Your most difficult and your most euphoric investing moments

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Caduceus
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Your most difficult and your most euphoric investing moments

Post by Caduceus » Fri Nov 15, 2019 9:22 am

I've been on the board several years now and I don't think I've seen a thread to this effect.

I am curious:

A) What was your most difficult investing moment for you, psychologically? And how did you respond to it? Was it watching your accounts go down by half in the Great Recession? Or something else?

B) What was your most euphoric investing moment? I am sure most people have gone through periods where their stocks are increasing daily by leaps and bounds. Was that also difficult for you, psychologically?

Thegame14
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Re: Your most difficult and your most euphoric investing moments

Post by Thegame14 » Fri Nov 15, 2019 9:25 am

Watching Wamu go from a $40 stock to basically worthless, selling shares of Apple at $125 which I bought at $90, to pay for grad school classes because I didn't want to take out loans....

bei22000
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Re: Your most difficult and your most euphoric investing moments

Post by bei22000 » Fri Nov 15, 2019 9:29 am

My most difficult time is now where the market is high to the point I don't know if I should continue on investing in Total Stock Market Funds or go more conservative. :o That is why I come here a lot to find some support/help so I can control my emotion and stay the course.

Dottie57
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Re: Your most difficult and your most euphoric investing moments

Post by Dottie57 » Fri Nov 15, 2019 9:38 am

bei22000 wrote:
Fri Nov 15, 2019 9:29 am
My most difficult time is now where the market is high to the point I don't know if I should continue on investing in Total Stock Market Funds or go more conservative. :o That is why I come here a lot to find some support/help so I can control my emotion and stay the course.
Stop looking at account balances and stop paying attention to the financial “news”.

When I start investing I received 2 statements for my 401k. No internet access until 2008.

Dottie57
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Re: Your most difficult and your most euphoric investing moments

Post by Dottie57 » Fri Nov 15, 2019 9:42 am

Most difficult time was during 2008 . My portfolio was almost halved. I saw my retirement date moving way out.

Most euphoric moment was when all investment accounts added up to over 1m. Couldn’t believe it.

bei22000
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Re: Your most difficult and your most euphoric investing moments

Post by bei22000 » Fri Nov 15, 2019 9:46 am

Dottie57 wrote:
Fri Nov 15, 2019 9:42 am
Most difficult time was during 2008 . My portfolio was almost halved. I saw my retirement date moving way out.

Most euphoric moment was when all investment accounts added up to over 1m. Couldn’t believe it.
thank you for your tips. Cheers for your milestone reaching 1m :beer by the way, what is your retirement goal? is 2m a good target?

HomeStretch
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Re: Your most difficult and your most euphoric investing moments

Post by HomeStretch » Fri Nov 15, 2019 9:48 am

Most difficult moment was aligning spouse and my investing philosophies. Up until the last recession, we were raising a family, both working, LBOM and contributing at a high rate to retirement accounts (without any thought to asset allocation) with everything else, aside from a few employer stocks, going into bank CDs. As our portfolio decreased during the recession, I began to pay more attention to developing an asset allocation, improving tax efficiency, using Roth and lowering investing costs. Spouse was very reluctant to give up overly large cash security blanket.

Most euphoric moment (state?) as we get close to retirement is achieving an improved joint investing strategy that we are both comfortable with. Our financial picture has improved considerably as a result of the bull market and being better positioned. It’s great to go into retirement feeling comfortable with portfolio. Still getting used to the concept of decumulating.

Dottie57
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Re: Your most difficult and your most euphoric investing moments

Post by Dottie57 » Fri Nov 15, 2019 10:20 am

bei22000 wrote:
Fri Nov 15, 2019 9:46 am
Dottie57 wrote:
Fri Nov 15, 2019 9:42 am
Most difficult time was during 2008 . My portfolio was almost halved. I saw my retirement date moving way out.

Most euphoric moment was when all investment accounts added up to over 1m. Couldn’t believe it.
thank you for your tips. Cheers for your milestone reaching 1m :beer by the way, what is your retirement goal? is 2m a good target?
I met my retirement goal last year. Happily retired now.

Faith20879
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Re: Your most difficult and your most euphoric investing moments

Post by Faith20879 » Fri Nov 15, 2019 10:43 am

Caduceus wrote:
Fri Nov 15, 2019 9:22 am
A) the most difficult investing moment
Can't think of any, really. Sold some depreciated no-longer-hot stocks/MFs with a heartache during the pre-Boglehead era. Other than that, we are basically the "save x% every paycheck to index funds " kind of investors. Boring to say the least.
Caduceus wrote:
Fri Nov 15, 2019 9:22 am
B) the most euphoric investing moment?
We adhere to the teachings of "peek only if need to". I know our numbers but never thought FIRE would have anything to do with us. Our plan has always been that we would get serious when we reach 63 or 64 - since 65 seems to be the golden standard. In/around 2017, it for no special reason hit me. We could have FIRE'ed using the conservative numbers discussed here at the BHs. That was the real euphoric moment.

Rosencrantz1
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Re: Your most difficult and your most euphoric investing moments

Post by Rosencrantz1 » Fri Nov 15, 2019 11:21 am

Had to think about this for a moment... There's been several "difficult" and "euphoric" investing moments for me, but, I can think of a pair of these moments involving the same stock. Waaay back - in the early eighties - I had bought some "penny" stocks :shock: from a broker that was also the underwriter for the stocks. The company was "Robot Defense Systems". I locked in a 3000 shares @0.50 cnts/share before it went public (back when $1500 dollars was a LOT of money to me).... the day it opened on the market it went to $1.25/ share.... before the end of the 90 day "quiet period", it was $2.25/ share (euphoria). I rode that nag into the ground while it proceeded to go to ZERO (difficult - never actually sold ANY of my shares). Of course, this ended up being one of those valuable life lessons for me.

More recently, about 6 years ago, our combined investment accounts crossed the 1 MIL mark and I remember being pretty happy about that - and, hoping the account stayed north of 1 MIL (so far, it has).

123
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Re: Your most difficult and your most euphoric investing moments

Post by 123 » Fri Nov 15, 2019 12:08 pm

The most difficult investing moment for me was when I decided to take a significant early withdrawal penalty on a large CD in an IRA. I had moved a significant money out of a brokerage account for the sake of getting a much higher yield on a 5 year IRA CD at a bank. After a few months I regretted my efforts because i realized that the extra CD accounts were an annoyance and would cause confusion and complications if I wasn't around at the time they matured (since my spouse has no interest in financial matters). I was greatly relieved after the CD was closed and the funds returned to my single consolidated IRA account.

My most euphoric moments were when I bought shares of Texas Oil and Gas as my first security in the late 1970's with very good results. I was just out of college and an uncle recommended it. Partly due to the gas shortages it just kept going up and up with dividends and stock splits along the way. After a few years it was bought out by another company and I sold it because it became lackluster. I did a couple of other individual stock picks, held them for a few years before selling them again because they were lackluster.

My most satisfying investment moments were when I decided to invest in an S&P 500 index fund back in the 80's. I realized I could be satisfied with market returns instead of chasing past performance in other funds.
The closest helping hand is at the end of your own arm.

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Re: Your most difficult and your most euphoric investing moments

Post by Fallible » Fri Nov 15, 2019 12:44 pm

Caduceus wrote:
Fri Nov 15, 2019 9:22 am
I've been on the board several years now and I don't think I've seen a thread to this effect.

I am curious:

A) What was your most difficult investing moment for you, psychologically? And how did you respond to it? Was it watching your accounts go down by half in the Great Recession? Or something else?

B) What was your most euphoric investing moment? I am sure most people have gone through periods where their stocks are increasing daily by leaps and bounds. Was that also difficult for you, psychologically?
If I’d had a euphoric moment in my 30-plus years of investing, especially if it came after a stock increase, I would consider it my most difficult moment because it is emotion almost to the extreme and I’d then have to get that back under control. I don’t recall such euphoria, but my most difficult moment was the ’08 financial crisis.
John Bogle on his often bumpy road to low-cost indexing: "When a door closes, if you look long enough and hard enough, if you're strong enough, you'll find a window that opens."

carmonkie
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Re: Your most difficult and your most euphoric investing moments

Post by carmonkie » Fri Nov 15, 2019 1:13 pm

Most difficult. Filling for personal BK, followed by divorce and parting 50% of my 401(k).
Most Euphoric, getting out of BK and now being able to max out 401(k), HSA, and have 0 consumer debt.

deltaneutral83
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Re: Your most difficult and your most euphoric investing moments

Post by deltaneutral83 » Fri Nov 15, 2019 1:43 pm

Caduceus wrote:
Fri Nov 15, 2019 9:22 am
I've been on the board several years now and I don't think I've seen a thread to this effect.

I am curious:

A) What was your most difficult investing moment for you, psychologically? And how did you respond to it? Was it watching your accounts go down by half in the Great Recession? Or something else?
A lot of BH at one point in their lives bought single stocks and learned those positions can go down a lot more than half.

ColoradoRick
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Re: Your most difficult and your most euphoric investing moments

Post by ColoradoRick » Fri Nov 15, 2019 3:05 pm

Most difficult was watching net worth decrease by 43% in 2009 and convincing my BW we should not sell. Fortunately she trusted me and we all know it came back pretty quickly. PHEW!

Most euphoric was that while we were saving during my career (70s to 2012) we spent what was left after saving and my BW felt she had to be the money police with the kids and herself (seldom bought a new coat; kids tuition in grade school etc.) You didn't have the internet to disperse financial data like now. Around 2012 she called saying there was a bit on the news about the average 401K balance. She said, wow, ours is a lot more than that! She saw what the sacrifice was for and sees us in our golden years so much more fortunate than our friends. Its hard when you are in your 40s and you've just started to reach critical mass. It seems like you've scrimped and saved for 20 years and don't have much to show for it. Really satisfying when it works. Lots of recessions and tight times back then. Never had 10 years straight of prosperity like now. Always seemed to have an 18 month recession every 3 to 5 years that would take the market down 10-20%.

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Re: Your most difficult and your most euphoric investing moments

Post by DesertDiva » Fri Nov 15, 2019 8:55 pm

Most difficult moment was 20 years ago - when I split from my first husband and lost a third of my 401(k) to him. He refused to participate in his employer’s plan and frequently criticized me for investing. He wanted half but the judge determined that I was entitled to the larger share of my retirement due to circumstances surrounding the divorce.

Most euphoric moment - when I looked at my retirement accounts a few years ago and realized that in spite of the loss and other setbacks, I had more than 15 times what I had after the QDRO was executed.

JediMisty
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Re: Your most difficult and your most euphoric investing moments

Post by JediMisty » Fri Nov 15, 2019 9:10 pm

bei22000 wrote:
Fri Nov 15, 2019 9:46 am
Dottie57 wrote:
Fri Nov 15, 2019 9:42 am
Most difficult time was during 2008 . My portfolio was almost halved. I saw my retirement date moving way out.

Most euphoric moment was when all investment accounts added up to over 1m. Couldn’t believe it.
thank you for your tips. Cheers for your milestone reaching 1m :beer by the way, what is your retirement goal? is 2m a good target?
+1. Couldn't even open my statements in 2008. Didn't sell, but didn't contribute to my Roth for two yerars. Stayed the course on 401k contributions though . 1M was great, although 2M was really great, too just a few weeks ago! Expect to retire from one to three years from now.

averagedude
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Re: Your most difficult and your most euphoric investing moments

Post by averagedude » Fri Nov 15, 2019 9:23 pm

Most difficult: In my early 20's, having over 50% of my net worth in company stock, and seeing the stock tank. I went into hold and hope mode and didn't sell for over 20 years. I made a profit but it vastly underperformed the 500 index.
Most euphoric. The 2000 and 2008 stock market crashes. I was able to dollar cost average into the stock market at cheaper prices. I must confess, at my age I won't be euphoric the next time the market crashes.

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LilyFleur
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Re: Your most difficult and your most euphoric investing moments

Post by LilyFleur » Sat Nov 16, 2019 2:19 am

most euphoric: the year my 401k doubled, and I realized I was going to be OK.

MotoTrojan
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Re: Your most difficult and your most euphoric investing moments

Post by MotoTrojan » Sat Nov 16, 2019 2:38 am

LilyFleur wrote:
Sat Nov 16, 2019 2:19 am
most euphoric: the year my 401k doubled, and I realized I was going to be OK.
How did you double your 401k? Company stock?

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dratkinson
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Re: Your most difficult and your most euphoric investing moments

Post by dratkinson » Sat Nov 16, 2019 4:00 am

Most difficult time. Trusting more money to my worthless brother while he tried one failed investing scheme after another.


Most euphoric time. After the recovery began and I realizing that my investments had lost 20% during the Great Recession. I couldn't have been happier. Why? Because it was the first investing advice I'd received that had worked as advertised. (I'd had a forum review before it began and had been advised to change to more tax-efficient investments and a 50/50 AA. I did.)
d.r.a., not dr.a. | I'm a novice investor, you are forewarned.

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Re: Your most difficult and your most euphoric investing moments

Post by dogagility » Sat Nov 16, 2019 6:02 am

I'm fairly detached psychologically from my investment balances. I can't remember a truly difficult moment, even when balances went down by 4X my yearly salary. I trust the innovative nature of humans and believe I have time on my side.
Nothing too euphoric either. My investment balance has increase incrementally over the last 25 years... hard to get too excited about a slow drip.
:beer
Taking "risk" since 1995.

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oldcomputerguy
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Re: Your most difficult and your most euphoric investing moments

Post by oldcomputerguy » Sat Nov 16, 2019 6:52 am

My most difficult investing moment was in August 2015. We had just lost my mother-in-law the previous December. My wife asked my help in investing her inheritance. I had not yet found Bogleheads, and knew pretty much nothing about investing, but I did some reading in some (wrong) places, and invested the money in ten or so sector funds at Fidelity. Then, about a month later, China devalued the yuan and I stood watching as the S&P500 (and the investments I made with my wife's inheritance) took a drop of around 12% in a day or two. :shock:

Of course, that was not a large downturn (as downturns go), and the market came back very quickly. But it was the first market downturn of any type in which I had been paying attention, and at the time it seemed pretty bad. (I was 100% stock in my 401(k) during the Great Recession, but I never looked at the total, I just blithely kept shoving money into the account each paycheck. This probably saved me from making a very grave behavioral error.)

My most euphoric investing moment was when I found Bogleheads and discovered that investing properly wasn't something I needed a PhD to do.
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

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WoodSpinner
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Re: Your most difficult and your most euphoric investing moments

Post by WoodSpinner » Sat Nov 16, 2019 10:39 am

Most Difficult:
When I realized how much taxes I owed on all of the money I saved in Tax Deferred accounts! Spent a month in total shock and disbelief that I was likely to be in a higher tax bracket retired at 70 with RMDs than when I was working! Plus, mentally I had always thought of it as MY money — not mine and Uncle Sam’s.

Most Euphoric
When I realized that I had more than enough for a comfortable retirement NOW (was 57 when I finally discovered this) — not 8 years from now! Took awhile to wrap my head around the idea but decided that now was the time to shift gears and try a whole new lifestyle. Retired Jan2018 and so far so good!

Owe the kind folks here on BH an amazing debt of gratitude for all the help and advice! It’s been exhilarating!

WoodSpinner

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Kenkat
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Re: Your most difficult and your most euphoric investing moments

Post by Kenkat » Sat Nov 16, 2019 10:49 am

Most difficult was 2008-2009. I had a lot more money then than I did in the 2000 crash and it was a scary time indeed.

Most euphoric was I / we bought RS (Robertson Stephenson) Emerging Growth in 1999 in my wife’s SEP-IRA and it went up over 100% in a single year. She quit to stay home when our second son was born and I rolled the SEP over to Vanguard and sold the fund in Feb. 2000, right before the Nasdaq crash. Whew, that was a lucky one.

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