Share what worked in your plan during the crisis

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Clever_Username
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Joined: Sun Jul 15, 2012 12:24 am
Location: Southern California

Re: Share what worked in your plan during the crisis

Post by Clever_Username » Sun Apr 05, 2020 12:04 pm

Worked: Asset Allocation. I've said this a few places, my first "I'm paying attention now" investing was in 2012, although I did some reading before then. I had a small amount invested before then, without really knowing what I was doing or how to check it. I had maybe $1000 invested at the 2008 downturn. I had no idea how I'd react when something happened. So I went with age in bonds. And for eight or so years, I heard a lot about how it might be too conservative, I'm giving up growth, etc. While I have been very busy for the past month, my portfolio balance didn't cause me to lose sleep. I don't know if that would have been the same if I had fewer bonds. I will give it some thought in the coming months, but not immediate future.

What also worked: remembering that the long-term market average includes downturns like this!
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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TheTimeLord
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Joined: Fri Jul 26, 2013 2:05 pm

Re: Share what worked in your plan during the crisis

Post by TheTimeLord » Mon Apr 06, 2020 10:46 am

TheTimeLord wrote:
Fri Apr 03, 2020 9:35 pm
CULater wrote:
Fri Apr 03, 2020 1:54 pm
Larry Kotlikoff advised selling all your stocks 3 years ago, and followed his own advice. That turned out well.
On 1/3/2017 the market closed at 2257.83. Today it closed at 2488.65.
Now the market is at 2,608.82, behold the genius of Larry Kotlikoff.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]

flyingaway
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Joined: Fri Jan 17, 2014 10:19 am

Re: Share what worked in your plan during the crisis

Post by flyingaway » Mon Apr 06, 2020 11:11 am

Most 100% equity people are silent these days.
Most bond heavy people are doing the talking.

eldinerocheapo
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Location: Margaritaville

Re: Share what worked in your plan during the crisis

Post by eldinerocheapo » Mon Apr 06, 2020 11:17 am

ruralavalon wrote:
Sun Apr 05, 2020 11:31 am
eldinerocheapo wrote:
Sun Apr 05, 2020 9:12 am
Reduced TIRA distribution by 66%, from $3k per mo. to $1k
Started pulling EF's from MM and cashed out one of twenty cd's for $15k. This is good for (you guessed it) twenty years.
Reviewed DW's paycheck and closed gym membership through work (they are closed anyway), and reduced her 401k to 6%. Savings of about $2.5k yearly.
Reviewed monthly budget and got both of us into lower cost cell ph plans. Tello for me @ $15 a month (they are fantastic!). Verizon for her, $38 mo.
Future plans in the coming months are to start prior company pension @ $377 a month, and possibly begin SS for me @ $2k per mo.

I retired three months ago, and never saw this coming, then again, who did? We'll soldier through, and if push comes to shove, I will go back into the work force locally. In over 47 years in the workforce, I've bussed tables, washed dishes, digged ditches, labored on construction sites, and traveled extensively in the corporate world. No type of work is beneath me, and I've always found satisfaction in a job well done.
Congratulations on your recent retirement :D .

Good job on the budget review and reducing expenses. You will do fine. Be flexible.
Thank you for your kind and encouraging words. We're all in this together, and it's uplifting to read about the spirit and attitude of the Boglehead community during these trying times.
"Do, or do not." Yoda

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