing educating myself, and if that doesn't quite scratch the itch, I will see what I can do to continue increasing my sources of income to increase the amount I am able to invest.

:sharebeer

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Re: How do you handle the urge to DO something?

Post by Jack FFR1846 » Wed Jul 18, 2018 9:13 am

You'll do fine. If you find that you really, really want to go making changes, come on over to my house on a weekend. This past winter, we got a lot of storm damaged trees that came down, so I need to clean up the brush and cut up the firewood. I have 2 chain saws, so I'll keep you busy.

:D
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Re: How do you handle the urge to DO something?

Post by Charlie Foxtrot » Wed Jul 18, 2018 9:24 am

nisiprius wrote:
Wed Jul 18, 2018 7:46 am

3) I have a strict rule: I never do anything in a hurry, meaning in less than a month. ("What, nevah?" "No, nevah." "What, nevah?" "Well, hardly evah.") Yes, that's right: I decide what I want to do, I make a mental note of it (should be an actual written note of course, but truthfully it's mental), and force myself to wait a month before actually taking action.
Your amusing Gilbert & Sullivan reference did not go unnoticed! "Three cheers and one cheer more!" :sharebeer
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Re: How do you handle the urge to DO something?

Post by Sidney » Wed Jul 18, 2018 9:28 am

Hmmm? I don't know. Will have to think about that.
I always wanted to be a procrastinator.

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Re: How do you handle the urge to DO something?

Post by maj » Wed Jul 18, 2018 9:35 am

I force myself to remember the times past when I have 'done something' and was full of regret quite soon.

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Re: How do you handle the urge to DO something?

Post by The Wizard » Wed Jul 18, 2018 10:00 am

Jack FFR1846 wrote:
Wed Jul 18, 2018 9:13 am
You'll do fine. If you find that you really, really want to go making changes, come on over to my house on a weekend. This past winter, we got a lot of storm damaged trees that came down, so I need to clean up the brush and cut up the firewood. I have 2 chain saws, so I'll keep you busy.

:D
Funny you say that, since I just came back in from splitting and stacking previously sawn logs outside.
Time to check CNBC and see what's happening...
Attempted new signature...

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Re: How do you handle the urge to DO something?

Post by Dottie57 » Wed Jul 18, 2018 10:05 am

I make myself wait a week. The urge is usually gone.

I do the same thing with unexpected urges to purchase something.

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Re: How do you handle the urge to DO something?

Post by danielc » Wed Jul 18, 2018 10:47 am

augryphon wrote:
Wed Jul 18, 2018 7:47 am
When my mind tells me that I need to act, the most effective way i've found is to click on Bogleheads. I'm back on course in a couple of minutes.
That's what I do as well. My list:

- Read the forum and participate.
- Read another BH-like book.
- Handle the treasury portion of the portfolio directly.

All three are financial-type things that will consume some energy. The first two will encourage you to do the right things. The third one is a pretty harmless form of active management. Recently I've been learning about term premia and yield curves and stuff. In the end it really won't matter a lot exactly which treasury you buy.

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Re: How do you handle the urge to DO something?

Post by Sandtrap » Wed Jul 18, 2018 10:56 am

blackfish wrote:
Wed Jul 18, 2018 7:17 am
The Boglehead philosophy is to decide on your long term investment strategy, allocate your assets accordingly and then do nothing outside of an annual rebalance for the next 20/30/40/50+ years. That is difficult for me because I am a doer, I have to struggle daily to just leave it. My brain knows it is the right thing to do, but my personality feels like I should be more active.

How do you handle the urge to constantly tweak things? To those of you who have a similar disposition as me, do you find this to be a struggle? I am a relative new BH, does it get easier with time? Does anyone allocate a certain amount of their capital to a "play" account to scratch this itch?
Sometimes I buy a Brokered CD or other "reasonably safe" product with available funds.
Often "shop" financial products, funds, treasuries, etc, in the name of "keeping up" but never buy without reason and according to my IPS.
Rarely do projections and scenarios on fund and allocation strategies because I know I'll find that things are already "pretty good" and that's good enough.

You can "play" with new cash as it arrives as long as it fits long term strategy and does not throw things off. Depending on your changes to your finances, income stream, job changes, etc, you can tweak to your hearts content within a certain sensible well calculated margin. IE: When a CD matures. Spend time researching and "shopping" for alternatives, etc.

So there is a way to "keep busy" by pursuing a deeper financial education, and so forth.

Why not be more active on the forum. It makes a great financial "scratching post". :shock:

j :happy

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Re: How do you handle the urge to DO something?

Post by MJW » Wed Jul 18, 2018 11:02 am

blackfish wrote:
Wed Jul 18, 2018 9:05 am
I probably have too many hobbies, this is just a new one for me. I will focus my desire to do something into continuing educating myself, and if that doesn't quite scratch the itch, I will see what I can do to continue increasing my sources of income to increase the amount I am able to invest.
I view learning about investing as a hobby and the actual act of investing as a means to an end. Whenever I get the "itch" to do something related to investing, I spend that time reading and studying. If I come across something that I believe I may want to implement, I file it away in the "to be revisited later" category. That almost always results in no future action taken.

I think the challenge for some personality types, mine included, is that when we take something on we tend to go after it full bore. We study it to death, over-analyze our options and figure out how to "maximize" what we get from it. In my own experience that has resulted in wasted time and money when I would have been just as good or better off accepting "good enough." Fortunately, when it comes to investing I've mostly just wasted time. :P

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Re: How do you handle the urge to DO something?

Post by CFR » Wed Jul 18, 2018 11:04 am

livesoft wrote:
Wed Jul 18, 2018 7:37 am
I go off the grid and backpack in the wilderness for days at a time. When I come back, I discover that nothing has happened.
+1000

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Re: How do you handle the urge to DO something?

Post by bondsr4me » Wed Jul 18, 2018 11:10 am

Jack FFR1846 wrote:
Wed Jul 18, 2018 8:50 am
Resist the urge? What urge? It ain't my birthday, so it's not time to rebalance. What is this thing that you're afraid of doing? Maybe you need a hobby.
That's a great idea....rebalancing on your birthday!

Mine's coming up so maybe I'll just start that as a habit!

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Re: How do you handle the urge to DO something?

Post by 2015 » Wed Jul 18, 2018 11:20 am

Read non-fiction business books widely outside the fields of investing, personal finance, and economics. Read deeply in the areas of behavioral finance and human decision-making. You will learn the emotional side of investing is far more important than the technical aspect. You will also learn not only how to be much more effective in your economic life, but in the rest of your life as well.

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Re: How do you handle the urge to DO something?

Post by jacoavlu » Wed Jul 18, 2018 11:23 am

you can take some of your emergency fund or savings or cash for near term use or even some bond allocation and get into buying and rolling new issue short term treasuries.

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Re: How do you handle the urge to DO something?

Post by M_to_the_G » Wed Jul 18, 2018 12:03 pm

Read Bill Bernstein's "If You Can" (as well as all seven books in the accompanying reading list), and I guarantee that you will not ask this question ever again. Whenever someone comes on here to discuss the urge to "do something," I am convinced it is because they have started on the Boglehead path without also becoming fully literate in personal finance, investing, and market history. I guess it's better to blindly follow Boglehead investing rather than blindly hire an advisor, for example, but only a little better. It's good to accept that the Boglehead theory sounds good. It's better to understand it.

As Bill Bernstein says in "If You Can", "Finance isn't rocket science, but you'd better understand it clearly."
"It’s basically the plot of 'Charlie and the Chocolate Factory.' If you stick around, doing nothing, while everyone around you ****s up, you’re going to win big." - John Oliver

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Re: How do you handle the urge to DO something?

Post by Grt2bOutdoors » Wed Jul 18, 2018 12:20 pm

When you have an urge to tinker, wait three months, then re-visit it. In the meantime, go for a LONG walk and plan your next date, vacation instead.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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Re: How do you handle the urge to DO something?

Post by steve roy » Wed Jul 18, 2018 12:40 pm

I’m good at being oblivious. (Just ask Mrs. Steve Roy).

We really haven’t changed anything (much) since the Fall of 2008, when we sold Goldman Sachs equities for then-obvious reasons. I sold our Vanguard S&P 500 index in 2003, something I regret to this day.

Best evidence for “doing nothing”? I’ve had money in a Vanguard-administrated 401(k) Plan for years. Six years back, when Vanguard took over administration, they moved ALL 2600 participants into an age-appropriate Target Date fund, no matter what funds people had previously been invested in. I kept meaning to move out of the TD Fund (institutional cost: 8 basis points) but never got around to it. The fund has done very well, better than my smorgasbord of individual Vanguard funds.

Being inert turns out to be its own reward.

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Re: How do you handle the urge to DO something?

Post by blackcat allie » Wed Jul 18, 2018 1:42 pm

I am struggling with this as well, “Don’t do something, just stand there! “ - however I am still fairly new, and learning all the time (thanks to this board). I’m wrestling with asset allocation across a few account types - and think some modifications would be good. (Disclosure- I will admit some of these concerns are due to international allocations/ trade war/ headlines risk.)

It’s just what everyone said about overhandling portfolio: Even if it's guided by better knowledge, I will zig when I should zag - and make my small portfolio even smaller.
Last edited by blackcat allie on Wed Jul 18, 2018 1:58 pm, edited 2 times in total.

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Re: How do you handle the urge to DO something?

Post by pkcrafter » Wed Jul 18, 2018 1:42 pm

blackfish wrote:
Wed Jul 18, 2018 7:17 am
The Boglehead philosophy is to decide on your long term investment strategy, allocate your assets accordingly and then do nothing outside of an annual rebalance for the next 20/30/40/50+ years. That is difficult for me because I am a doer, I have to struggle daily to just leave it. My brain knows it is the right thing to do, but my personality feels like I should be more active.

How do you handle the urge to constantly tweak things? To those of you who have a similar disposition as me, do you find this to be a struggle? I am a relative new BH, does it get easier with time? Does anyone allocate a certain amount of their capital to a "play" account to scratch this itch?
Sure it's a struggle, and to some more than others, but remember, it's a behavioral/ego thing. Why do you want to be active? I would have to guess it's only because you think you can increase your returns where others cannot. I don't think it actually comes down to trying to increase returns, it comes down to proving you are smarter and wiser than the average investor. Now that I've said that, I'll also say the smartest investors do not slip down the return chart by playing around. They do what John Bogle and Taylor Larimore have been saying for decades--buy and hold / Don't do something, stand there! / Stop thinking you're smart and be smart.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

Texanbybirth
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Re: How do you handle the urge to DO something?

Post by Texanbybirth » Wed Jul 18, 2018 1:53 pm

So set aside a little bit of play money and see how you do? Or get a hobby that doesn't involve easy access to your online account (read: a computer)?

I don't seem to share your extreme "do-er" personality, but regardless I have plenty of other pursuits that keep me from tinkering. I also have a Vanguard Target Date Retirement Fund. It has saved me from pointless tinkering a number of times, mainly because I can't do anything but put money into it. And I avoid that temptation by opening my bank website and seeing I don't have any money TO put into it. :beer

Afty
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Re: How do you handle the urge to DO something?

Post by Afty » Wed Jul 18, 2018 2:01 pm

Can you channel your energy into other things? Your kids, a hobby, your work, a personal project, etc.?

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M_to_the_G
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Re: How do you handle the urge to DO something?

Post by M_to_the_G » Wed Jul 18, 2018 2:05 pm

"Benign neglect, bordering on sloth, remains the hallmark of our investment process." - Warren Buffett
"It’s basically the plot of 'Charlie and the Chocolate Factory.' If you stick around, doing nothing, while everyone around you ****s up, you’re going to win big." - John Oliver

FOGU
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Re: How do you handle the urge to DO something?

Post by FOGU » Wed Jul 18, 2018 2:05 pm

So you subscribe to the school of thought, "Don't just sit there. Do something."

Try the following: "Don't just do something. Sit there."

Get over it.
~ Don't just do something. Sit there. ~

nimo956
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Re: How do you handle the urge to DO something?

Post by nimo956 » Wed Jul 18, 2018 2:12 pm

Growing your net worth happens slowly over time. You might check your balances/performance frequently in the early years, but over time it will just get boring and you'll move on to other interests.
50% VTI / 50% VXUS

grettman
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Re: How do you handle the urge to DO something?

Post by grettman » Wed Jul 18, 2018 2:24 pm

blackfish wrote:
Wed Jul 18, 2018 7:17 am
The Boglehead philosophy is to decide on your long term investment strategy, allocate your assets accordingly and then do nothing outside of an annual rebalance for the next 20/30/40/50+ years. That is difficult for me because I am a doer, I have to struggle daily to just leave it. My brain knows it is the right thing to do, but my personality feels like I should be more active.

How do you handle the urge to constantly tweak things? To those of you who have a similar disposition as me, do you find this to be a struggle? I am a relative new BH, does it get easier with time? Does anyone allocate a certain amount of their capital to a "play" account to scratch this itch?
I am doer too. I am always tinkering around the house. Doing stuff. I need to always be on the move.

I realized long ago that I can't out smart the market. I put a plan in place to buy every single payday when I buy the S&P 500 (TSP C) fund and VTI (US Market). I sock away the rest in CDs. I don't know enough to do anything different. I recognize that I do not have a crystal ball and what I am doing is the best I am capable of. I also believe that waiting (and not tweaking) IS IN FACT doing something. I am waiting....I am overseeing my plan .... I make sure the purchases are done in accordance with my plan. Doing something doesn't have to be any more than that.

GoldenFinch
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Re: How do you handle the urge to DO something?

Post by GoldenFinch » Wed Jul 18, 2018 3:36 pm

I do one and a half to two hours of cardio stuff at the gym every morning and that uses up 85% of my energy for the day. I spend the rest of the day trying to stay awake and get everything else I have to do done. I do pay attention to the stock market, but since all of our investments are on autopilot I don’t have to do anything with the money. :happy If I want to look at accounts, that’s fine. If I DO feel I want to DO something involving money I read Bogleheads instead. I always learn something new and get a few laughs out of some of the posts.

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