Who is continuing to buy as planned?

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Tdubs
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Re: Who is continuing to buy as planned?

Post by Tdubs » Mon Mar 16, 2020 11:32 am

Every time I chicken out on making a buy, I am rewarded by another market plunge.

MrCastaway
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Re: Who is continuing to buy as planned?

Post by MrCastaway » Mon Mar 16, 2020 11:38 am

We 33/29 will continue to buy as normal but... my wife is ICU nurse so no job loss risk there (increasing shifts and hospital paying bonuses each shift) and we live well below our means enough to survive on just her salary. Also have a years worth of expenses in our emergency fund. I work in financial services so more job loss risk there but until I lose my job I’ll be leaning in and buying more than usual. After that I’ll be buying more with the tips I get from delivering pizza. Outside of the emergency fund we are 100% US equity so yes this has been a bit scary.

I think having healthcare worker in household provides a different perspective on the situation.

This will pass.
Last edited by MrCastaway on Mon Mar 16, 2020 11:45 am, edited 2 times in total.

lostdog
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Re: Who is continuing to buy as planned?

Post by lostdog » Mon Mar 16, 2020 11:42 am

Not changing a thing. Any extra cash that comes in above the emergency fund I invest.

This will pass and recover and those of us that held strong will be laughing to the bank.

Those that bailed and think this is the end of the world will take permanent losses or will still be on the sidelines wringing their hands on when to get back in.
Global Market Cap Equity/1 Year Cash/Bonds || 25x Expenses

shelanman
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Re: Who is continuing to buy as planned?

Post by shelanman » Mon Mar 16, 2020 11:52 am

I, too, am still running exactly on the plan.

I've been thinking about moving the short-term fixed income to cash, on the grounds that it no longer pays more, and I might want the cash if the real-estate market moves downward eventually -- but that's the only change I'm considering.

Meanwhile, tomorrow's buy will get many more shares than I would have guessed back in January. My account's contents market value is many fewer dollars that it was 60 days ago, but the assets, so far, are all still there, and the vast majority of the forms I own slices of will probably survive, and will eventually return to high profitability, most likely.

This downturn is starting to get slightly painful, but I think my plan will survive it.

Presintense
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Re: Who is continuing to buy as planned?

Post by Presintense » Mon Mar 16, 2020 11:58 am

Blue456 wrote:
Mon Mar 16, 2020 6:41 am
I just wanted to see who is staying the course?
I am.
Blue456 wrote:
Mon Mar 16, 2020 6:41 am
A lot of panic here....
Disappointing isn't it?

Blue456 wrote:
Mon Mar 16, 2020 6:41 am
Talk about MM fund crashing, bonds crashing, stocks are going down too.
This is "RISK". It shouldn't be a surprise to anyone.
Blue456 wrote:
Mon Mar 16, 2020 6:41 am
I started contributing into Wellesley Income Fund on January 1st 2020. I guess I have been the unlucky investor :) but I am staying the course.
I wouldn't consider you to be unlucky at all. This may turn out to have been a better time to start investing than any time over the past several years, don't stop. Keep a long view. The game is long. Years, not months.
Blue456 wrote:
Mon Mar 16, 2020 6:41 am
I don't think the US economy will collapse from this and never recover. I really think this panic will continue another month and then we start seeing stabilization of new corona virus cases in United States and then we will start rebounding.
Hopefully you realize that's a hunch and it's as likely to be right as it is to be wrong.
Performance = Potential - Distraction

SuperGrafx
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Re: Who is continuing to buy as planned?

Post by SuperGrafx » Mon Mar 16, 2020 12:21 pm

My 401k will continue to see regular purchases uninterrupted.

However, I am not a devout disciple of the Boglehead religion, so I may use my funds to purchase assets and individual stocks which currently are (and will continue to be) on sale. Much like I did in 2008.

BoggledHead2
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Re: Who is continuing to buy as planned?

Post by BoggledHead2 » Mon Mar 16, 2020 12:22 pm

lostdog wrote:
Mon Mar 16, 2020 11:42 am
Not changing a thing. Any extra cash that comes in above the emergency fund I invest.

This will pass and recover and those of us that held strong will be laughing to the bank.

Those that bailed and think this is the end of the world will take permanent losses or will still be on the sidelines wringing their hands on when to get back in.
This ... i'm at my brink/6 month emergency fund and struggled to wait until pay day to buy again!

Pullupking214
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Re: Who is continuing to buy as planned?

Post by Pullupking214 » Mon Mar 16, 2020 12:52 pm

Don't have any plans, but I DCA $1k every paycheck into the market. My current goal is to draft an IPS this week and fine tune it to avoid any impulse decisions. Should have done it over the weekend but got lazy. Will get it done today.

new2bogle
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Re: Who is continuing to buy as planned?

Post by new2bogle » Mon Mar 16, 2020 1:30 pm

Stay the course. I am still putting in ~$2200 per bi-weekly paycheck into my 2045 retirement fund. My AA goal is 90/10.

tony_roach
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Re: Who is continuing to buy as planned?

Post by tony_roach » Mon Mar 16, 2020 1:34 pm

-Still contributing to my 401K
-I recently submitted my Trad to Roth conversion for 2020 and bought the dip
-I purchased more for my taxable ETF during last week's big drop (used dollars from my E-fund which will be back filled with my RSU redemptions this week)

Just wished I had more dollars I could use to lower my cost basis....

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StormShadow
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Re: Who is continuing to buy as planned?

Post by StormShadow » Mon Mar 16, 2020 2:31 pm

Took a nibble at the dip/plummet today. Giddiyap. :oops:

lexor
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Re: Who is continuing to buy as planned?

Post by lexor » Mon Mar 16, 2020 2:33 pm

Blue456 wrote:
Mon Mar 16, 2020 6:41 am
I just wanted to see who is staying the course? A lot of panic here.... Talk about MM fund crashing, bonds crashing, stocks are going down too. I started contributing into Wellesley Income Fund on January 1st 2020. I guess I have been the unlucky investor :) but I am staying the course. I don't think the US economy will collapse from this and never recover. I really think this panic will continue another month and then we start seeing stabilization of new corona virus cases in United States and then we will start rebounding.
Or a lucky investor who gets to buy lower at the start of their investing... 8-)
“The miracle of compounding returns is overwhelmed by the tyranny of compounding costs.” -Mr. John C. Bogle

TheDDC
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Re: Who is continuing to buy as planned?

Post by TheDDC » Mon Mar 16, 2020 2:34 pm

Why would you not continue? This is a "one in a lifetime" opportunity to buy. I enjoyed seeing my shares stockpile at a faster rate during the last automatic buy in my 403(b) on Friday. I'm 37. I doubt I will see a better time to buy like this. Maybe I'm wrong. Hopefully if I'm wrong it won't be just before I retire. :sharebeer

That being said, I'm not changing any buying for my own account or mom's account that I manage. Once every two weeks for 403(b), once a month for mom's brokerage.

All new buys are 100% equities as they have already been.

-TheDDC
Rules to wealth building: 90-100% VTSAX piled high and deep, 0-10% VIGAX tilt, 0% given away to banks, minimize amount given to medical-industrial complex

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timboktoo
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Re: Who is continuing to buy as planned?

Post by timboktoo » Mon Mar 16, 2020 2:39 pm

I am continuing to buy as normal. My next quarterly rebalance date comes will be on April 1st. I am not concerned about my investments.

- Tim

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El Greco
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Re: Who is continuing to buy as planned?

Post by El Greco » Mon Mar 16, 2020 2:40 pm

We are making our regular 401k contributions to balanced funds. Me: LifeStrategy moderate growth. She:Fidelity Balanced. I still think we have a few more legs down to go. As another poster said, when the thought of buying more equities makes me sick to my stomach, I will rebalance in my 3 fund Rollover IRA portfolios and Taxable back to 60/40. I was planning to retire at the end of June. We'll see. Man plans, God laughs.

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bluquark
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Re: Who is continuing to buy as planned?

Post by bluquark » Mon Mar 16, 2020 2:46 pm

I'm unenthusiastically continuing to invest my paycheck as per usual, as my IPS says not to panic sell.

But I have zero interest in increasing my AA and am a bit bemused by all the market timers proudly coming out after the first stages of a crash to do so. "Be greedy when others are fearful" is just a catchy but meaningless proverb -- people are taking it far too literally. 2017 prices with a much darker medium-term outlook doesn't smell like a buying opportunity of a lifetime to me.

To me all this greedy buying means we are still in the overhang of the bull market. While the market was going up, some Bogleheads were only comfortable holding bonds with the idea that it was not only protection but also "dry powder" that will boost their returns more in the future. Now they are executing on this misconception with relief.
70/30 portfolio | Equity: global market weight | Bonds: 20% long-term munis - 10% LEMB

new2bogle
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Re: Who is continuing to buy as planned?

Post by new2bogle » Mon Mar 16, 2020 2:59 pm

TheDDC wrote:
Mon Mar 16, 2020 2:34 pm
Why would you not continue? This is a "one in a lifetime" opportunity to buy. I enjoyed seeing my shares stockpile at a faster rate during the last automatic buy in my 403(b) on Friday. I'm 37. I doubt I will see a better time to buy like this. Maybe I'm wrong. Hopefully if I'm wrong it won't be just before I retire. :sharebeer

That being said, I'm not changing any buying for my own account or mom's account that I manage. Once every two weeks for 403(b), once a month for mom's brokerage.

All new buys are 100% equities as they have already been.

-TheDDC
This once in a lifetime opportunity is happening a second time in about a decade!

tim1999
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Re: Who is continuing to buy as planned?

Post by tim1999 » Mon Mar 16, 2020 3:05 pm

Last week I set my new 401k contributions to go into the stable value fund. Just not comfortable immediately lighting the money on fire in this decline as soon as it hits the account. I would need to see some stability in the world before committing to add to equities again. Sure, I'll miss the bottom but I need to sleep at night.

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1789
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Re: Who is continuing to buy as planned?

Post by 1789 » Mon Mar 16, 2020 3:10 pm

Always buying. But, making sure to keep CASH handy in the meantime.
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milktoast
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Re: Who is continuing to buy as planned?

Post by milktoast » Mon Mar 16, 2020 3:10 pm

I'm following my IPS.

Shifted my bimonthly contributions to 100% stock (roughly 0.6% of portfolio each time). Also fired in extra today for the third time (roughly 1.25% each time) as specified by my IPS.

Bought 2/27 (sp500 2978), 3/9 (sp500 2746), and today 3/16 (2383). Only have funds to fire in extra one more time (can't happen until next pay period). That first purchase made at 13% off peak has now dropped another 20% - too early. After the recovery, I think I'll adjust IPS to require a deeper dip before firing in extra from my cash reserves.

Could end up rebalancing for the first time as early as tomorrow if we have a down/flat day. So yeah, I'm buying per plan - which is pretty aggressive.

Executing faithfully, but it's starting to worry me that my plan was really built to take advantage of short sharp dips like 2018 rather than a disaster like 2008 - always fighting the last battle. Lol. But as long as I don't get laid off and we recover within 5-10yrs, it's fine.

MathWizard
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Re: Who is continuing to buy as planned?

Post by MathWizard » Mon Mar 16, 2020 3:16 pm

I am continuing to max tax advantaged in the same manner as I have the last 3 years.

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MortgageOnBlack
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Re: Who is continuing to buy as planned?

Post by MortgageOnBlack » Mon Mar 16, 2020 3:26 pm

I prefer my DCA plan which I've strayed from the past month. I find myself chasing the dip with my contributions and tapping into Emergency Fund money which is starting to make me uncomfortable - I prefer to invest as I earn it. I'm going to get back on the DCA train.

I did make my last "buy the dip" contribution last Thursday. After the losses today (I did not buy today, but came very close), I'm going to set my investments on auto-pilot. I'd really hate to time the market the way I have been to find out that stocks will be significantly cheaper towards the end of the year. Fortunately, I did get a piece of the pie last Thursday

theorist
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Re: Who is continuing to buy as planned?

Post by theorist » Mon Mar 16, 2020 3:46 pm

We have our usual contributions maxxing out 401 plans and 457 plans going in every two weeks at our normal 70/30 allocation. In addition I’m using some of our disposable income which normally sits around for random expenditures to plow a little extra into the market. Today, bought some S&P 500 and total international index, and also a few shares of Berkshire Hathaway B (the only individual stock I’ve ever purchased; I’ve had some for many years).

schwank
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Re: Who is continuing to buy as planned?

Post by schwank » Mon Mar 16, 2020 3:54 pm

Still sticking to monthly 401k purchases, though for now I have set the investment allocation to 100% VTI. I did tax gain harvest for my minor child back in December and January, so I think I will TLH now to take her back to zero net income on the year.

cantabtim
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Re: Who is continuing to buy as planned?

Post by cantabtim » Mon Mar 16, 2020 3:57 pm

Was planning to retire later this year so the timing is not ideal. But we have 50/50 allocation plus 2-3 years of expenses in boring cash (half in a CD ladder averaging 2.5% and half in online savings paying 1%) so unless total armageddon strikes I think we will still finish at the end of July. I did just switch my twice-monthly 401k contribution from 100% VBMFX to 100% VFINX (or whatever the institutional versions are offered by my megacorp plan). They're not inconsiderable as I have access to mega backdoor Roth and am trying to max everything out for the year before the end of July.

lexor
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Re: Who is continuing to buy as planned?

Post by lexor » Mon Mar 16, 2020 4:03 pm

cantabtim wrote:
Mon Mar 16, 2020 3:57 pm
Was planning to retire later this year so the timing is not ideal. But we have 50/50 allocation plus 2-3 years of expenses in boring cash (half in a CD ladder averaging 2.5% and half in online savings paying 1%) so unless total armageddon strikes I think we will still finish at the end of July. I did just switch my twice-monthly 401k contribution from 100% VBMFX to 100% VFINX (or whatever the institutional versions are offered by my megacorp plan). They're not inconsiderable as I have access to mega backdoor Roth and am trying to max everything out for the year before the end of July.
Roth conversions are an option to consider for recent retirees to effectively simulate continuing to work (minus SS increases) until RMDs kick in. Depends on your tax brackets, etc. of course but I'd think for a lot of people it'd make sense.
“The miracle of compounding returns is overwhelmed by the tyranny of compounding costs.” -Mr. John C. Bogle

lexor
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Re: Who is continuing to buy as planned?

Post by lexor » Mon Mar 16, 2020 4:13 pm

Blue456 wrote:
Mon Mar 16, 2020 6:41 am
I just wanted to see who is staying the course? A lot of panic here.... Talk about MM fund crashing, bonds crashing, stocks are going down too. I started contributing into Wellesley Income Fund on January 1st 2020. I guess I have been the unlucky investor :) but I am staying the course. I don't think the US economy will collapse from this and never recover. I really think this panic will continue another month and then we start seeing stabilization of new corona virus cases in United States and then we will start rebounding.
I bought a few times during the last 2 big down days but mostly going to continue as planned. I really didn't have much dry powder so it's mostly income. I guess I did market time :oops: but at least it was only a couple grand...I am not like many people who claim to be 100% stocks but are 80% stocks and 20% cash...

I did switch from 100% conventional index funds to about 30% NTSX and 70% conventional stock index funds but not because of the dip.
“The miracle of compounding returns is overwhelmed by the tyranny of compounding costs.” -Mr. John C. Bogle

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Toons
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Re: Who is continuing to buy as planned?

Post by Toons » Mon Mar 16, 2020 4:25 pm

Me
Vanguard Intermediate Term Tax Exempt
Vanguard Lifestrategy Conservative Growth
:mrgreen:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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sergeant
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Re: Who is continuing to buy as planned?

Post by sergeant » Mon Mar 16, 2020 4:32 pm

I'm still buying as planned. Tough to see what is happening but with 20+ years of expenses in MM, stable value, EE bonds, and cash it makes it easier to keep on buying.
AA- 20+ Years of Expenses Fixed Income/The remainder in Equities.

Crazyhats5
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Re: Who is continuing to buy as planned?

Post by Crazyhats5 » Mon Mar 16, 2020 6:20 pm

I have a dumb question..what do you guys mean by keep buying? I have my 401k set to max and each check they “buy”.

A general explanation will help me.

Thanks

-Adam

lexor
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Re: Who is continuing to buy as planned?

Post by lexor » Mon Mar 16, 2020 6:44 pm

Crazyhats5 wrote:
Mon Mar 16, 2020 6:20 pm
I have a dumb question..what do you guys mean by keep buying? I have my 401k set to max and each check they “buy”.

A general explanation will help me.

Thanks

-Adam
Yes they mean buying into your typical investments in your 401k, IRA, taxable, etc. - whatever you normally do.
“The miracle of compounding returns is overwhelmed by the tyranny of compounding costs.” -Mr. John C. Bogle

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Blue456
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Re: Who is continuing to buy as planned?

Post by Blue456 » Mon Mar 16, 2020 6:44 pm

Crazyhats5 wrote:
Mon Mar 16, 2020 6:20 pm
I have a dumb question..what do you guys mean by keep buying? I have my 401k set to max and each check they “buy”.

A general explanation will help me.

Thanks

-Adam
Adam, there are people out here who are cashing out of their stocks and bonds. By keep on buying means, you are not only not stopping investing but you also continue to invest.

Crazyhats5
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Re: Who is continuing to buy as planned?

Post by Crazyhats5 » Mon Mar 16, 2020 7:11 pm

Thank you! That’s what I thought just wanted to clarify.
I’m buying away then!!

kelvan80
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Re: Who is continuing to buy as planned?

Post by kelvan80 » Mon Mar 16, 2020 8:11 pm

Bought $500 of international today. Someday it'll pay off.

manuvns
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Re: Who is continuing to buy as planned?

Post by manuvns » Mon Mar 16, 2020 8:16 pm

bugleheadd wrote:
Mon Mar 16, 2020 11:29 am
bought some VTI at 125
got some VTI at 120.5

CFK
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Re: Who is continuing to buy as planned?

Post by CFK » Mon Mar 16, 2020 9:16 pm

I have a slight tactical allocation, based on valuation and treasury rates. In January, my allocation was supposed to be 70/30. Given the collapse in interest rates and drop in valuations, my allocation is currently supposed to be 85/15, according to my IPS. My thinking when I wrote out my IPS was that if I had more money to invest in a downturn, it would make the bear market or correction feel like an opportunity, not a loss (even if tactical allocation in the long-term doesn't "beat the market", I figured it would offer certain psychological benefits).

This worked well in 2018. I was completely unphased by the 2018 meltdown, given that there was nothing visible occurring in the real economy. This time around, though, I'm worried. My wife got laid off last Thursday, and our daycare is closed. We have another baby due this summer. My firm didn't lay anyone off during the great recession, but I'm nervous - mandatory work from home policy, and I'm very light currently on work. And there is no end in sight.

Still, I'm continuing to invest as planned. I'm moving toward my goal by 1) investing all new money in stocks and 2) selling $5,000 in bonds and buying stocks every Friday. I'll stop once I'm at 85/15..

The main thing that gives me confidence to continue on this course is that between our emergency fund and that last 15% in bonds, even if I lost my job, we could live for a year or more without eating into our equity.

IMhooked
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Re: Who is continuing to buy as planned?

Post by IMhooked » Mon Mar 16, 2020 9:32 pm

Staying the course and sticking with the plan. Enjoying time with my 8 and 5 yr old home from school.

dru808
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Re: Who is continuing to buy as planned?

Post by dru808 » Mon Mar 16, 2020 9:33 pm

Blue456 wrote:
Mon Mar 16, 2020 6:41 am
I just wanted to see who is staying the course? A lot of panic here.... Talk about MM fund crashing, bonds crashing, stocks are going down too. I started contributing into Wellesley Income Fund on January 1st 2020. I guess I have been the unlucky investor :) but I am staying the course. I don't think the US economy will collapse from this and never recover. I really think this panic will continue another month and then we start seeing stabilization of new corona virus cases in United States and then we will start rebounding.


Yup, every Monday on the dot, auto draft to m1.
60% US equity | 25% International equity | 15% US Treasury bonds

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Phineas J. Whoopee
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Re: Who is continuing to buy as planned?

Post by Phineas J. Whoopee » Mon Mar 16, 2020 9:39 pm

I'm turning the crank and following the plan I wrote.
PJW

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JonnyDVM
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Re: Who is continuing to buy as planned?

Post by JonnyDVM » Mon Mar 16, 2020 9:49 pm

Yes yes. Still buying. I’m not quite dead yet.
I’d trade it all for a little more | -C Montgomery Burns

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watchnerd
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Re: Who is continuing to buy as planned?

Post by watchnerd » Mon Mar 16, 2020 11:07 pm

manuvns wrote:
Mon Mar 16, 2020 8:16 pm
bugleheadd wrote:
Mon Mar 16, 2020 11:29 am
bought some VTI at 125
got some VTI at 120.5
You guys crack me up.

I have no idea what prices I'm buying at.

It's all auto pilot.
70% Global Market Weight Equities | 15% Long Treasuries 15% short TIPS & cash || RSU + ESPP

L82GAME
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Re: Who is continuing to buy as planned?

Post by L82GAME » Mon Mar 16, 2020 11:12 pm

Blue456 wrote:
Mon Mar 16, 2020 6:41 am
I just wanted to see who is staying the course? A lot of panic here.... Talk about MM fund crashing, bonds crashing, stocks are going down too. I started contributing into Wellesley Income Fund on January 1st 2020. I guess I have been the unlucky investor :) but I am staying the course. I don't think the US economy will collapse from this and never recover. I really think this panic will continue another month and then we start seeing stabilization of new corona virus cases in United States and then we will start rebounding.
My wife and I will continue to DCA via my 457, and periodically rebalance existing accounts to maintain our currently agreed to AA. We will not be greedy and use important EF cash equivalents to buy equities. We are staying the course. Good luck to all here! 🍀

HawkeyePierce
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Re: Who is continuing to buy as planned?

Post by HawkeyePierce » Mon Mar 16, 2020 11:13 pm

I haven't sold anything. My 401k contributions are being invested as normal, but I'll admit I got my bonus last week. Usually I'd invest but I'm considering holding it in cash at the moment to give myself a full twelve months of living expenses just in case.

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watchnerd
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Re: Who is continuing to buy as planned?

Post by watchnerd » Mon Mar 16, 2020 11:24 pm

HawkeyePierce wrote:
Mon Mar 16, 2020 11:13 pm
I haven't sold anything. My 401k contributions are being invested as normal, but I'll admit I got my bonus last week. Usually I'd invest but I'm considering holding it in cash at the moment to give myself a full twelve months of living expenses just in case.
Wise move.
70% Global Market Weight Equities | 15% Long Treasuries 15% short TIPS & cash || RSU + ESPP

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anon_investor
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Re: Who is continuing to buy as planned?

Post by anon_investor » Mon Mar 16, 2020 11:28 pm

HawkeyePierce wrote:
Mon Mar 16, 2020 11:13 pm
I haven't sold anything. My 401k contributions are being invested as normal, but I'll admit I got my bonus last week. Usually I'd invest but I'm considering holding it in cash at the moment to give myself a full twelve months of living expenses just in case.
I am basically doing something similar, although 15% of my bonus went to my 401k (regular contribution + megaback door roth contribution) so I feel like I did at least invest something into the sinking market. I will probably buy $10k worth of I Bonds, although maybe I will by $20k, as I doubt that 0.2% fixed rate remains after May 1.

jbinpa59
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Re: Who is continuing to buy as planned?

Post by jbinpa59 » Tue Mar 17, 2020 3:02 am

married 60yo fed 4-5 years from planned retirement, 58 yo wife part time retail also about 4 yrs from retirement
we normally agi about 95K and live in a low cost area
no debt or obligations other than DW helping her parents $500/mo

I'm not buying as originally planned

we were at AA of 70% domestic equities / 30% combined of everything else, Bonds index fund/F fund/G fund/CD's and a 6mo EMF as cash
currently AA is closer to 60:40 this close to retirement i won't sell Fixed income to buy stocks
BUT
I was set to about max my roth TSP and catch up with dca contributions of $962 a pay at 65% C fund/ 10% s fund / 25% g fund
plus shift 7k for each of us from our small taxable account to roth iras as in kind sometime this year
INSTEAD
What i'm doing with TSP right now is dca ing $1250 a pay 100% into C fund as long as we can deal with the reduced net to bank
and watching for a bit to lump sum into the roth iras from taxable most likely still in kind

craimund
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Re: Who is continuing to buy as planned?

Post by craimund » Tue Mar 17, 2020 3:11 am

jbinpa59 wrote:
Tue Mar 17, 2020 3:02 am
married 60yo fed 4-5 years from planned retirement, 58 yo wife part time retail also about 4 yrs from retirement
we normally agi about 95K and live in a low cost area
no debt or obligations other than DW helping her parents $500/mo

I'm not buying as originally planned

we were at AA of 70% domestic equities / 30% combined of everything else, Bonds index fund/F fund/G fund/CD's and a 6mo EMF as cash
currently AA is closer to 60:40 this close to retirement i won't sell Fixed income to buy stocks
BUT
I was set to about max my roth TSP and catch up with dca contributions of $962 a pay at 65% C fund/ 10% s fund / 25% g fund
plus shift 7k for each of us from our small taxable account to roth iras as in kind sometime this year
INSTEAD
What i'm doing with TSP right now is dca ing $1250 a pay 100% into C fund as long as we can deal with the reduced net to bank
and watching for a bit to lump sum into the roth iras from taxable most likely still in kind
Fed with $1,000 per PP going in to TSP - combination of C (60) and S (40).
"When you ain't got nothing, you got nothing to lose"-Bob Dylan 1965. "When you think that you've lost everything, you find out you can always lose a little more"-Dylan 1997

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Tamarind
Posts: 2162
Joined: Mon Nov 02, 2015 2:38 pm

Re: Who is continuing to buy as planned?

Post by Tamarind » Tue Mar 17, 2020 6:25 am

Yep, buying as planned (not early, no dry powder, just keeping right on).

I did hit a rebalance band for the first time ever so I sold bonds to buy stocks yesterday. Likely won't need to do it again unless/until stocks drop another 25-30%.

401k should buy in the next day or two. Buying intl equities in Roth later this week. Everything is on autopilot with different frequencies due to payroll timing and settlement time by account but something gets bought almost every week.

We save 30% of gross so invest we must.

dukeblue219
Posts: 705
Joined: Fri Jan 29, 2016 12:40 pm

Re: Who is continuing to buy as planned?

Post by dukeblue219 » Tue Mar 17, 2020 7:18 am

I haven't changed my biweekly 401k (well, TSP) contributions, the investment balance, or even looked at it once. I do follow the daily moves in the market and my taxable balance closely, but so far I've tinkered just slightly in taxable.

In 08/09 I had just a few k to play with (in grad school) and I actually made out OK but got a lot of the urge to chase a falling knife or panic sell out of my system. I wish I'd rebalanced my taxable slightly (into more bonds or cash) like I was seriously planning in Feb, but at this point I'm just letting it ride.

afan
Posts: 4882
Joined: Sun Jul 25, 2010 4:01 pm

Re: Who is continuing to buy as planned?

Post by afan » Tue Mar 17, 2020 7:45 am

I rebalanced some money out of stocks into Treasuries in late December, as the strong market had brought me well above my desired asset allocation. No predicting involved. I check for the need to rebalance twice a year and this time it was called for.

I plan to check again in late June and act accordingly.

I don't sell in taxable accounts to rebalance since that forces taxable gains. So all the selling is in tax favored accounts. I adjust the allocation of contributions to taxable accounts to gently nudge in the direction I need. Due to string stock returns during the long bull market, my regular contributions in taxable have tended more towards fixed income. Left a lot of money on the table doing that, Iwould have had a lot higher networth if I had just let my stock allocation rise with the market, but the plan seemed rational.

At the moment my "set and forget" rules don't call for any action.

As for claims that stocks are a screeming buy- remember that even after these these drops traditional metrics have them still richly valued. PE, Shiller PE, earnings and dividend yields and so forth. That is before considering that we are going into recession.

Just as I don't use predictions of returns to decide when to sell stocks, I don't use such predictions to decide when to buy. I leave such predictions to the market, as reflected in the share price of TSM and accept what the market gives.

So I set and forget.
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama

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