Almost fell off my chair...

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PlayingLife
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Almost fell off my chair...

Post by PlayingLife » Wed Dec 13, 2017 10:55 am

Ever since following the BH way of investing, life has become less stressful. With the "set it and forget it" mentality, I haven't checked my basic VG three fund portfolio in some months. Logged in this morning just to ensure I am hitting my 401k contribution limit with my last check for the year....a >21% return greeted me. Wow, what a crazy year! Immediately thought 2 things.....a) the financial gains are amazing and I appreciate the support this community brings to all who will take an active role b) I never saw the opposite happen and when it does to this extent, I am going to throw up. Even with staying the course ; )

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Sandtrap
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Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Almost fell off my chair...

Post by Sandtrap » Wed Dec 13, 2017 11:00 am

PlayingLife wrote:
Wed Dec 13, 2017 10:55 am
Ever since following the BH way of investing, life has become less stressful. With the "set it and forget it" mentality, I haven't checked my basic VG three fund portfolio in some months. Logged in this morning just to ensure I am hitting my 401k contribution limit with my last check for the year....a >21% return greeted me. Wow, what a crazy year! Immediately thought 2 things.....a) the financial gains are amazing and I appreciate the support this community brings to all who will take an active role b) I never saw the opposite happen and when it does to this extent, I am going to throw up. Even with staying the course ; )
what allocation yielded that wonderful return?
j :D

an_asker
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Re: Almost fell off my chair...

Post by an_asker » Wed Dec 13, 2017 11:03 am

PlayingLife wrote:
Wed Dec 13, 2017 10:55 am
Ever since following the BH way of investing, life has become less stressful. With the "set it and forget it" mentality, I haven't checked my basic VG three fund portfolio in some months. Logged in this morning just to ensure I am hitting my 401k contribution limit with my last check for the year....a >21% return greeted me. Wow, what a crazy year! Immediately thought 2 things.....a) the financial gains are amazing and I appreciate the support this community brings to all who will take an active role b) I never saw the opposite happen and when it does to this extent, I am going to throw up. Even with staying the course ; )
Now, if you'd purchased a bitcoin - one measly bitcoin - a year ago and forgotten about it, you might have jumped off the chair and hit the ceiling! :oops:

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DaftInvestor
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Re: Almost fell off my chair...

Post by DaftInvestor » Wed Dec 13, 2017 11:04 am

Congratulations.
If you hear about a market crash in the news at some point in the coming weeks/months/years - the best thing for you to do might be not to log in and look until things are on the way to recovery :)

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David Jay
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Re: Almost fell off my chair...

Post by David Jay » Wed Dec 13, 2017 11:17 am

DaftInvestor wrote:
Wed Dec 13, 2017 11:04 am
Congratulations.
If you hear about a market crash in the news at some point in the coming weeks/months/years - the best thing for you to do might be not to log in and look until things are on the way to recovery :)
So true - in 2008 I stopped opening my quarterly 401K statements. I knew the market was down, I didn't need to know how much.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

quantAndHold
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Re: Almost fell off my chair...

Post by quantAndHold » Wed Dec 13, 2017 11:24 am

PlayingLife wrote:
Wed Dec 13, 2017 10:55 am
Ever since following the BH way of investing, life has become less stressful. With the "set it and forget it" mentality, I haven't checked my basic VG three fund portfolio in some months. Logged in this morning just to ensure I am hitting my 401k contribution limit with my last check for the year....a >21% return greeted me. Wow, what a crazy year! Immediately thought 2 things.....a) the financial gains are amazing and I appreciate the support this community brings to all who will take an active role b) I never saw the opposite happen and when it does to this extent, I am going to throw up. Even with staying the course ; )
Reminds me of 2008. I was busy working and only paying attention to the market in a fairly vague sense. I knew the market was down, but didn’t know how much, or how that had affected my own account. Sometime towards the end of the year I checked my account and ran a retirement planner. “O. M. G...If I ever want retire, I need to save more. A lot more!” So I maxed out everything. 401k. IRA. Wife’s 401k and IRA. Taxable. Everything. Exactly when the market was reaching its bottom.

And then rode the 2009 recovery right up...best lucky decision I ever made.

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Watty
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Re: Almost fell off my chair...

Post by Watty » Wed Dec 13, 2017 11:26 am

Even if you might not like what you see reviewing your statements is important since you only have a limited time to correct any problems.

I am not sure about mutual funds but with a bank if you don't report an error, or an unauthorized withdrawal, in 30 to 90 days the bank may not be required to correct it.

obgraham
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Re: Almost fell off my chair...

Post by obgraham » Wed Dec 13, 2017 11:31 am

I think we are most all in the same boat. We have to remain focused on the long term goal. We can gloat when things are going up -- that's exciting. But there WILL be a decline. It takes strong will to sit through that, but that's what is required.

Buying when things are up and selling when things are down is a sure recipe for disaster.

mortfree
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Re: Almost fell off my chair...

Post by mortfree » Wed Dec 13, 2017 11:34 am

David Jay wrote:
Wed Dec 13, 2017 11:17 am
DaftInvestor wrote:
Wed Dec 13, 2017 11:04 am
Congratulations.
If you hear about a market crash in the news at some point in the coming weeks/months/years - the best thing for you to do might be not to log in and look until things are on the way to recovery :)
So true - in 2008 I stopped opening my quarterly 401K statements. I knew the market was down, I didn't need to know how much.
I actually saved my 401k statement from 2008 as a reminder. I finally threw it out a few weeks ago, before I moved.

Broken Man 1999
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Re: Almost fell off my chair...

Post by Broken Man 1999 » Wed Dec 13, 2017 12:37 pm

Watty wrote:
Wed Dec 13, 2017 11:26 am
Even if you might not like what you see reviewing your statements is important since you only have a limited time to correct any problems.

I am not sure about mutual funds but with a bank if you don't report an error, or an unauthorized withdrawal, in 30 to 90 days the bank may not be required to correct it.
I know about the "no peeking" idea here on this forum, but I could not imagine not checking ANY financial account for extended periods of time. Doesn't seem attractive to me. I do not check my balances for trading opportunities, I just want to make sure our investments are safe at home, where they belong, instead of leaving with someone of the criminal class.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

technovelist
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Re: Almost fell off my chair...

Post by technovelist » Wed Dec 13, 2017 1:32 pm

Broken Man 1999 wrote:
Wed Dec 13, 2017 12:37 pm
Watty wrote:
Wed Dec 13, 2017 11:26 am
Even if you might not like what you see reviewing your statements is important since you only have a limited time to correct any problems.

I am not sure about mutual funds but with a bank if you don't report an error, or an unauthorized withdrawal, in 30 to 90 days the bank may not be required to correct it.
I know about the "no peeking" idea here on this forum, but I could not imagine not checking ANY financial account for extended periods of time. Doesn't seem attractive to me. I do not check my balances for trading opportunities, I just want to make sure our investments are safe at home, where they belong, instead of leaving with someone of the criminal class.

Broken Man 1999
+1
In theory, theory and practice are identical. In practice, they often differ.

Fallible
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Re: Almost fell off my chair...

Post by Fallible » Wed Dec 13, 2017 3:16 pm

PlayingLife wrote:
Wed Dec 13, 2017 10:55 am
... b) I never saw the opposite happen and when it does to this extent, I am going to throw up. Even with staying the course ; )
Nobody said staying the course was easy. So just make sure your asset allocation reflects that.
Bogleheads® wiki | Investing Advice Inspired by Jack Bogle

PlayingLife
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Re: Almost fell off my chair...

Post by PlayingLife » Thu Dec 14, 2017 7:58 am

Sandtrap wrote:
Wed Dec 13, 2017 11:00 am
PlayingLife wrote:
Wed Dec 13, 2017 10:55 am
Ever since following the BH way of investing, life has become less stressful. With the "set it and forget it" mentality, I haven't checked my basic VG three fund portfolio in some months. Logged in this morning just to ensure I am hitting my 401k contribution limit with my last check for the year....a >21% return greeted me. Wow, what a crazy year! Immediately thought 2 things.....a) the financial gains are amazing and I appreciate the support this community brings to all who will take an active role b) I never saw the opposite happen and when it does to this extent, I am going to throw up. Even with staying the course ; )
what allocation yielded that wonderful return?
j :D
Okay I wasn't completely truthful here, but the point of my message stands. In my work 401K, I have 100% allocated to VFIAX Total 500, which yielded the 21%. In an IRA, I have VBILX Intermediate Term Bond and VTIAX Vanguard Total Int, which yielded 8.1% (bringing down my total average gain). The bond fund is 7.3% of my total portfolio and the int is 14.59%. In January I will likely rebalance to 10% bond and 10% international. Or, I may change my IRA to 5% bond + 10% int + 5% VFIAX Total 500. 34 years old so hopefully time is on my side.

PlayingLife
Posts: 327
Joined: Sun Dec 29, 2013 3:10 pm

Re: Almost fell off my chair...

Post by PlayingLife » Thu Dec 14, 2017 8:01 am

David Jay wrote:
Wed Dec 13, 2017 11:17 am
DaftInvestor wrote:
Wed Dec 13, 2017 11:04 am
Congratulations.
If you hear about a market crash in the news at some point in the coming weeks/months/years - the best thing for you to do might be not to log in and look until things are on the way to recovery :)
So true - in 2008 I stopped opening my quarterly 401K statements. I knew the market was down, I didn't need to know how much.
+1

GLState
Posts: 141
Joined: Wed Feb 15, 2017 10:38 am

Re: Almost fell off my chair...

Post by GLState » Thu Dec 14, 2017 8:58 am

PlayingLife wrote:
Thu Dec 14, 2017 7:58 am
Sandtrap wrote:
Wed Dec 13, 2017 11:00 am
PlayingLife wrote:
Wed Dec 13, 2017 10:55 am
Ever since following the BH way of investing, life has become less stressful. With the "set it and forget it" mentality, I haven't checked my basic VG three fund portfolio in some months. Logged in this morning just to ensure I am hitting my 401k contribution limit with my last check for the year....a >21% return greeted me. Wow, what a crazy year! Immediately thought 2 things.....a) the financial gains are amazing and I appreciate the support this community brings to all who will take an active role b) I never saw the opposite happen and when it does to this extent, I am going to throw up. Even with staying the course ; )
what allocation yielded that wonderful return?
j :D
Okay I wasn't completely truthful here, but the point of my message stands. In my work 401K, I have 100% allocated to VFIAX Total 500, which yielded the 21%. In an IRA, I have VBILX Intermediate Term Bond and VTIAX Vanguard Total Int, which yielded 8.1% (bringing down my total average gain). The bond fund is 7.3% of my total portfolio and the int is 14.59%. In January I will likely rebalance to 10% bond and 10% international. Or, I may change my IRA to 5% bond + 10% int + 5% VFIAX Total 500. 34 years old so hopefully time is on my side.
You might want to look at your portfolio as a whole, rather than individual funds. Your 401k with 100% S&P 500 (VFIAX), will likely fall more than your IRA if we experience a downturn in the market. YTD and for the past 1 year, the Vanguard Total International (VTIAX) has outperformed the S&P 500 (VFIAX) by 4 to 5%, yet you don't mention the outperfomance because it is combined with Total Bond fund in your IRA. Total International is the "star" of your portfolio, not the S&P 500 fund.

Also, you shouldn't be altering your allocations based on the recent performance of the equity funds. After the equity return of the past year, your bond fund should be at smaller allocation than you originally intended. You should rebalance from equity to Total Bond. Stick with your plan in good times and bad.

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Sandtrap
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Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Almost fell off my chair...

Post by Sandtrap » Thu Dec 14, 2017 11:46 am

PlayingLife wrote:
Thu Dec 14, 2017 7:58 am
Sandtrap wrote:
Wed Dec 13, 2017 11:00 am
PlayingLife wrote:
Wed Dec 13, 2017 10:55 am
Ever since following the BH way of investing, life has become less stressful. With the "set it and forget it" mentality, I haven't checked my basic VG three fund portfolio in some months. Logged in this morning just to ensure I am hitting my 401k contribution limit with my last check for the year....a >21% return greeted me. Wow, what a crazy year! Immediately thought 2 things.....a) the financial gains are amazing and I appreciate the support this community brings to all who will take an active role b) I never saw the opposite happen and when it does to this extent, I am going to throw up. Even with staying the course ; )
what allocation yielded that wonderful return?
j :D
Okay I wasn't completely truthful here, but the point of my message stands. In my work 401K, I have 100% allocated to VFIAX Total 500, which yielded the 21%. In an IRA, I have VBILX Intermediate Term Bond and VTIAX Vanguard Total Int, which yielded 8.1% (bringing down my total average gain). The bond fund is 7.3% of my total portfolio and the int is 14.59%. In January I will likely rebalance to 10% bond and 10% international. Or, I may change my IRA to 5% bond + 10% int + 5% VFIAX Total 500. 34 years old so hopefully time is on my side.
Aha! :D
Looking good.

Thesaints
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Re: Almost fell off my chair...

Post by Thesaints » Thu Dec 14, 2017 12:23 pm

If you had simply replicated the world's stock market capitalization, instead of taking a bet on the US large cap market, your return would have been even higher.

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