Great Goofs

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K72
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Great Goofs

Post by K72 »

It seems to me one of the best ways to gain advice is to hear about other people's financial mistakes. Here are mine:

1. Rec'd an unsolicited hot stock tip from a broker showing the 5-year price history of a particular stock, which looked like a nice sine wave ($2 min and $6 max). The price was currently at a low. Figuring it was a sure bet I bought a few thousand $ worth. Of course it immediately tanked and never recovered. I sold it 3 years later at probably 5% of the original price.

2. Due to a company acquisition I had a choice of taking my accrued pension benefits as a lump sum IRA rollover, which I did. An entrepreneurial "wealth manager" from a well known financial firm offered free lunch at a pizza place across the street for all affected employees. Based on the talk, I went in hook-line-sinker. A couple of years later I liquidated my self directed IRA and taxable accounts (ouch!) at another brokerage firm and moved everything to the same place. I was elated that a very smart person with an army of experts from a prestigious firm had my back and I didn't have to concern myself with the activities. I only gave the statements a cursory glance on occasion. I always enjoyed the annual visits to the handsome wood paneled office on the 15th floor and the corner office of my advisor in his three-piece suit and stunning view. After a while though, I started wondering who paid for the fancy offices and I got increasingly annoyed with vague answers to my questions about costs and elaborate excuses about performance, not to mention the half inch stack of trade confirmations I rec'd each year. Last summer, after 13 years, I finally took the time to compute my return vs risk based on monthly statements. Over the past five years my portfolio had the same risk as Wellington, which was fine, but the return was one third that of Wellington. I almost fainted. Needless to say, I recently fired my advisor (after great anxiety that somehow I was letting him down) and moved everything to Vanguard. He didn't even try to talk me out of the move. I can imagine him thanking me under his breath for paying his salary and for his nice office all of these years. I kick myself every day for my stupidity, especially now that I'm only a couple of months from retiring.
Last edited by K72 on Wed Feb 27, 2019 10:36 pm, edited 4 times in total.
fingoals
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Re: Great Goofs

Post by fingoals »

Thank you for sharing the stories. They both are, indeed, educational. ;-)
123
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Re: Great Goofs

Post by 123 »

In the dotcom bubble I bought some Webvan. As everyone knows it went down the tubes in the dotcom bust.

The shares lingered on my account statement, month after month, year after year. I got annoyed with myself more with the receipt of each statement. I eventually paid the sales commission and had the broker buy it away from me to remove it from my account. I am not irritated to look at my statements any more.
The closest helping hand is at the end of your own arm.
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Quirkz
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Re: Great Goofs

Post by Quirkz »

When my daughter was born I went to set up a 529. I knew enough to check and see what plan was approved by the state, and a Google search told me that Vanguard ran them for Colorado. So I went to the Vanguard site and set up an account and told them I lived in Colorado.

A year and a half later I got a tax bill from Colorado saying I wasn't in an approved plan. I needed to A) go to a different web site, which specializes in 529 plans and is run by Vanguard on the back end, and B) I needed a different state (the Nevada plan, I think?). So I got it all switched over, but not before losing a year and a half of tax deductions to an ineligible plan.
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Fieldsy1024
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Re: Great Goofs

Post by Fieldsy1024 »

Loaning friends (ex friends) money
gmehta
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Re: Great Goofs

Post by gmehta »

1. Not putting money in 401K for first 3 years (leaving money on the table for the match)
2. Not having enough wisdom about investing and starting late in the game at 35 for the simple 3 fund portfolio investment
vu8
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Re: Great Goofs

Post by vu8 »

I made all sorts of mistakes investing before I started to follow the index fund strategy in April 2018. I was buying CLM and CRF, both were yielding 18% annually... When I got my year end tax bill, the vast majority of the dividend income are returns of capital... While the fund managers take 100 basis points a year... I was also buying on margin, leveraging 100% at IB, until losing like 20000 dollars in 3 days during the February 2018 stock market correction. Then I was like, maybe it's not a good idea getting on margin loans, i'll just buy LEVERAGED ETFs! Then I was buying TQQQ... Until April I somehow watched Jack Bogle's interview with Vanguard, realizing how much of a mistake I've been making... Never sold a single share of Vanguard assets since April 2018.
A440
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Re: Great Goofs

Post by A440 »

I was bidding on a laptop on ebay. In my haste, I entered $10,000 instead of $1,000 and (surprise) won the bid. :shock:
Thankfully, the buyer had grace and accepted the $1,000 in lieu of $10,000.
I don't know what the future holds, but I know who holds my future.
elainet7
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Re: Great Goofs

Post by elainet7 »

not doing roth conversions age 60-65
buying variable life insurance
buying a few individual stocks when I was rolling in dough which were losers
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sarabayo
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Re: Great Goofs

Post by sarabayo »

  1. Not understanding the significance of my 401(k) having non-Roth after tax contributions until almost two years after I started working. (The significance, as I found out, is that my 401(k) supports the mega backdoor Roth contribution strategy, which you'd better believe I am now using to the fullest.)
  2. Thinking that taxable accounts were only for "traders" and "investment pros", and therefore limiting my investments to only retirement accounts, again for the first two years I was working. Then I discovered the Bogleheads wiki and was kicking myself for not starting a taxable brokerage account sooner! My cash allocation was way too high for too long.
Independent George
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Re: Great Goofs

Post by Independent George »

Fresh out of school and not knowing anything about investing, I decided to buy a little bit of over a dozen different overlapping mutual funds in my 401(k).

Fortunately, the most expensive of them was something like 1% for an international fund, and the total performance was more or less equivalent to TSM in the 3-ish years before I wised up.

Buying my condo in 2007 obviously cost me the most money, but given how happy I've been living here, I can't really call it a goof despite the financial loss and opportunity costs.
Dottie57
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Re: Great Goofs

Post by Dottie57 »

Biggest goof - believing I needed someone to help me with investing my rollover IRA back in 1997.
Another goof - believing I couldn’t put more than 15% into 401k. Thatwas true of first plan. Not true of megacorp plan.
Should put a little bit into abrokerage account. Even $25 amonth would have been good.
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grabiner
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Re: Great Goofs

Post by grabiner »

I started investing in 1997, and didn't understand the principles of tax-efficient investing. I understood that I should have a US stock fund, a foreign stock fund, and a bond fund. I picked the right US stock fund (Total Stock Market, which I still hold), but I bought an actively-managed foreign stock fund (Vanguard International Growth), and put a high-yielding bond fund (Vanguard Long-Term Corporate, now Long-Term Investment Grade) in my taxable account rather than in my IRA. I fixed this later, after learning about taxes and paying more in tax along the way than I should have.

I converted a big traditional IRA to a Roth IRA in 2007 (and a smaller part of it in 2008, in order to use up a lower tax bracket). In October 2008, with the market down 30% from the peak, I should have recharacterized the conversion, but I didn't know about recharacterizations at the time. Had I recharacterized, and re-converted in 2009, I would have saved several thousand in taxes. (This is no longer allowed.)
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bengal22
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Re: Great Goofs

Post by bengal22 »

When buying first house should have bought more house
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retiringwhen
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Re: Great Goofs

Post by retiringwhen »

I believed the MotleyFool story on Dogs of the Dow and started investing about 10% of our funds in that model, in ..... 1999.

Let's say, it cured me of any idea I had any prowess in stock picking after Kodak rolled over and everything else did terrible. Luckily, it was only a small part of the portfolio.
Teague
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Re: Great Goofs

Post by Teague »

A440 wrote: Wed Feb 27, 2019 5:52 pm I was bidding on a laptop on ebay. In my haste, I entered $10,000 instead of $1,000 and (surprise) won the bid. :shock:
Thankfully, the buyer had grace and accepted the $1,000 in lieu of $10,000.
Online bill pay, phone bill for $28.40. I got distracted by my charming young daughter and put a zero where the decimal point was supposed to go. I didn't notice it. Thankfully I did not have $28,040 in the account or I'd probably still be trying to wrestle it back from the phone company.

Years ago I'd read that dividend stocks were the way to go, so I loaded up on them. In a taxable account. :oops:
Semper Augustus
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Re: Great Goofs

Post by 3-20Characters »

Loaded up on emerging markets and individual tech stocks in the late 90s. It felt like a casino and we were all about to get lucky. :oops: Lesson learned.
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Wiggums
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Re: Great Goofs

Post by Wiggums »

I was day trading and the year was 2000. I would by Nokia stock at the market open and sell it by lunchtime. Every trading day without fail. I had fidelity’s real time trading system on my dial up 28.8 baud modem line. I had margin on my account too that my wife had to co-sign because it was a joint account. In April 2000, Nokia stock split for the third time and it was 4 to 1.
The stock was at an all time high.

I was clueless.

1) I traded in my taxable account. I learned the difference between long and short term capital gains at tax time. I had all STCG of course.

2) I paid $19.95 a trade back then which meant that I had to buy a lot to shares. After subtracting the interest and trading costs, I had lunch money at best.

3) One day, the market took a nose dive after I purchased the stock. So I doubled down and bought more shares. I held the shares overnight on margin. The next day the stock fell even more. I got a margin call Sometime that week.

4) I gave up on Nokia stock and switch to the T Rowe Price media and telecom mutual fund. Didn’t know what an expense ratio was, but hey, not transaction fee!!! I fell in love with that telecom space and proudly wore my Motorola flip phone on my belt. Anyway, I bought $40,000 worth and the price kept falling, day after day. I stopped looking at my account when it lost half it’s value.
28fe6
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Re: Great Goofs

Post by 28fe6 »

Fresh out of school and not knowing anything about investing, I decided to buy a little bit of over a dozen different overlapping mutual funds in my 401(k).

Fortunately, the most expensive of them was something like 1% for an international fund, and the total performance was more or less equivalent to TSM in the 3-ish years before I wised up.
I did the same at my first job. I had skimmed Random Walk Down Wall Street and figured throwing darts was a decent strategy. I bought an equal amount of every fund offered, including equal amounts of every target date fund! Then I forgot about it for 3 years. I didn't rebalance because I didn't know my AA!. It worked out totally fine. AA ended up about 80/20. What make a (negative) difference was only contributing to the match amount, which I wish I could go back and whack myself on the head about. Further proving that savings rate is more important than just about anything else about investing, including expense ratios and asset allocation.
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mhadden1
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Re: Great Goofs

Post by mhadden1 »

In the mid 80s I worked at an engineering company and I thought my employer was a pretty savvy guy. I noticed that he got involved in a publicly traded cable tv construction company so I bought some shares. I told my employer about my buy at the company picnic - he looked worried and said "never invest money you can't afford to lose". His worried look proved prophetic as the stock, after a period of underperformance, finally went to 0 after a bizarre merger with a frozen food company.
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dogagility
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Re: Great Goofs

Post by dogagility »

Fieldsy1024 wrote: Wed Feb 27, 2019 5:20 pm Loaning friends (ex friends) money
+1
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dodecahedron
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Re: Great Goofs

Post by dodecahedron »

bengal22 wrote: Wed Feb 27, 2019 9:37 pm When buying first house should have bought more house
When buying second house, we should have bought LESS house.

Backstory: we sold our first home at a big gain in 1989 and moved to a much lower cost of living area. Under the tax laws at the time, the ¨tax-smart¨ thing to do was to roll the entire proceeds of the sale of our first home into our replacement home purchased within two years of the sale of our first home, which allowed us to defer paying taxes on the capital gain on the old home. To secure that tax advantage, we had to buy a much bigger replacement home in our new LCOL area than we actually needed at the time.

It is a very nice home with lots of wonderful memories, which our whole family loved and which I am now quite emotionally attached to. But I suspect we could have been just as happy with a much more modest home and the operating costs (property taxes, maintenance, insurance) over the years would have been much less.

In retrospect, I often wish we had bought a more modest home and just bit the bullet and paid the taxes on the capital gain at that time. We could have put the operating cost savings into a three-fund portfolio and come out way ahead financially. (This house has had zero nominal appreciation in the past 30 years!) And our carbon footprint could have been much less.

Then again, I do (perhaps irrationally) love this home. And I can afford it. And my late husband loved this place--and living here made him very happy. So I am doing what I can to make this home more sustainable, simpler, and more affordable (e.g., energy efficiency.)

Postscript: then again, if we had just stayed in our former HCOL home, the appreciation on THAT home would have been phenomenal (again, in retrospect.) But the stress of continuing to live there would not have been worth it.
Corgitodd
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Re: Great Goofs

Post by Corgitodd »

A smart person learns from their own mistakes,
A wise person learns from others mistakes.
rholt
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Re: Great Goofs

Post by rholt »

Taking out some student loans and accumulating some credit card debt in graduate school even though I had a tuition waiver and an ok stipend. Luckily, it wasn't a ton of money, but it was no fun starting my career already in the hole.
neilpilot
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Re: Great Goofs

Post by neilpilot »

When purchasing current house, rather than pay cash ($500k) decided to take a $300k mortgage and leave those funds invested. I was 100% allocated in stock. That was 2008, a few months before the market tanked.

Of course that $300k has since recovered, and the mortgage was paid off before I retired in 2015. But if I had simply paid cash for the home in 2008......
robphoto
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Re: Great Goofs

Post by robphoto »

Bought something I didn't understand. I kept hearing that China was a huge growth story, this fund was well-regarded.

Matthews China Fund, 2008; it crashed with everything else, but never fully recovered, and seemed to keep drifting lower, so I sold it for a Total US Market Fund.

Not a huge percentage of portfolio, but definitely a sub-optimal adventure.
retiringwhen
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Re: Great Goofs

Post by retiringwhen »

neilpilot wrote: Thu Feb 28, 2019 9:17 am When purchasing current house, rather than pay cash ($500k) decided to take a $300k mortgage and leave those funds invested. I was 100% allocated in stock. That was 2008, a few months before the market tanked.

Of course that $300k has since recovered, and the mortgage was paid off before I retired in 2015. But if I had simply paid cash for the home in 2008......
Where I live I would have turned out much worse buying the house for cash in 2008. My stocks have averaged well over 8% Annual return since that time, and my house is still nearly 15% below its market value of 2008. I am not sure you made a bad choice, remember the risk/reward choice can only looked at at the time of the choice. Your results will vary based on reality. IOW, I am not sure you made a goof, your logic was sound and is still sound. This BTW, is the core of the risk mantra that Nassim Taleb preaches. Don't confuse outcomes with risk. Risk is the range of possibilities, you only get one outcome. Good outcomes cloud the mind, and sometimes so do bad ones.
neilpilot
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Re: Great Goofs

Post by neilpilot »

retiringwhen wrote: Thu Feb 28, 2019 9:27 am
neilpilot wrote: Thu Feb 28, 2019 9:17 am When purchasing current house, rather than pay cash ($500k) decided to take a $300k mortgage and leave those funds invested. I was 100% allocated in stock. That was 2008, a few months before the market tanked.

Of course that $300k has since recovered, and the mortgage was paid off before I retired in 2015. But if I had simply paid cash for the home in 2008......
Where I live I would have turned out much worse buying the house for cash in 2008. My stocks have averaged well over 8% Annual return since that time, and my house is still nearly 15% below its market value of 2008. I am not sure you made a bad choice, remember the risk/reward choice can only looked at at the time of the choice. Your results will vary based on reality. IOW, I am not sure you made a goof, your logic was sound and is still sound. This BTW, is the core of the risk mantra that Nassim Taleb preaches. Don't confuse outcomes with risk. Risk is the range of possibilities, you only get one outcome. Good outcomes cloud the mind, and sometimes so do bad ones.
Agreed....my best decision was when I left NJ (the 2nd time). Bought a house there when mortgage rate was 17.8% in early 80s. Sold it 3 years later. By that time rate was back down to 8% and home sold for over twice what I paid for it.
Thegame14
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Re: Great Goofs

Post by Thegame14 »

In college took a class on investing, I remember talking after class to another student about Dell and how they were such a great company and they were going to take over from Gateway computers. Some kid sitting on the couch says you should buy Apple, we both laughed and said are they still around?? He said yeah and they are working on new products and turning things around. I looked the stock up and it was $2...This was 1999ish.

Then I worked at Panera bread company around the same time, they just starting building stores in my state, and a customer asked me if the company had stock, I said I don't know let me find out. I looked it up and it also was around $2 at the time and I remember asking my boss if we could buy shares through our paycheck and he said no you just have to buy them on your own... I did NOT buy any....

Then in 2002, I remember talking to a co-worker in my first job about stocks and he liked the Spider and baidu, spider I said seems to high it is about to hit 100, and baidu I said didn't they basically copy google and should get sued for infringment
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Quirkz
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Re: Great Goofs

Post by Quirkz »

Thegame14 wrote: Thu Feb 28, 2019 10:00 am Some kid sitting on the couch says you should buy Apple, we both laughed and said are they still around?? He said yeah and they are working on new products and turning things around. I looked the stock up and it was $2...This was 1999ish.
In late 1999 the company I worked for did a one-off profit share. They put $5,000 in a pre-tax investment account for me. I was a huge Apple fan at the time and my gut instinct was to just buy Apple. But I did my research and diligently selected a collection of mutual funds that proceeded to tank in the market crash soon after. It's hard to call it a goof because it was the right thing to do, and it's hard to know if I would have sat on the stock long enough for it to really grow, but I still kick myself sometimes.
2015
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Re: Great Goofs

Post by 2015 »

Not learning at a much earlier age that risk mitigation, scenario planning, and margins of error are far far more important actions in all areas of life than reaching or yield or performance. In complex adaptive systems such as investing, personal finance, microeconomics and human beings, the practices of inversion and subtractive thinking are invaluable.
BanditKing
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Re: Great Goofs

Post by BanditKing »

Crypto
deskjockey
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Re: Great Goofs

Post by deskjockey »

I was an avid reader of SmartMoney back in the early 2000s and bought several funds based on their recommendations. None of them panned out long-term. I put $8,000 into Fairholme fund over the years starting in 2006 based on their glowing cover article about its fund manager. I finally sold it after years of under-performance and high fees. The straw that broke the camel's back for me was when the fund declared a massive capital gains distribution in 2015 that amounted to more than 40 percent of the value of the fund. I had this fund in my taxable account, so that really burned me. I also bought T. Rowe Price New Era, a high ER energy sector fund that went on to under-perform the market. I got rid of it in 2015, too.
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AllieTB1323
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Re: Great Goofs

Post by AllieTB1323 »

Listening to a FA back in 1999.
Minty
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Re: Great Goofs

Post by Minty »

1. Purchasing annual renewable term instead of level term life insurance. It is very expensive 20 years in.
2. Chasing hot mutual funds in early years of work (but at least I got the money invested, so I didn't get hurt too badly).
3. The one driving me crazy at the moment is that I forgot a $20 off coupon when I last went to my favorite neighborhood restaurant.
4. Using a not great home inspector.
Core Four w/ nominal bonds & TIPS. Refi Rampage: Purchase: 4.125% 30 -> R1 3% 20 -> R2 2.375% 15 -> R3 locked 1.99% 15
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FelixTheCat
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Re: Great Goofs

Post by FelixTheCat »

Told a friend I paid off my house. For the next three years he constantly told me how I should spend my money on things he wanted.
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catdude
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Re: Great Goofs

Post by catdude »

Not saving and investing in my 20's and early 30's

Loaning money to people who turned out to be deadbeats and dirtbags

When I did start investing, I chased performance, i.e., hot mutual funds

Always bought new cars (and went into debt to buy them) rather than paying cash for used cars

:oops: :oops: :oops:
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jb1
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Re: Great Goofs

Post by jb1 »

catdude wrote: Thu Feb 28, 2019 3:56 pm Not saving and investing in my 20's and early 30's

Loaning money to people who turned out to be deadbeats and dirtbags

When I did start investing, I chased performance, i.e., hot mutual funds

Always bought new cars (and went into debt to buy them) rather than paying cash for used cars

:oops: :oops: :oops:
How are you doing now out of curiosity?

Sometimes I feel like I am not living to be honest. I have ~95k in Vanguard broken up between Total US Market, Total Int Market, and some stocks. I am age 28, own a house in which I have roommates paying me rent monthly covering the mortgage. I live a very frugal lifestyle, put money weekly into the market and hope to have another house soon.

Big part of this is I am single so I am probably saving a ton of money there compared to my peers.
gliderpilot567
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Re: Great Goofs

Post by gliderpilot567 »

Wasted all my money in my early 20s instead of investing . And 2008 was only two years into my working career, which makes this lost opportunity sting all the more. I can only catch up now via savings rate.
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GerryL
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Re: Great Goofs

Post by GerryL »

I was in my 40s when I finally landed a job at Megacorp. As soon as possible I started buying company shares in the ESPP with the intention of holding for the long haul. I didn't know much (anything?) about investing, but I knew the phrase "buy and hold." Didn't understand why so many of my colleagues would use the program to buy stock at 15% discount and then immediately sell.

Seven years in I had a nice stash and the stock was up to $80/sh, even after several splits. Still I held on. I was busy and really had no idea how to sell the stock. I only knew about obtaining shares but not about trading.

Then in 2000 the price started to fall. And continued to fall even below $20. And it stayed down for a long time. It has never gotten back to $80, but in recent years we've seen it in the high $40s and low $50s. But during those low years I continued buying and adding options and RSUs, so I got some bargains. I figured out how to do limit orders and did a little tax loss harvesting. I also used the dividends for income in pre-SS retirement.

It wasn't a lethal goof, but I occasionally wonder what if I had sold some of those shares at $80 and invested the $$$ in my Balanced Index fund. (Note, I never did a DRIP on the stock. Once my quarterly earnings got up above the cost of a fancy cup of coffee I began reinvesting them in the index fund.)
rage_phish
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Re: Great Goofs

Post by rage_phish »

was out partying with a friend years ago
he starts going on and on about something called bitcoin. he was putting basically everything he had in it at the time
sounded like cartoon money to me
he has done very well since that conversation lol
welsie
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Re: Great Goofs

Post by welsie »

Not mine, but an acquaintance of my father approached him about investing and becoming co-owner of a comic book he was creating in the early 1980s. It involved mutant amphibians fighting crime and was looking for a few thousand dollars. As any sane person would do, my father passed on the it, but as a result he missed an opportunity to be a co-owner of the Teenage Mutant Ninja Turtles.

While I don't invest in moonshots, they do occasionally pay out...
LiterallyIronic
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Re: Great Goofs

Post by LiterallyIronic »

I chose the wrong major. Started school in 2001, studying Computer Science. Tried that for about a year and a half. Couldn't hack it. Took a little time off to work and figure out what I wanted to do. Started back at school, this time studying Information Technology. One semester later, knew that wasn't for me. Took general classes. Decided to study Business Management. Made it through. Finally graduated in December 2008. Terrible time to graduate.

Couldn't find a job related to what I had studied. Took a job in a call center. Was earning a pittance during the ensuring stock market run-up, so I didn't have any money to invest. Went back to school in 2013 and graduated cum laude in Computer Science in December 2016. My first CS class was in 2001 and my last in 2016. I imagine that of all the college students working toward a degree on 9/11/2001, I was the last one to earn that degree, as the rest would've either already earned that degree, earned a different degree instead, or dropped out.

If I had managed to stick with CS right out of the gate in 2001, I would've graduated some time prior to 2008 and theoretically gotten a higher paying job before the stock market crash and would've been able to invest money during the run-up. If I was investing $20k per year starting in, say, 2006, instead of 2016, I imagine I would have about half a million more than I do now.
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catdude
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Re: Great Goofs

Post by catdude »

jb1 wrote: Thu Feb 28, 2019 4:16 pm
catdude wrote: Thu Feb 28, 2019 3:56 pm Not saving and investing in my 20's and early 30's

Loaning money to people who turned out to be deadbeats and dirtbags

When I did start investing, I chased performance, i.e., hot mutual funds

Always bought new cars (and went into debt to buy them) rather than paying cash for used cars

:oops: :oops: :oops:
How are you doing now out of curiosity?

Sometimes I feel like I am not living to be honest. I have ~95k in Vanguard broken up between Total US Market, Total Int Market, and some stocks. I am age 28, own a house in which I have roommates paying me rent monthly covering the mortgage. I live a very frugal lifestyle, put money weekly into the market and hope to have another house soon.

Big part of this is I am single so I am probably saving a ton of money there compared to my peers.
I'm doing fine now. I retired 8 years ago at age 55. I saved like mad from age 40 on... I'm very lucky to have a pension, and health insurance provided by my ex-employer. All of that allowed me to retire young.

Yes, you're doing great, much better than your peers. Keep doing what you're doing and you'll be able to write your own ticket later on in life...
catdude | | "I yield to the gentleman for a few feeble remarks." (Congressman Thaddeus Stevens)
miket29
Posts: 184
Joined: Tue Jun 20, 2017 9:07 pm

Re: Great Goofs

Post by miket29 »

GerryL wrote: Thu Feb 28, 2019 4:44 pm I was in my 40s when I finally landed a job at Megacorp. Seven years in I had a nice stash and the stock was up to $80/sh, even after several splits.
Megacorp wasn't a company selling routers and switches was it? If so, worked there for a few years. The flip side of what you did were all the engineers driving what they called $250K Hondas because they were getting stock options and they knew the market was over-valued so as soon as they vested they immediately sold. Only to watch the stock climb some more. Since these were costless exercises if they had just sat on the options for a while they would have had tons more.
JBTX
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Joined: Wed Jul 26, 2017 12:46 pm

Re: Great Goofs

Post by JBTX »

- $20k invested in Heartland short term high yield municipal bond fund, because it's yields were 2-3% higher than money markets. It's municipal, and short term, so it's gotta be pretty safe, amiright? SEC forced them to revalue portfolio at market value, which caused a loss of about 75%.

- relatively modest investments in gold and silver etfs. Currently well below what I paid for them.

- being very underweighted in conventional bonds in 2008.
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GerryL
Posts: 2868
Joined: Fri Sep 20, 2013 11:40 pm

Re: Great Goofs

Post by GerryL »

miket29 wrote: Thu Feb 28, 2019 11:37 pm
GerryL wrote: Thu Feb 28, 2019 4:44 pm I was in my 40s when I finally landed a job at Megacorp. Seven years in I had a nice stash and the stock was up to $80/sh, even after several splits.
Megacorp wasn't a company selling routers and switches was it? If so, worked there for a few years. The flip side of what you did were all the engineers driving what they called $250K Hondas because they were getting stock options and they knew the market was over-valued so as soon as they vested they immediately sold. Only to watch the stock climb some more. Since these were costless exercises if they had just sat on the options for a while they would have had tons more.
No. Not routers and switches.
After a number of years many of the options were so far under water that they came up with a scheme to let us trade batches of options for repriced options. And they did away with options for most of the employees and switched to RSUs.
jand87
Posts: 39
Joined: Sun Oct 28, 2018 12:14 pm

Re: Great Goofs

Post by jand87 »

Have made numerous financial mistakes from buying an expensive vehicle to not saving enough and many in between but I’ve always tried to get better. My biggest weakness is emotional behavior and impulsiveness. I am working really hard on that. I find the simpler I make my investments (such as a 3 fund portfolio) the more relaxed I become.
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