How do you fight the urge to micromanage?

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SinisterMethods
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How do you fight the urge to micromanage?

Post by SinisterMethods » Thu Jun 01, 2017 5:04 pm

I'm a student going for my tech degree, but I had a bunch of money in the bank that I wanted to put to work.

I will be building a CD ladder soon, but today I dropped about 75 percent of it on a 3 fund portfolio with Vanguard (total US index, total International index, total bond index).

Dropping this much money at once is nerve wracking. I'm not used to it. Should I just avoid checking the market for a few months? All of a sudden I want to micromanage the situation, but I might go crazy if I keep watching the market go up and down. The plan is to just let these funds ride for decades.

I don't know how people in the stock market do it. I've only been researching this subject for a couple of weeks, but there's an urge to try and control the situation and micromanage it. I'm glad I went with total index funds. I would probably lose a lot of money fidgeting with my investments.

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Re: How do you fight the urge to micromanage?

Post by willthrill81 » Thu Jun 01, 2017 5:08 pm

No matter whether you're in stocks, bonds, or anything else, if you're tempted to micromanage, there's a simple and usually effective solution: stop looking at the markets. Go on with your life. There are more important things than trying to squeeze a few more bucks out of a portfolio.

Especially being young, you probably have a substantial need for some stock exposure, at least 30-40%. Perhaps a target date fund or an all-in-one fund like Vanguard's Wellington, Wellesley, or Life Strategy would be appropriate as well.
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Re: How do you fight the urge to micromanage?

Post by TheJoker » Thu Jun 01, 2017 5:11 pm

Only micromanage a small portion of your portfolio, say 10-15%. That satisfies me urge.

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Re: How do you fight the urge to micromanage?

Post by jebmke » Thu Jun 01, 2017 5:12 pm

Find other things to do. Don't waste your life trying to influence things that are beyond your control.
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Re: How do you fight the urge to micromanage?

Post by livesoft » Thu Jun 01, 2017 5:12 pm

Follow your portfolio EVERY day for months and see what happens. You will get used to doing nothing but watching. It's so easy.

You will find out that things you expected to happen, didn't happen. And things you didn't expect to happen, happened.

Then get a pet like a parakeet or dog that you can micromanage.
Last edited by livesoft on Thu Jun 01, 2017 5:14 pm, edited 1 time in total.
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NiceUnparticularMan
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Re: How do you fight the urge to micromanage?

Post by NiceUnparticularMan » Thu Jun 01, 2017 5:14 pm

Don't check your account balances more than annually, for rebalancing purposes.

Or just use a Target or Life Strategy fund and pretty much never check them.

It is frequency of information and decisions which generates anxiety and ultimately maximizes the risk of behavioral mistakes.

Meanwhile, help solve other people's problems on Bogleheads . . . .
Last edited by NiceUnparticularMan on Thu Jun 01, 2017 5:15 pm, edited 2 times in total.

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Re: How do you fight the urge to micromanage?

Post by TheTimeLord » Thu Jun 01, 2017 5:14 pm

The more of a life you have outside your finances the less of an urge you will have to constantly monitor what is going on with your investments. If your account balances are the most important thing in your life stop and think about what that means and if you will ever be able to part with any of your pile no matter how large.
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SinisterMethods
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Re: How do you fight the urge to micromanage?

Post by SinisterMethods » Thu Jun 01, 2017 5:19 pm

TheJoker wrote:Only micromanage a small portion of your portfolio, say 10-15%. That satisfies me urge.

theJokerhttps://www.bogleheads.org/forum/posting.php?f= ... 6067f8b57c#
This might be a good idea for me, for later.

It's the software developer part of me that wants to try and control the output, and I have to get used to just letting the funds ride. But maybe have a very small chunk to actively play with would be a good learning tool.

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Re: How do you fight the urge to micromanage?

Post by Fallible » Thu Jun 01, 2017 5:20 pm

What allocation did you decide on?
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Re: How do you fight the urge to micromanage?

Post by oldzey » Thu Jun 01, 2017 5:25 pm

Speaking for myself, in regards to micromanaging my investments, I've found the expertise on this particular forum to have been the most useful.

For me, it took some experimentation, but I've finally settled on a simple, two-fund portfolio.

Things that help me fight the urge to micromanage my investments are:

1. Having a clear, well-written IPS.
2. Adjusting my AA to a point at which I won't micromanage my portfolio (just rebalance).
3. Reading and rereading What Experts Say About Various Investing Topics.
4. Understanding the order of importance in managing one's financial affairs (note that the top 3 on the list don't pertain directly to investing).
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Re: How do you fight the urge to micromanage?

Post by radiowave » Thu Jun 01, 2017 5:27 pm

livesoft wrote:Follow your portfolio EVERY day for months and see what happens. You will get used to doing nothing but watching. It's so easy.

You will find out that things you expected to happen, didn't happen. And things you didn't expect to happen, happened.

Then get a pet like a parakeet or dog that you can micromanage.
Another pearl of wisdom from livesoft. And I've been doing just that, mostly to assure myself our IPS is right for us and not to worry about the ups and downs - invest for the long haul.

I tried to micro manage our cat . . . doesn't really work :)
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Re: How do you fight the urge to micromanage?

Post by TheTimeLord » Thu Jun 01, 2017 5:28 pm

SinisterMethods wrote:I'm a student going for my tech degree, but I had a bunch of money in the bank that I wanted to put to work.
Here's a thought, do you know how many of the people on this board would give you an 7 or even 8 digit portfolio to be your age again (I assume you are young)? Sure money is important and needs to be well managed but right now you have something people would trade a whole lot of money for, youth, try not to waste it staring at your portfolio balances.
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Re: How do you fight the urge to micromanage?

Post by triceratop » Thu Jun 01, 2017 5:39 pm

The good news is that you are probably investing a small amount of money in your 3-fund portfolio. I say "small"; it is probably large to you, right now, but ultimately small compared to both your lifetime income and retirement assets.

As livesoft said, track your portfolio daily for a while and notice how much it varies, and how little you can predict. But the important thing is that as you continue to contribute, in whatever capacity you can as a student. As your balance grows you will become immune to larger and larger daily/weekly/monthly swings in portfolio value. Example: I started investing with a $3,000 investment in the Vanguard S&P500 index fund (I knew little and the reading I had done indicated this was a good start until I learned more). Now, 3 years later, it is possible (if a little uncommon, but I have seen it) to see a $1,000 drops in portfolio value. The important thing is that you're aware this can occur and that you are comfortable with whatever level of risk you are taking.
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Re: How do you fight the urge to micromanage?

Post by livesoft » Thu Jun 01, 2017 5:42 pm

radiowave wrote:I tried to micro manage our cat . . . doesn't really work :)
Right, that's why I didn't mention your cat.
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Re: How do you fight the urge to micromanage?

Post by NibbanaBanana » Thu Jun 01, 2017 6:11 pm

SinisterMethods wrote:I'm a student going for my tech degree, but I had a bunch of money in the bank that I wanted to put to work.

I will be building a CD ladder soon, but today I dropped about 75 percent of it on a 3 fund portfolio with Vanguard (total US index, total International index, total bond index).

Dropping this much money at once is nerve wracking. I'm not used to it. Should I just avoid checking the market for a few months? All of a sudden I want to micromanage the situation, but I might go crazy if I keep watching the market go up and down. The plan is to just let these funds ride for decades.

I don't know how people in the stock market do it. I've only been researching this subject for a couple of weeks, but there's an urge to try and control the situation and micromanage it. I'm glad I went with total index funds. I would probably lose a lot of money fidgeting with my investments.
The best way I've found to not micromanage is to micromanage for a while. Then, after you've lost some money and learned the hard way that it's insane and counterproductive to micromanage, you'll stop. At least, that's what worked for me. :oops: And read a few of John Bogle's books. :D

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Re: How do you fight the urge to micromanage?

Post by michaeljc70 » Thu Jun 01, 2017 6:12 pm

Experience has taught me to restrain myself. I view myself as very knowledgeable in investing. I have bought a ton of stocks, bonds, funds and options over the years. And I've had some big winners and some big losers. I bought triple financial ETFs during the crisis and Ford and GM bonds for pennies on the dollar and really did well. I've also invested in things I thought were sure to go up, and kept adding to it on the way down only to take a huge loss. What I can say is, that I probably did no better than the market or slightly better than the market but with more risk. Just being invested in my 4 funds on auto pilot gives me great piece of mind.

I can look everyday and not be tempted to make changes. In fact, due to changing brokerages, I recently switched some of my MF shares to ETFs. I find myself sometimes even checking during the day (which obviously you cannot easily do with MF). I find it fun knowing where I am, up or down, and am not tempted to take any action.

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Re: How do you fight the urge to micromanage?

Post by SimpleGift » Thu Jun 01, 2017 6:22 pm

SinisterMethods wrote:Dropping this much money at once is nerve wracking. I'm not used to it. Should I just avoid checking the market for a few months? All of a sudden I want to micromanage the situation, but I might go crazy if I keep watching the market go up and down. The plan is to just let these funds ride for decades.
If your plan is to let your portfolio ride for decades (with occasional rebalancing perhaps), then you really need to convince yourself that the day-to-day gyrations of the market do not concern you. The only price that matters is the price on the day that you sell — decades down the road. Everything else in the interim is inconsequential to your long-term portfolio growth plan.
Cordially, Todd

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Re: How do you fight the urge to micromanage?

Post by Artisan » Thu Jun 01, 2017 7:11 pm

I have found that some are just prone to tinkering. Education helps but some can't seem to avoid touching things better left alone.

I have never agreed with those who say don't look. The ones who can avoid looking probably don't need to and the ones who should can't help but look.

Perhaps just try to convince yourself of the the simple fact that the more you tinker the more damage you will likely do to your returns.

Simplicity works.

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Re: How do you fight the urge to micromanage?

Post by 5th_Dimension » Thu Jun 01, 2017 7:34 pm

livesoft wrote:Follow your portfolio EVERY day for months and see what happens. You will get used to doing nothing but watching. It's so easy.

You will find out that things you expected to happen, didn't happen. And things you didn't expect to happen, happened.
I was in the same situation as you, and this is what I found to be successful for me. I would add another thing that worked for me. Make yourself a spreadsheet to track the daily movements of your portfolio. When you feel the need to micromanage, add something new to your spreadsheet; a new way to break down the data; a new chart or graph, etc. Now after my first several months I have an incredibly complex spreadsheet, and no desire to do anything to my portfolio. I update the prices of my 3 fund portfolio once a day and that is it. :happy

Good luck!
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Re: How do you fight the urge to micromanage?

Post by sport » Thu Jun 01, 2017 7:54 pm

Artisan wrote:... the simple fact that the more you tinker the more damage you will likely do to your returns.
This is the answer to your question.

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Re: How do you fight the urge to micromanage?

Post by SinisterMethods » Thu Jun 01, 2017 8:08 pm

Fallible wrote:What allocation did you decide on?
Vanguard:

~69% in total US Stock index

~24% in total international stock index

~6.8% in total bond index

I'll be putting a bit more later into the bond portion, possibly a CD ladder.

The reason why I didn't do a target date fund was that I felt its international allocation was a bit high. Also because I have a bit more control over the individual sections. It doesn't seem that hard to just mimic the target date fund's glide path as the years go by. The index funds are still rebalanced within themselves.

I will balance percentage allocated as the years go by, and add in new money to fit that glide path.

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Re: How do you fight the urge to micromanage?

Post by BolderBoy » Thu Jun 01, 2017 8:09 pm

livesoft wrote:Then get a pet like a parakeet or dog that you can micromanage.
He should get a cat - they can't be micromanaged either. Good learning experience on how to deal with his investments.
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Re: How do you fight the urge to micromanage?

Post by Fallible » Thu Jun 01, 2017 9:37 pm

SinisterMethods wrote:
Fallible wrote:What allocation did you decide on?
Vanguard:

~69% in total US Stock index

~24% in total international stock index

~6.8% in total bond index

I'll be putting a bit more later into the bond portion, possibly a CD ladder.

The reason why I didn't do a target date fund was that I felt its international allocation was a bit high. Also because I have a bit more control over the individual sections. It doesn't seem that hard to just mimic the target date fund's glide path as the years go by. The index funds are still rebalanced within themselves.

I will balance percentage allocated as the years go by, and add in new money to fit that glide path.
If you don't have an IPS, now's the time. Write down your overall investment plan and goals and include your struggle now with micromanaging and how you can learn to manage it. Here's the wiki's IPS link:
https://www.bogleheads.org/wiki/Investm ... _statement

I don't know how much investing reading you've done or what books, but now's a great time. Here are recommendations from the wiki:
https://www.bogleheads.org/wiki/Books:_ ... nd_reviews

Between the IPS and reading up, hopefully you'll be busy learning instead of tinkering. :-)
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Re: How do you fight the urge to micromanage?

Post by jbranx » Thu Jun 01, 2017 10:00 pm

For a couple decades I had a large, framed "mountain chart" of the S&P 500 going back to inception on the wall above my computer. It reminded me that the market always recovers, even for draconian dips like the Great Depression. Warren Buffet says he re-reads B. Graham's "Intelligent Investor" every year to keep himself refreshed on key investment principles. I find reading a Bogle, Bernstein,Malkiel, Swedroe etc. book occasionally does that for me.

It may not have done much for the drug problem, but N. Reagan's "just say no" might work.

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Re: How do you fight the urge to micromanage?

Post by FrugalInvestor » Thu Jun 01, 2017 10:32 pm

Remember that short-range movements are meaningless and your reactions to them will likely be too late. As a result any 'micromanaging' you do will almost surely be counterproductive.

There are graphs that clearly show the insignificance of short-term market moves within the larger context of long-term (upward) market trends coupled with compounding of gains. Hopefully someone will post one here.

The takeaway is that doing nothing is the best course of action in the long-term. You're young and have the luxury and (huge) benefit of time. Let it be your friend and ignore your investments with the understanding that you'll be very pleased sometime way down the road when it really matters.

As Jack puts it, "don't peek."
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Re: How do you fight the urge to micromanage?

Post by Ozonewanderer » Thu Jun 01, 2017 10:44 pm

A couple of ideas:

-- Take a small amount of your portfolio, say 5%, and invest it as you wish by your own whim or theory. Maybe you will beat the market! Yay! But if the pot goes empty you got to leave the rest of the portfolio alone for a while.

-- What I do when I get the twitch to tinker is rebalance - as frequently as I want in whatever small amounts that might be called for. I think we, as human beings, need to feel some sense of personal control and this helps to provide that outlet without doing any harm.

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Re: How do you fight the urge to micromanage?

Post by rosylenm » Thu Jun 01, 2017 10:57 pm

I'm a tinkerer. And I watch what happens everyday because I am a lookyloo (sp?).

And I have messed up. And I have also made smart choices. And I have an IPS (which I don't adhere too all the time because I am human and emotional and the winds vary and the tides shift and....).You have to find your sweet spot, everyone's is different.

Time is on your side. Mess up, get white hair. You are good. You are here.

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Re: How do you fight the urge to micromanage?

Post by NiceUnparticularMan » Fri Jun 02, 2017 5:39 am

Artisan wrote:I have found that some are just prone to tinkering. Education helps but some can't seem to avoid touching things better left alone.

I have never agreed with those who say don't look. The ones who can avoid looking probably don't need to and the ones who should can't help but look.

Perhaps just try to convince yourself of the the simple fact that the more you tinker the more damage you will likely do to your returns.

Simplicity works.
Yeah, you could argue the "don't look" suggestion is more a self-assessment technique than a mitigation technique. If you find you have to look and it is stressing you out, you have determined you are a typical investor, and you should probably be looking for an all-in-one solution.

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Re: How do you fight the urge to micromanage?

Post by NiceUnparticularMan » Fri Jun 02, 2017 5:50 am

SinisterMethods wrote:The reason why I didn't do a target date fund was that I felt its international allocation was a bit high. Also because I have a bit more control over the individual sections. It doesn't seem that hard to just mimic the target date fund's glide path as the years go by. The index funds are still rebalanced within themselves. I will balance percentage allocated as the years go by, and add in new money to fit that glide path.
So you decided to become what is known in some literature as a HEHR investor (high evaluation with high rebalancing frequency). As you are finding out, most of the time this leads to higher emotional stress. The research also says it makes you more prone to behavioral mistakes. The reason you are giving for being a HEHR investor is you wanted to control your international allocation (that would be part of the HE), but there is no reason to believe your chosen international allocation will outperform the allocation that, say, Vanguard chooses based on its research and modeling.

To be blunt, so far this seems like an obvious mistake to me, and I think it is not too late to reconsider a Target fund. I think it can be an ego thing for some people to accept that, and it can also itself be a kind of behavioral mistake driven by fear of loss (won't I regret not choosing my exact international percentage? so many people at Bogleheads seem to think it really matters . . . .). But I personally think it is actually smart to recognize when it is the right tool for the job, and you have an opportunity here to do something smart that could serve you well for a lifetime of investing.

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Re: How do you fight the urge to micromanage?

Post by Tamarind » Fri Jun 02, 2017 6:15 am

radiowave wrote:
livesoft wrote:Follow your portfolio EVERY day for months and see what happens. You will get used to doing nothing but watching. It's so easy.

You will find out that things you expected to happen, didn't happen. And things you didn't expect to happen, happened.

Then get a pet like a parakeet or dog that you can micromanage.
Another pearl of wisdom from livesoft.
Indeed. Tell yourself you can check as often as you like, but no matter what happens you can only change your plan after an appropriate long period of time.

Also, look at charts of long term performance of the S&P 500. Imagine yourself sitting in the middle of a 30-year chart. Look at how much prices changed over the first 15 years.... And how much more they will change over the next 15 years. And remind yourself that it'll be 30, 40, or 50 years before you are done letting the money you just invested work for you.

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Re: How do you fight the urge to micromanage?

Post by J295 » Fri Jun 02, 2017 6:32 am

Strongly consider adopting an IPS if you don't already have one and commit to following it.

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Re: How do you fight the urge to micromanage?

Post by livesoft » Fri Jun 02, 2017 6:35 am

Turn off automatic dividend reinvestment and micromanage those monthly bond dividends all you want.
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Re: How do you fight the urge to micromanage?

Post by Toons » Fri Jun 02, 2017 6:45 am

"Should I just avoid checking the market for a few months"

Bingo.
Try Once a year.
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Re: How do you fight the urge to micromanage?

Post by Jack FFR1846 » Fri Jun 02, 2017 7:46 am

Fidelity did a study of those in their 401k plans to figure out what type of people did best for return. Those that did the worst were micromanagers who screwed around with their plans all the time. Those who did best were.....well.....dead.

So feel free to micromanage the account but understand that you are actively reducing your return by doing so. You would be far better off to change your password to a series of unrelated characters written on a paper, then burning the paper.
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Re: How do you fight the urge to micromanage?

Post by LeeMKE » Fri Jun 02, 2017 11:40 am

So feel free to micromanage the account but understand that you are actively reducing your return by doing so. You would be far better off to change your password to a series of unrelated characters written on a paper, then burning the paper.
I'm Lee and I'm addicted to tinkering.

I have learned to deal with my problem by keeping my hands busy so I don't mess with my portfolio. I cruise the boards here to help others, and learn about things I haven't dealt with yet. I mess around with tools that get posted here and that I find in articles from legitimate sources ( :happy to WSJ, :shock: to People Magazine). I started a Boglehead chapter in my town (or attend the Boglehead chapter in your town).

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Re: How do you fight the urge to micromanage?

Post by Day9 » Fri Jun 02, 2017 12:05 pm

Tax loss harvesting is an example of potentially good tinkering.
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Re: How do you fight the urge to micromanage?

Post by NiceUnparticularMan » Fri Jun 02, 2017 1:04 pm

Day9 wrote:Tax loss harvesting is an example of potentially good tinkering.
But the expected benefits are small and risky:

https://www.kitces.com/blog/evaluating- ... arvesting/

Given the large risk to tinkering in general, I'd suggest for most people, not being able to TLH is a small and easily-justified price to pay for not tinkering at all.

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Re: How do you fight the urge to micromanage?

Post by jalbert » Fri Jun 02, 2017 2:08 pm

If you invested at Vanguard, have them disable online access to your account, and just look at quarterly ststements they mail to you.
Risk is not a guarantor of return.

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Re: How do you fight the urge to micromanage?

Post by Ozonewanderer » Fri Jun 02, 2017 2:31 pm

jalbert wrote:If you invested at Vanguard, have them disable online access to your account, and just look at quarterly ststements they mail to you.
Seriously, is this possible?

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Re: How do you fight the urge to micromanage?

Post by pkcrafter » Fri Jun 02, 2017 4:49 pm

SinisterMethods, serious question... You have made your choice and now there is nothing more to do for maybe a year. What are you going to micromanage? What is your definition of micromanage, watching your new portfolio, or possibly changing something. What would trigger that?

I wonder if perhaps you've taken on too much risk. That is quite common.


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Re: How do you fight the urge to micromanage?

Post by jebmke » Fri Jun 02, 2017 5:33 pm

Ozonewanderer wrote:
jalbert wrote:If you invested at Vanguard, have them disable online access to your account, and just look at quarterly ststements they mail to you.
Seriously, is this possible?
Of course it is. In fact, you can do it yourself, I think. Just log in several times with the wrong password. Eventually they will lock your account.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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Re: How do you fight the urge to micromanage?

Post by livesoft » Fri Jun 02, 2017 5:35 pm

Here's another tip: You can micromanage the accounts of other people who post at bogleheads.org. It turns out they WANT you to micromanage all their decisions: investments, rebalancing, tax-loss harvesting, asset allocation, trips, jobs, cars, exercise, pets, trees, and oatmeal.
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SinisterMethods
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Re: How do you fight the urge to micromanage?

Post by SinisterMethods » Fri Jun 02, 2017 7:26 pm

pkcrafter wrote:SinisterMethods, serious question... You have made your choice and now there is nothing more to do for maybe a year. What are you going to micromanage? What is your definition of micromanage, watching your new portfolio, or possibly changing something. What would trigger that?

I wonder if perhaps you've taken on too much risk. That is quite common.


Paul
I've only gotten into total market index funds and total bond index funds. There's nothing to micromanage. I'm just new to this investing thing, and I'm an upcoming software developer, so I like to tinker with something until I have control over it. So this watching something for years is a little different than my personality type.

The desire to tinker is fading though. I just focus on other things, and once a day I take a look at the market numbers out of curiosity.

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Ozonewanderer
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Re: How do you fight the urge to micromanage?

Post by Ozonewanderer » Fri Jun 02, 2017 9:36 pm

Paul[/quote]
I've only gotten into total market index funds and total bond index funds. There's nothing to micromanage. I'm just new to this investing thing, and I'm an upcoming software developer, so I like to tinker with something until I have control over it. So this watching something for years is a little different than my personality type.

The desire to tinker is fading though. I just focus on other things, and once a day I take a look at the market numbers out of curiosity.[/quote]

Focus on your biggest asset: your skills and career. These returns are far greater than anything you could gain through investment.

TomCat96
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Re: How do you fight the urge to micromanage?

Post by TomCat96 » Fri Jun 02, 2017 10:30 pm

SinisterMethods wrote:I'm a student going for my tech degree, but I had a bunch of money in the bank that I wanted to put to work.

I will be building a CD ladder soon, but today I dropped about 75 percent of it on a 3 fund portfolio with Vanguard (total US index, total International index, total bond index).

Dropping this much money at once is nerve wracking. I'm not used to it. Should I just avoid checking the market for a few months? All of a sudden I want to micromanage the situation, but I might go crazy if I keep watching the market go up and down. The plan is to just let these funds ride for decades.

I don't know how people in the stock market do it. I've only been researching this subject for a couple of weeks, but there's an urge to try and control the situation and micromanage it. I'm glad I went with total index funds. I would probably lose a lot of money fidgeting with my investments.

It gets easier over time. I'm 100% stocks, not counting my emergency fund.
When stocks go up, I'm happy theres a bigger number to look at. But at the same time I realize that mathematically, I would actually be in the best position if stocks were to crash today allowing me to dollar cost average into lower prices for years to come.

In fact, supposing the market were to return 8% a year compounded, the best world scenario for me, mathematically, would be if the market were to tank into oblivion, stay there for the next 29 years, and then shoot up 1.08^30 at year 30.

The worst case scenario would be if the market were to shoot up 1.08^30 tomorrow and remain flat for the next 30.

At this point, day to day, I'm neutral. I just don't care. The mathematical superiority of dollar cost averaging in depressed markets is a great emotional counter to the emotional high of seeing a larger number in my portfolio temporarily.

snarlyjack
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Re: How do you fight the urge to micromanage?

Post by snarlyjack » Fri Jun 02, 2017 11:03 pm

Sinister,

Read this article "Toughen Up Cupcake" it's excellent...

http://jlcollinsnh.com/2012/04/15/stock ... -save-you/

The Wizard
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Re: How do you fight the urge to micromanage?

Post by The Wizard » Sat Jun 03, 2017 1:14 am

I follow the markets all the time, the s&p 500, etc.
I check my personal account balances a few times a week but seldom DO anything.
It does look like US markets peaked again yesterday so when I get back to the US in a few days, I'll see if it makes sense to rebalance a percent or two out of stocks.

So, it's good to be aware of what's going on, but seldom is there a need to do anything...
Attempted new signature...

SGM
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Re: How do you fight the urge to micromanage?

Post by SGM » Sat Jun 03, 2017 2:13 am

Tinkering with your portfolio gives you the illusion that you have some control over outcomes. You do not have control over the outcomes. Markets moves are random. Reinvest dividends and invest on a regular basis regardless of market valuations. Low market valuations are your friend when you are far from retirement. The most important thing is to stay invested and do not pull money out of the market because it has gone down.

Learn to do nothing. Effort does not produce better than market returns most of the time and may worsen our returns. If you want to try to tinker do it with a limited amount of your assets. Read the BH Guide to Investing.

WildBill
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Re: How do you fight the urge to micromanage?

Post by WildBill » Sat Jun 03, 2017 3:12 am

Howdy

The thing that worked for me was periodic investing and creatively brain washing myself.

Set it up so that you are investing a fixed amount every month from whatever you are earning. Peek as much as you want.

When markets are up, you are happy because you're rich!

When markets are down, you are happy because you are buying assets on sale!

No matter what you're winning!

Rinse and repeat for 30 years and you're rich.

And get a dog. They love being micro-managed.

W B
"Through chances various, through all vicissitudes, we make our way." Virgil, The Aeneid

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oldcomputerguy
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Re: How do you fight the urge to micromanage?

Post by oldcomputerguy » Sat Jun 03, 2017 5:30 am

livesoft wrote:
radiowave wrote:I tried to micro manage our cat . . . doesn't really work :)
Right, that's why I didn't mention your cat.
Micromanaging a cat is like trying to micromanage the stock market. All you can do is feed it and clean up after it. It's gonna do what it's gonna do.
:wink:
It’s taken me a lot of years, but 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.

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