How do you "Stay the Course"?

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heyyou
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Re: How do you "Stay the Course"?

Post by heyyou » Thu Jan 16, 2014 11:21 pm

As a slice and dicer, I usually have something that is doing well regardless of the portfolio balance.

Been through enough cycles to know that patience is fullness, and that DW and I will muddle through whatever develops.

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HawaiiBrewer
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Re: How do you "Stay the Course"?

Post by HawaiiBrewer » Fri Jan 17, 2014 8:18 pm

1) avoid the media "noise"
2) get more involved in my hobbies
3) stop into the Boglehead's Forum when you need a "pep talk" or just to see how "your" community is doing
4) have faith in your plan...see # 3 above


aloha :beer
If you don't know where you are going, any road will get you there

jginseattle
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Re: How do you "Stay the Course"?

Post by jginseattle » Fri Jan 17, 2014 8:29 pm

I recall what happened when I failed to stay the course!

peddler12
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Re: How do you "Stay the Course"?

Post by peddler12 » Fri Jan 30, 2015 1:42 pm

I must say I've truly enjoyed reading this thread. Thanks to all the posters who contributed to it.

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max12377
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Re: How do you "Stay the Course"?

Post by max12377 » Fri Jan 30, 2015 1:47 pm

I think about all those little dividend payments being re-invested while the market is low.

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pennstater2005
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Re: How do you "Stay the Course"?

Post by pennstater2005 » Fri Jan 30, 2015 2:17 pm

By tuning out the noise, which isn't that hard since I don't have any financial apps or CNBC on at home. My money is automatically invested each month. I peek only occasionally now. Hell, the most noise I hear is at bogleheads but it's mostly good noise :beer
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson

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stemikger
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Re: How do you "Stay the Course"?

Post by stemikger » Fri Jan 30, 2015 6:09 pm

Blue wrote:How do you "stay the course"? What tools and strategies do you utilize?
Great question. In the biggest way I stay the course by keeping the same two index funds which is The Vanguard Institutional Index Fund and The Blackrock U.S. Debt Index. Where I fail is changing my asset allocation every time I hear someone I respect talk about why bonds are dangerous (i.e. Warren Buffett's statement).

Thanks to people here, they give me some tough love every time I post what I am about to do and they yell at me and protect me from myself. I literally have been all over the place with my AA but I'm back on track for my age at this point and I know I'm in the right place because I sleep well at night. When I briefly went 100% stocks at 50, I wasn't sleeping too well. Good thing I didn't get caught in a major downturn.

I'm currently at 65/35 stocks/bonds which is where I should have been all along. Will eventually glide my way to 60/40 and stay there for quite some time.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

Dandy
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Re: How do you "Stay the Course"?

Post by Dandy » Sat Jan 31, 2015 10:43 am

First of all I use stay the course as an important guide not a commandment. The best things that keep me from tinkering with my portfolio, allocation or excessive worrying about the "market":
1. I am fortunate to believe I have enough assets to fund my retirement. Frugal life style, Boglehead investing and mostly luck.
2. I am investing for capital preservation vs growth -42% equities/58% fixed income
3. I have enough "safe" products (short term bond funds, FDIC products etc) to fund my retirement at these expense levels to age 90+.
A la Wm Bernsten.
4. I am delaying SS until age 70 (3 more years) at that time my withdrawal needs may be minimal.

So, while I still hate it when the markets plunge - I have no panic or sleepless nights. Moves I make are usually to simplify my portfolio, or rebalance it. I've also been around enough to know that predictions are usually worthless.

During the accumulation phase I had a moderate risk portfolio and contributed mostly in the mid to upper teens each year. I benefited greatly from a good equity market and high interest rates on my Stable Value Fund. So there was little temptation to get off course. I don't know that my approach would be as successful nowadays.

malabargold
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Re: How do you "Stay the Course"?

Post by malabargold » Sat Jan 31, 2015 10:50 am

When stocks are low we see only the word "SALE"" and we concentrate on the #number of shares# we
are accumulating through new accelerated purchases and dividend reinvestment, not the dollar value.

Been investing this way through thick and thin for the better part of 50 years. After that long the dividend
stream is so big, the underlying market price of the securities really dosen't matter

sambb
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Re: How do you "Stay the Course"?

Post by sambb » Sat Jan 31, 2015 11:04 am

deleted
Last edited by sambb on Sat Jan 31, 2015 5:06 pm, edited 1 time in total.

columbia
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Re: How do you "Stay the Course"?

Post by columbia » Sat Jan 31, 2015 12:35 pm

My IRA is in the Vanguard Balanced Index fund and I just pivot around that in my 403b to reach my desired allocation. It's simple and I don't spend any time thinking about what I should contribute to.

sschullo
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Re: How do you "Stay the Course"?

Post by sschullo » Sun Feb 01, 2015 9:54 am

The Wizard wrote:I'm retired, so there's less that needs doing now.
I monitor my AA and plan ahead for the next adjustment.
Looks like I'll sell a percent of holdings in stocks and move it to bonds before long.
That's about as exciting as it gets anymore...
+1
Public School K-12 Educators: "Ask NOT what your annuity sales person can do for you, ask what you can do to be a Do-It-Yourselfer (DIY)."

BogleBoogie
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Re: How do you "Stay the Course"?

Post by BogleBoogie » Sun Feb 01, 2015 10:07 am

Blue wrote:How do you "stay the course"? What tools and strategies do you utilize?
I do nothing.

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cheese_breath
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Re: How do you "Stay the Course"?

Post by cheese_breath » Sun Feb 01, 2015 10:16 am

Old age and willpower. I've seen many ups and downs and learned the downs are eventually followed by bigger ups. I remember the day trading rage in the 90s when anyone with a computer made money. I also remember when they lost it all during the early 2000s. That doesn't mean emotion doesn't tempt me sometimes, but it's times like that when willpower and memory of the past help me stay the course.
The surest way to know the future is when it becomes the past.

x76apple
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Re: How do you "Stay the Course"?

Post by x76apple » Sun Feb 01, 2015 11:38 am

Watching the market move up and down during corrections can certainly be scary.... But the minute one starts market timing it's like one is in a casino where the odds are pitted against them.

Why one would sell during a downturn if they have a proper asset allocation with age appropriate glide path is beyond me.

Knowing that the chances of success are greater with buy and hold vs market timing deters me from ever trying to time the market. Why enter a fight if the odd's are against you? The way I see it, it's like bringing a knife to a gun fight!

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oldzey
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Re: Re:

Post by oldzey » Sun Feb 01, 2015 1:14 pm

joe8d wrote:
Fallible wrote:
livesoft wrote:I understand what The Course is and I understand what The Course has been. If you don't understand The Course, then there is no hope of Stay The Course. There will be no understanding of what The Course will be.

I can watch all the news, read all the articles, hang out at Bogleheads, and still not have my mind changed about The Course. I own The Course. The Course does not own me.

And Your Course is not my The Course.
Jack Bogle would love this! :D :thumbsup
+2
+3
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

john94549
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Re: How do you "Stay the Course"?

Post by john94549 » Sun Feb 01, 2015 9:16 pm

We're 67 (pushing 68) and may start withdrawals next year. Our first 15 years (or so) of retirement is covered by Social Security, my wife's modest pension, taxable CD interest, and IRA CDs. Makes it easier to "stay the course" in our other tax-deferred equity and bond funds, which won't come into play for quite some time.

vested1
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Re: How do you "Stay the Course"?

Post by vested1 » Mon Feb 02, 2015 7:34 pm

My resolve to stay the course is strengthened when I talk to my friends about financial matters, but only at their request. I'm in it for the long haul and have resisted the urge to take out dividends that I don't need, or to file for SS early because of either distrust of the government or impatience. I ran into another old friend today who retired from my previous employer in 1995 and drew $1,000 a month from his retirement account while continuing to work until last year, even though he didn't need to. He also filed for SS at 62 and told me he had simply put the money in the bank because he didn't need the extra monthly check from his retirement account.

I would never criticize any of them, but this particular individual has about 25% of what we have in retirement savings due to a desire to receive all income as soon as it's available, when he had an even greater opportunity to grow his savings than I had. Knee jerk reactions and lack of unselfish investment advice lead too many of my friends and acquaintances down the primrose path. The sad part is that this latest friend who I spoke to today uses a financial advisor who is recommended by my former employer. It would seem that better advice would have been forthcoming from this advisor who seems to be content with draining my friend's account.

Firm and steady is the hand on the tiller. At least it is now thanks to this forum and the wise advice I've been given.

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Clearly_Irrational
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Re: How do you "Stay the Course"?

Post by Clearly_Irrational » Mon Feb 02, 2015 7:43 pm

1) Have some rules you believe in (don't take this step lightly)
1a) You should have a rule about when it's permissible to change your rules
2) Write them down
3) Follow what you wrote down

Your rules don't have to be the same as everyone else, mine certainly aren't

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goodenyou
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Re: How do you "Stay the Course"?

Post by goodenyou » Mon Feb 02, 2015 10:21 pm

livesoft wrote:I understand what The Course is and I understand what The Course has been. If you don't understand The Course, then there is no hope of Stay The Course. There will be no understanding of what The Course will be.

I can watch all the news, read all the articles, hang out at Bogleheads, and still not have my mind changed about The Course. I own The Course. The Course does not own me.

And Your Course is not my The Course.
When I once asked my surgery professor in Residency if he was going to "The Course" (reference to a CME course), he responded "Son, there are only two courses I like, the golf course and intercourse". My fellow residents still laugh at that moment 20 years later. :sharebeer
"Ignorance more frequently begets confidence than does knowledge" | Do you know how to make a rain dance work? Dance until it rains.

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Steadfast
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Re: How do you "Stay the Course"?

Post by Steadfast » Tue Feb 03, 2015 5:09 pm

I am a slave to my IPS.

It is sometimes a cruel master.
We don't see things as they are, we see things as we are.

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ofcmetz
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Re: How do you "Stay the Course"?

Post by ofcmetz » Tue Feb 03, 2015 9:36 pm

Steadfast wrote:I am a slave to my IPS.

It is sometimes a cruel master.

This works for me as well. I've gotten pretty good a referring back to my written IPS whenever I'm tempted to stray from the plan. I've put this same magic to work with my diet as well.
Never underestimate the power of the force of low cost index funds.

peddler12
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Re: How do you "Stay the Course"?

Post by peddler12 » Tue Aug 25, 2015 5:25 pm

It feels so good to see the market in action and know what course of action to take which is for the most part do nothing. Can I say thank you. All of you have helped me so much. I want to say thank you.

Dandy
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Re: How do you "Stay the Course"?

Post by Dandy » Tue Aug 25, 2015 5:53 pm

1. I'm in pretty good financial shape so I have a margin of safety --not everyone is as lucky.
2. I have a conservative allocation about 40/60.
3. In my TIRA all equities are in Balanced Index and Wellesley so they are automatically rebalanced.
4. I have a diversified fixed income allocation e.g. TIPS, EE bonds, short term bonds and a large CD ladder
5. I put a high priority on Wm Bernstein's approach - I have enough in "safe" assets to fund retirement to age 90 (I'm 67).
6. I have savings to fund retirement until age 70 to collect SS.
7. I have a decent but not overly expensive life style that I try to improve gradually.
8. These markets do make me anxious but having a conservative allocation keeps me calm -- for now :oops:

antiqueman
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Re: How do you "Stay the Course"?

Post by antiqueman » Tue Aug 25, 2015 7:02 pm

This round of declines is the first time I have been able to stay the course.

I think the reason I can do this, is because my wife and I both have good jobs and we have sufficient CD's , G Fund and Stable Value Fund investments to give us basic living expenses for 15 years. Also reading this forum for 6 years has been invaluable.

In the past, a drop like we have had the past week would have made me feel very uncomfortable and I might have even sold some stocks this morning when the market shot up. Instead, I bought shares yesterday.

I am not saying I like or feel comfortable with the market falling. I don't like it even though I think I have enough set aside for 15 years.

But I do think that for those that are risk adverse, if you can lock up x number of years of basic expenses in CD's or similar type investments the downturns will not affect you as much and help you stay the course.

sharukh
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Re: How do you "Stay the Course"?

Post by sharukh » Fri Nov 16, 2018 1:53 pm

livesoft wrote:
Tue Jan 14, 2014 8:49 pm
I understand what The Course is and I understand what The Course has been. If you don't understand The Course, then there is no hope of Stay The Course. There will be no understanding of what The Course will be.

I can watch all the news, read all the articles, hang out at Bogleheads, and still not have my mind changed about The Course. I own The Course. The Course does not own me.

And Your Course is not my The Course.
LOL. Amazing. Wish I could develop that caliber.

GibsonL6s
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Re: How do you "Stay the Course"?

Post by GibsonL6s » Fri Nov 16, 2018 2:11 pm

meowcat wrote:
Wed Jan 15, 2014 7:15 am
"Don't peek"!
Funny for me, I actually trained myself to do the opposite, which is look on the bad days. I see that I am down X dollars, but I also see that the fixed income part of my portfolio which for me is Treasuries is in place and the amount I feel comfortable having to "weather" a downturn and it gives me the comfort that my AA is fine and then I continue on with my day. YMMV

Tamalak
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Re: How do you "Stay the Course"?

Post by Tamalak » Fri Nov 16, 2018 2:15 pm

How do you "stay the course"?
By being as emotional as I please, and peeking whenever I want, but simply choosing not ever to stray from my investment protocol.

Stoicism is better and simpler than any other emotional strategy imo. For investing and life in general.
Last edited by Tamalak on Fri Nov 16, 2018 2:16 pm, edited 1 time in total.

dcabler
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Re: How do you "Stay the Course"?

Post by dcabler » Fri Nov 16, 2018 2:15 pm

GibsonL6s wrote:
Fri Nov 16, 2018 2:11 pm
meowcat wrote:
Wed Jan 15, 2014 7:15 am
"Don't peek"!
Funny for me, I actually trained myself to do the opposite, which is look on the bad days. I see that I am down X dollars, but I also see that the fixed income part of my portfolio which for me is Treasuries is in place and the amount I feel comfortable having to "weather" a downturn and it gives me the comfort that my AA is fine and then I continue on with my day. YMMV
I peek pretty often but it's to:
1. Identify any TLH opportunities
2. See if I'm hitting any of my rebalance bands
3. Determine which funds are below target and direct each months deposits accordingly.

And, yep, I panicked in 2008 and got out. Then got religion only about a month later and got back in. Fortunately things were pretty close to the same on the day I got back in.

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