How do you handle the urge to DO something?

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

Post by aqan »

Never really had such urge but I have recently setup an account with some play money where I invest in companies/technology I really believe in (cloud, electric car, social media etc)

So far the results have been mixed, so there goes the urge ;)
drdrgolf
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Re: How do you handle the urge to DO something?

Post by drdrgolf »

Play golf, often!!
Amazing how much time it consumes and if you are competitive it takes up a lot of time, and perhaps some do-re-mi. :moneybag
Hopelessly engaged but leaving my portfolio unchanged.

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

Post by midareff »

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?
Go for a slice of pizza and a brew.

I have a play money account and play there. Retired 7 years and don't mess with the real stuff.
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Rowan Oak
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Re: How do you handle the urge to DO something?

Post by Rowan Oak »

bump.
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7eight9
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Re: How do you handle the urge to DO something?

Post by 7eight9 »

By taking Nike's advice.
I guess it all could be much worse. | They could be warming up my hearse.
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Stinky
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Re: How do you handle the urge to DO something?

Post by Stinky »

By reading this Forum. Hours of entertainment, and often learn something new.

Just stay away from the “soaring” and “free fall” threads. :happy
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dodecahedron
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Re: How do you handle the urge to DO something?

Post by dodecahedron »

Reading Jason Zweig´s article in today´s WSJ can be reinforcing:

¨The Pros Have to Sell Stocks Now. You Don´t¨

Jason writes:
Patience is a luxury that individual investors can afford. Money managers must focus not only on analyzing what assets are worth, but also on “anticipating what average opinion expects the average opinion to be,” as John Maynard Keynes wrote in 1936.

That’s because the pros are in a never-ending struggle to attract new funds. For professionals seeking to maximize their fees, it’s rational—at least in the short run—to buy even more of the most-overvalued stocks when their prices are rising.
Grateful I am not a money manager (with high stakes in a very competitive cut-throat industry) and have the luxury to be patient.
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1789
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Re: How do you handle the urge to DO something?

Post by 1789 »

IMHO, the people who doesn't have that tendency are the ones

1) who don't know enough about markets and investing but put money in sp500 OR the ones
2) who knows, reads and understand how markets work.

I heard both groups are financially successful.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)
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abuss368
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Re: How do you handle the urge to DO something?

Post by abuss368 »

1789 wrote: Wed Feb 26, 2020 12:13 pm IMHO, the people who doesn't have that tendency are the ones

1) who don't know enough about markets and investing but put money in sp500 OR the ones
2) who knows, reads and understand how markets work.

I heard both groups are financially successful.
Reminds me of my spouse. Does not follow the markets but is frugal and savings and invests with the Two Fund Portfolio of Total Stock and Total Bond. Over time that is probably the best investor.
John C. Bogle: “Simplicity is the master key to financial success."
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1789
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Re: How do you handle the urge to DO something?

Post by 1789 »

abuss368 wrote: Wed Feb 26, 2020 12:17 pm
1789 wrote: Wed Feb 26, 2020 12:13 pm IMHO, the people who doesn't have that tendency are the ones

1) who don't know enough about markets and investing but put money in sp500 OR the ones
2) who knows, reads and understand how markets work.

I heard both groups are financially successful.
Reminds me of my spouse. Does not follow the markets but is frugal and savings and invests with the Two Fund Portfolio of Total Stock and Total Bond. Over time that is probably the best investor.
Same here for 1) :sharebeer
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)
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Re: How do you handle the urge to DO something?

Post by abuss368 »

1789 wrote: Wed Feb 26, 2020 12:21 pm
abuss368 wrote: Wed Feb 26, 2020 12:17 pm
1789 wrote: Wed Feb 26, 2020 12:13 pm IMHO, the people who doesn't have that tendency are the ones

1) who don't know enough about markets and investing but put money in sp500 OR the ones
2) who knows, reads and understand how markets work.

I heard both groups are financially successful.
Reminds me of my spouse. Does not follow the markets but is frugal and savings and invests with the Two Fund Portfolio of Total Stock and Total Bond. Over time that is probably the best investor.
Same here for 1) :sharebeer
You have a Two Fund Portfolio if I remember correctly right?
John C. Bogle: “Simplicity is the master key to financial success."
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1789
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Re: How do you handle the urge to DO something?

Post by 1789 »

abuss368 wrote: Wed Feb 26, 2020 12:22 pm
1789 wrote: Wed Feb 26, 2020 12:21 pm
abuss368 wrote: Wed Feb 26, 2020 12:17 pm
1789 wrote: Wed Feb 26, 2020 12:13 pm IMHO, the people who doesn't have that tendency are the ones

1) who don't know enough about markets and investing but put money in sp500 OR the ones
2) who knows, reads and understand how markets work.

I heard both groups are financially successful.
Reminds me of my spouse. Does not follow the markets but is frugal and savings and invests with the Two Fund Portfolio of Total Stock and Total Bond. Over time that is probably the best investor.
Same here for 1) :sharebeer
You have a Two Fund Portfolio if I remember correctly right?
Only sp500/us total market and cash in MM. Need to add some bonds at some point, don’t know when haha
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)
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abuss368
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Re: How do you handle the urge to DO something?

Post by abuss368 »

1789 wrote: Wed Feb 26, 2020 12:23 pm Only sp500/us total market and cash in MM. Need to add some bonds at some point, don’t know when haha
Awesome portfolio. A couple of funds and larger more material balances by fund to move the needle.

How has it worked for you? Any regrets with no international or reits or small caps?
John C. Bogle: “Simplicity is the master key to financial success."
Puretaxableindexer
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Re: How do you handle the urge to DO something?

Post by Puretaxableindexer »

Maybe a great balanced index fund like Vanguard LifeStrategy funds may be worth it. Less work, fund and forget. Personally, I run/ride the stationary bike 5 days a week to keep my mind clear of racing thoughts. It really works.
123
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Re: How do you handle the urge to DO something?

Post by 123 »

Have a beer and think about it.

Repeat until the urge passes.
The closest helping hand is at the end of your own arm.
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1789
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Re: How do you handle the urge to DO something?

Post by 1789 »

123 wrote: Wed Feb 26, 2020 12:29 pm Have a beer and think about it.

Repeat until the urge passes.
Excellent advise
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)
JediMisty
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Re: How do you handle the urge to DO something?

Post by JediMisty »

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?
What works for me: I set ALL my dividends in ALL accounts to go into my various settlement funds rather than reinvest. Then, the beginning of each month PLUS the end of each quarter, I direct those dividends within my various accounts according to my AA goals - often to my bond funds, but not always. Also my megacorp 401k has the "MegaDoor Roth" option, I had to make a spreadsheet to front load my 401k due to job instability. Every two weeks (at payday) I enter the recent contributions into my spreadsheet to determine my ongoing contributions. I also must manually convert those after-tax to Roth right away and once converted, then exchange into my S&P 500 fund in my 401k. I also add the 401k and HSA contributions each payday to my spreadsheet that has my YTD calculations that are populated from my spreadsheet of balances - prepared in "GoogleSheets". I also make charts from time to time to amuse myself. For example - percentage of fixed income in taxed deferred or percentage of stocks in taxable. Pie charts are fun! I do some advance planning by running projected numbers through the most current tax software -mentally preparing to tax gain harvest my first full year of retirement. And I regularly check my balances in Googlesheets, but only exchange funds if my AA are outside my pre-set bands. All this keeps me from feeling helpless and reminds me of my AA. At the recent downturn, when my SO was whining about the stock market going down, I just shrugged and said, "If it's outside the AA bands, we'll exchange some fixed income for equities, otherwise do nothing." I also like to run monte Carlo and other software to learn the ramifications of different withdrawal rates, effects of downturns, SS being lowered, taking SS at different times, Roth conversions, etc. Lots of things I can do so that not buying and selling drives me crazy. I admire people who say, "I never look". But I am naturally anxious, so I have to do SOMETHING.
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1789
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Re: How do you handle the urge to DO something?

Post by 1789 »

A hobby like an outdoor sports may help too. I do road biking about 50-60 miles a week, not as much as i would want to. But it helps and it just makes me free from all financial worries. My only worry then becomes couple bad truck drivers who intentionally acts weird.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)
Vanguard Fan 1367
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Re: How do you handle the urge to DO something?

Post by Vanguard Fan 1367 »

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 remember the times when I did something. For me the doing something hasn't worked out. I really appreciate John Bogle's books and recommend that you read at least The Little Book of Common Sense Investing. I tend to not sleep well at night, especially with any stress, and John's books help me sleep.
Upton Sinclair: "It is difficult to get a man to understand something when his salary depends on his not understanding it."
pasadena
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Re: How do you handle the urge to DO something?

Post by pasadena »

* I play with my Excel sheet and projections - knowing exactly where I am and where I'm going helps a lot with the urge to do something
* I invest whatever I have in my settlement fund (latest dividends) - usually only a few $100's and only if I don't already have plans for that money, but hey, it scratches the itch
* Today I rebalanced my 401(k), although I hadn't quite reached my rebalancing band's trigger.

If the urge is to do something more impactful than that, I go and reread my IPS. Usually makes it go away.
rkhusky
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Re: How do you handle the urge to DO something?

Post by rkhusky »

Calculate my AA and rebalance if it is more than 1% off, or if a strong urge to do something, rebalance if AA is off by 0.5%.
rockstar
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Re: How do you handle the urge to DO something?

Post by rockstar »

I have quantitative measures that I track. For example, did the equity drop below the 300 day moving average? This will make me consider a sale, which is happening right now. I haven't done anything yet, but I'm thinking about it.

I also track the S&P 500 pe ttm. I do think that eventually price matters. I have mostly been buying treasury bills and CDs with new money.

Will I sell my holding that fell below the 300 day moving average this week? I haven't decided yet. I'd like it to stay below for a couple of days before pulling the trigger. I like to put a floor on my losses.
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Re: How do you handle the urge to DO something?

Post by ruralavalon »

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 turn off the news, and listen to some music or read a book.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
StealthRabbit
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Re: How do you handle the urge to DO something?

Post by StealthRabbit »

How do you handle the urge to DO something?
i.e. Market urges dispelled by the following.

1) Lap swimming (drown my sorrows, calm my fears) I have been known to swim 300 laps at a session (retired... nothing else to do on a rainy / snowy day)

2) Very fast motorcycle riding... (ex-racer, still have 9 vintage racing motorcycles that need a fresh ride daily)

3) Take a nap...

BTW... I haven't had a TV since 1968, so Fox News is not getting any of my attention.
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midareff
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Re: How do you handle the urge to DO something?

Post by midareff »

We did something yesterday... we went out for Sushi.
LuckBeALady
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Re: How do you handle the urge to DO something?

Post by LuckBeALady »

123 wrote: Wed Feb 26, 2020 12:29 pm Have a beer and think about it.

Repeat until the urge passes.
+1

Also, I come here and read threads. Inspires me to “don’t just do something, stand there”!
Money Market
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Re: How do you handle the urge to DO something?

Post by Money Market »

I read Bogleheads. I understand that investing is supposed to be boring. I will place my money into two funds and just contribute and rebalance until retirement. It's simple, easy, and extremely boring, but I'm confident that in doing this for decades, my portfolio will beat the pants out of most institutional investors and at least 80% of the people who trade/speculate/overtinker their portfolios.

I bought a few shares of a public partnership and a PFIC for entertainment to experience the tax fun next April.
aqan
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Re: How do you handle the urge to DO something?

Post by aqan »

So I had that urge too last year and I moved 20k into a new account and started investing in individual names. At the end of 2019 I was up a meager 12% as opposed to S&P which was up 30%. Granted I was unable to pay too much attention to my stocks and about 50% of my money was not even invested for about half the year. By January my urge had subsided and I liquidated all of my holdings except Tesla. Luckily for me tesla short squeeze happened and by February I was up 40% overall. Just recently I completely went in cash and now started buying into my AA.

Even though I didn’t have a bad outcome (due to sheer luck) but I learned that this urge requires a lot of discipline & time to research about your holdings and the outcome may still not be as good as simple index investing.

Learn for my experience or try yourselves and learn a thing or two. Your choice.
Good luck.
smectym
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Re: How do you handle the urge to DO something?

Post by smectym »

nisiprius wrote: 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.
nisiprius Is probably more disciplined than I am but my approach is similar: when gripped by the urge to either buy or sell based on short-term market moves, I will nip and tuck at the edges of the portfolio. I find that doing a $250 exchange from or to a large mutual fund position has a therapeutic effect. There. I did something. It sounds and it is silly; but it lets me go about the rest of my day
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