What have you learned from this situation that you will take action on?

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corp_sharecropper
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What have you learned from this situation that you will take action on?

Post by corp_sharecropper » Mon Mar 23, 2020 10:11 am

I feel like nearly everyone except maybe the most ultimately financially secure people have learned something about themselves, their financial circumstances, or their outlook due to the unusual nature of the present crisis. I certainly have.

I have learned that the urge to optimize every last penny to be invested needs to be resisted. EF cash is boring, but it is no joke, and very few people (I'm talking bogleheads) truly have enough to feel truly at peace.. I know I don't, I fully intend to rectify this to the best of my abilities, even at the expense of long term retirement savings, until I'm at 1.5-2yrs of expenses... So I have a ways to go. This annoys me, as it means I can't aggressively jump into the market at these levels, but if I don't do it this will keep happening every "crisis".

I will likely keep contributing to get my 401k match, and also allocate the initial EF savings to Roth IRAs and HSAs, although drawing on those would be emotionally painful. I'm convinced that my end goal needs to be EF money in non-retirement accounts, but I'm going to have to, at least initially, use that tax advantaged space so as to not lose it.

I know that my current outlook and ability to be a cold calculating investor, would be VASTLY improved with a large, liquid, FDIC insured EF fund sitting in my war chest. My job hasn't been impacted, yet, and has no obvious direct or first order indirect exposure to this crisis, but I'm sure business will somehow be impacted (even a chance it is positively impacted) but it's no doctor level job security and the next crisis will undoubtedly be different.

This has been my main takeaway lesson, thus far.

michaeljc70
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Re: What have you learned from this situation that you will take action on?

Post by michaeljc70 » Mon Mar 23, 2020 10:21 am

Keep at least 3 weeks of toilet paper in the house. :shock:

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BogleFanGal
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Re: What have you learned from this situation that you will take action on?

Post by BogleFanGal » Mon Mar 23, 2020 11:02 am

What I learned from the 2020 crash:
To tune out BH equity cowboys and their derogatory posts when the next bull eventually returns. Seeing so many of these posts the past few years about how a sizable bonds/cash AA was a poor decision made me constantly question if I was too conservative. I'm a wishy washy 50/50: just couldn't commit to either direction, so split the difference.

What I learned from the 08 crash:
That I wasn't gutsy enough to rebalance back into equities all the way down to the bottom. But I didn't panic and sell existing shares either (despite huge loss of client income as a freelancer.) Even then, I had an conservative AA age-wise. I learned I need to feel safe. It costs me some growth and yield in good times, but stops me from doing stupid things.

What I learned then is what many will now: the answer to the magic question: "what will you REALLY feel and do during a crash....vs what you THOUGHT you'd feel and do when markets were good?"

(And yes...I actually had 4-6 weeks of TP in the house before the crash: just random timing due to a recent supermarket BOGO sale. I only wish I had that kind of timing in the real market!)
Last edited by BogleFanGal on Mon Mar 23, 2020 11:25 am, edited 2 times in total.
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Re: What have you learned from this situation that you will take action on?

Post by papito23 » Mon Mar 23, 2020 11:14 am

What I have learned from this crash is that increased wealth is not sufficient for mental peace.

I'm watching a family member in the top 2% of U.S. households by wealth get pretty unnerved. Others with almost no wealth sleeping fine.

I will take action on a plan to be responsible for my own mental health & wellness, one that is as resilient as possible to financial shocks.

Thinking of Naval (angel investor): "A fit body, a calm mind, a house full of love. These things cannot be bought - they must be earned."
A thing is right when it tends to preserve the integrity, stability, and beauty of the biotic community. It is wrong when it tends otherwise. -Aldo Leopold's Golden Rule of Ecology

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Re: What have you learned from this situation that you will take action on?

Post by simplesimon » Mon Mar 23, 2020 11:24 am

EF's feel too large during good times and too small during bad times. Stick with a plan.

Growing your EF during bad times and shrinking it during good times is exactly buy high sell low.

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David Jay
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Re: What have you learned from this situation that you will take action on?

Post by David Jay » Mon Mar 23, 2020 11:29 am

As a new retiree, I was feeling like I was losing gains on the 5 years of living expenses in MM and Bonds. Now I feel secure in the knowledge that I do not need to touch those depressed equities, even if it takes two or three years to recover.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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Re: What have you learned from this situation that you will take action on?

Post by frugalmama » Mon Mar 23, 2020 12:06 pm

Stay the course, buying as I had planned to buy.

I plan on beefing up my emergency fund...I could see this lasting longer than what I feel I have an emergency fund for and this could become the new normal with multiple waves. My EF isn't set for that magnitude right now, so I'm looking to aim at more like 18 months.

I am actually increasing my regular grocery stock (I previously kept quite a bit on hand, and no, I'm not hoarding and I have not purchased any toilet paper), but with feeding 13 people, the limits on things like toilet paper and other staples that stores are setting will eventually cause me a problem, so I'm planning what I need further in advance rather than waiting as long to restock as I think people will continue to panic for a while and I don't see this problem going away any time soon. I'm also being more deliberate in my food prep to make sure we are not wasting by letting things expire etc.

I am cutting non-necessary things in our life as we have had a reduction in our income by quite a bit and I need to make sure we can still live within our means.

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Re: What have you learned from this situation that you will take action on?

Post by Triple digit golfer » Mon Mar 23, 2020 12:13 pm

My lesson learned is the same as the OP.

I will be maxing out retirement accounts, but no additional taxable investing. I don't want to lose tax-advantaged space. I do have 2 years of expenses in taxable equities already, which I would sell for cash and then simultaneously exchange bonds for equities in tax-advantaged accounts. So I do have an emergency plan, but not a dedicated cash savings. That's what I want. Cash in taxable.

If I didn't have anything outside of retirement accounts, I would stop contributing anything over the employer match and begin beefing up my taxable savings immediately.

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Re: What have you learned from this situation that you will take action on?

Post by GibsonL6s » Mon Mar 23, 2020 12:28 pm

A few things, I am 56 BTW.

At about 55/45, I may have been actually too aggressive, as I could have made an argument that maybe I didn't win the game, but I may have had enough to say I could not loose it.

For me going forward, with interest rates this low and bond funds acting as not quite the buffer some of us thought, for me I will simplify and now my FI will consist of individual treasury issues to durations I pick that will serve as my EF and FI. So effectively I will be in only one "risk" class of assets, equities.

Don't ever buy leveraged ETFs. I had a small fun money account where I dabbled with less than 1% of my NW in a leveraged RE ETF and got obliterated. Things were so crazy at work I didn't see it happening and it is almost a total loss. Since it is leveraged there is nothing to hold and hope it comes back like with an ETF.

Simplicity is key, when things like this virus go down, having a simple portfolio with readily available TLH partners and a comfortable emergency fund are key.

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Re: What have you learned from this situation that you will take action on?

Post by winterfan » Mon Mar 23, 2020 12:52 pm

We had money in our taxable account that was only invested into the S&P index. I kind of wish we had taken a little off the table, but I didn't want to pay large cap gains, because we have to pay another large cap gain tax bill this quarter. DH is still employed, so for now, we will just stockpile a little more cash from his paycheck in case we need it.

Otherwise, I think we made some good moves in 2018. We went from 100% stock to a targeted 65/35 (I just checked our balances and we are now about 50/50 give or take). DH turns 59.5 this year too, so we can access the bond part of his portfolio in case he loses his job.

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Re: What have you learned from this situation that you will take action on?

Post by FL370 » Mon Mar 23, 2020 12:58 pm

Been too aggressive paying off low interest debt at the expense of a flush EF. Kept telling myself "I don't need NINE months, I can get by with 6." "I don't need SIX months, I can get by with 3." "I’ll get the debt paid off then rebuild the EF."

Now I’m aggressively rebuilding the EF in case I lose my job this summer. Would rather have the cash than a lower loan balance right now. I also created an account that I won't see in my aggregator. Build it up, then let don't let myself see it so I won't be tempted to tap it.

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Re: What have you learned from this situation that you will take action on?

Post by kingsnake » Mon Mar 23, 2020 1:05 pm

I learned that it's good to have tax loss partners set up. Today I went from FTSE All World Ex US to Total International to capture a chunk of long term capital losses.

I learned that I should have an EF of 6-12 months of expense at all times.

I learned that a lot of people on this forum are uncomfortable with their AAs when stuff hits the fan.

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9-5 Suited
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Re: What have you learned from this situation that you will take action on?

Post by 9-5 Suited » Mon Mar 23, 2020 1:07 pm

I suppose the most obvious one, that risk of equities and the additional risk of small value equities don't appear as modest variance/fluctuation in daily value. They can appear as gut punching destruction of your wealth.

Fortunately I was reasonably well prepared for this and have rebalanced and reloaded to maintain an 80/20 allocation. But I'd be lying if I said I was doing that without any worry whatsoever.

In the future, that will cause me to follow my IPS glidepath more carefully, as I don't want to hang on to a higher equity allocation any longer than I need to. If my wealth were 2x its current level when this happened and I had been 80/20, that would have been excruciating.

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Re: What have you learned from this situation that you will take action on?

Post by 9-5 Suited » Mon Mar 23, 2020 1:11 pm

simplesimon wrote:
Mon Mar 23, 2020 11:24 am
EF's feel too large during good times and too small during bad times. Stick with a plan.

Growing your EF during bad times and shrinking it during good times is exactly buy high sell low.
Generally very true, though depends a little on how you do it. For example, I am growing my EF by re-directing excess mortgage pre-payments to a savings account temporarily. That's only costing me the interest spread between 1.70% and 2.99%. All funds going to stocks are being directed as usual.

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Re: What have you learned from this situation that you will take action on?

Post by steve roy » Mon Mar 23, 2020 1:24 pm

We were at 28/72 when the Good Times began rolling several weeks ago. Now we're down from THAT. (Weve got too many municipal bonds, but oh well.)

The plan, when all the dust settles, is to shift to 40/60, simplify with asset allocation funds, and look at day-to-day returns as little as Possible.

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Re: What have you learned from this situation that you will take action on?

Post by sfmurph » Mon Mar 23, 2020 1:31 pm

I'm happy with my decision to use just Treasury ETFs for my bond side. On the other hard, I'd read not to "bucket" investments. Now I understand what that's about! Due to bucketing, I was lighter on bonds than I thought. However, moving to bonds today seems like a mistake, but I'll be gradually ramping into bonds, buying any dips!

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Re: What have you learned from this situation that you will take action on?

Post by cherijoh » Mon Mar 23, 2020 2:32 pm

corp_sharecropper wrote:
Mon Mar 23, 2020 10:11 am
I have learned that the urge to optimize every last penny to be invested needs to be resisted. EF cash is boring, but it is no joke, and very few people (I'm talking bogleheads) truly have enough to feel truly at peace.. I know I don't, I fully intend to rectify this to the best of my abilities, even at the expense of long term retirement savings, until I'm at 1.5-2yrs of expenses... So I have a ways to go. This annoys me, as it means I can't aggressively jump into the market at these levels, but if I don't do it this will keep happening every "crisis".
It's great that you are taking this opportunity to be introspective and think about changes you can make for the future.

When I was working I kept close to a year's regular expenses in my EF, but I also knew that quite a bit of my regular expenses were discretionary - going away for the weekend, planning a "big" vacation, going out to dinner or a play with friends, etc. Plus, while I had to eat, there was definitely slack in my grocery budget - I could still eat nutriously for a lot less $$. In other words, if it came to a job loss I knew I could stretch my EF a lot further. So as you are evaluating how much to keep in your EF also keep in mind which expenses you can shed if you need to and be prepared to do so fairly quickly.

If you have a family, enlist their cooperation and participation if you plan to trim expenses. I have casual friends/neighbors who didn't want their kids impacted during the 2008 recession when the higher wage earner lost his job, so they were IMO slow to slash their expenses. They assumed that because they had always been able to find new jobs quickly in the past, that it was a "temporary setback" and that it wasn't necessary to go into austerity mode - until they had already burned through a big chuck of their savings.

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Re: What have you learned from this situation that you will take action on?

Post by iasw » Mon Mar 23, 2020 3:03 pm

I have learned that my "sleep better at night" emergency fund needs to be higher, preferably closer to 12m of expenses. The stock market tanking is one thing, but we're bracing for loss of income, too, and a greater emergency fund would be my preference.

I still am comfortable with rebalancing my retirement portfolio.

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Re: What have you learned from this situation that you will take action on?

Post by nesdog » Mon Mar 23, 2020 4:57 pm

I've been berating myself for months for having 'too much' (25%) in cash and a very conservative 25% in equities, 50% bond allocation. We just retired last June and this is our sleep well at night strategy.

In 2008, I moved money at the bottom and didn't hold the course. This time, I've left it alone as we can weather the storm as per our plan.

The only action I may need to take is place maturing T-bills into high yield savings.

We've lost a ton on paper, but as a percentage we are doing okay. I'm grateful to the BH community for laying out the groundwork for our finances so we understood what to do.
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Re: What have you learned from this situation that you will take action on?

Post by watchnerd » Mon Mar 23, 2020 5:11 pm

I've learned 5 years of "emergency strategy" money and paid off house and paid off cars is pretty comforting.
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Re: What have you learned from this situation that you will take action on?

Post by lws » Mon Mar 23, 2020 6:01 pm

The advice of maintaining an earthquake emergency preparedness kit in SoCal was good advice.

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Re: What have you learned from this situation that you will take action on?

Post by hoffse » Mon Mar 23, 2020 6:15 pm

I have learned that I need some material things to feel secure: plenty of shelf stable food in the pantry, a deep freezer, a thermometer that works, backup bottles of medicine and toiletry products, and lots of extra paper and paint to entertain my toddler. I don’t need extra money to feel secure.

Instead of saving cash, we are about to spend a hefty chunk of change to trick out our back yard with a play set. I have learned that we can manage just fine at home for extended periods of time, except that my 2 year old wants to go to a playground and can’t right now. We are going to install it under a patio so he can play with it in the rain and also when it’s very hot in summer. I learned we should have done this a year ago instead of hemming and hawing about the expense.

As for money? We always keep some in cash, and we are ok. We are all equity in investments, and it’s been really interesting to watch the slide. I’ve become pretty desensitized to it, but I’m not worried about it. Health and physical security first, money second.

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Re: What have you learned from this situation that you will take action on?

Post by TravelforFun » Mon Mar 23, 2020 6:38 pm

David Jay wrote:
Mon Mar 23, 2020 11:29 am
As a new retiree, I was feeling like I was losing gains on the 5 years of living expenses in MM and Bonds. Now I feel secure in the knowledge that I do not need to touch those depressed equities, even if it takes two or three years to recover.
The longest recovery is 61 months. Who know how long this recovery will be but as a new retiree like yourself, I'm glad I have enough MM and bonds to last me through a long recovery.

TravelforFun

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Re: What have you learned from this situation that you will take action on?

Post by RetiredCSProf » Mon Mar 23, 2020 8:06 pm

From an investing perspective, I have learned that I paid too little attention to the portion of my bonds invested in corporate. In my Fido account, I invested in the "short-term" bond fund, Thompson (THOPX). In TRowe, I invested in Short-Term Bond Fund (PRWBX). They are not equivalent. THOPX has behaved more like an aggregate bond fund than short-term.

Performance of these funds in my accounts between Feb 20, 2020 and March 20, 2020
THOPX: -9.08%
PRWBX: -3.20%

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Re: What have you learned from this situation that you will take action on?

Post by Noobvestor » Mon Mar 23, 2020 8:23 pm

I learned that tracking error is real! My huge small/value tilt makes me restless, but it is what it is - I'm not jumping ship now. Current plan: if/when it catches back up I'll probably scale back the tilt, but I refuse to lock in losses. Have been biting the bullet and rebalancing as planned.

I also find that even though it's been underperforming for years, I have no such regrets about international and my emerging markets tilt. My convictions about global diversification are remarkably unshaken, just feeling a bit more doubt about factor diversification.

Less actionable, but nice: turns out keeping my bonds in 'safe' places like Treasuries, TIPS, I and EE bonds feels really good when stocks are crashing - glad I went for the 'pure safety' FI play rather than something like Total Bond. Also glad I moved out of munis years ago.
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Re: What have you learned from this situation that you will take action on?

Post by sjl333 » Mon Mar 23, 2020 8:37 pm

The importance of an EF (had 6 months, but feel much safer with 12)

How fast and unexpectedly things can go south

The importance of continuous learning and being the best at what you do - makes you less proned in being the person who gets laid off

How important it is to be out of debt and not to take on debt (I was debating on buying a model 3 fully loaded and was thinking of taking out a loan for that car, but now im very glad i didn't). I have realized now that if I ever want a luxury car, I will need 100% cash to get the car, no debt.

Not overextending yourself or being over-leveraged on things - such as a house

I thank God I read bogleheads everyday and have listened to the wise principles set forth by many of you.

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Re: What have you learned from this situation that you will take action on?

Post by watchnerd » Mon Mar 23, 2020 8:40 pm

Absolutely most important thing I've learned that I will take action on:

Pancetta is in short supply under lockdown.

But you can still make spaghetti carbonara using:

SPAM
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Re: What have you learned from this situation that you will take action on?

Post by Normchad » Mon Mar 23, 2020 8:42 pm

51 years old here, and haven’t learned much. I guess I learned that what I had been doing all along, was 100% correct for me.

Although I am a boglehead, I had settled on the basic concepts and frameworks of thinking before I ever found this site. This site has done a great job reinforcing what I already believed, which has in itself been valuable to me.

I don’t feel good about what is happening, but I don’t feel bad either about my finances during this time. I’m confident it will come back, but honestly I’m mostly indifferent about the financial impact to me. And I consider that apathy to be a good sign that I’m at my personal balance point.

Here’s what I’ve done in the past that has led me to this mental state.
1) I’ve only ever bought individual stocks a few times in my life
2) I was basically 100% equities until the age of 45. Then I started buying bond funds, against the advice of many. I’m glad I got in the habit of buying bonds.
3) I paid off my house 4 years ago despite a low interest rate. Again, this is not universally popular but I like the peace of mind
4) I’ve always lived below my means. So I don’t have a need right now for tons of cash flow.
5) I’ve convinced myself that it’s never different. And whatever calamity comes my way, I won’t change what I’m doing.
6) I might be a turbo idiot, only time will tell.
7) all of this reaffirms my belief, that the long time bell weathers of this board are right about almost everything finance related. If you follow the advice of nisi, Rick, Larry, sscritic, livesoft, and Mel, the results will be stellar. There will always be somebody telling you that you could do better. Ignore those people.

Above all, everybody should take the time to think these things through, think hard about them and really endeavor to understand why they are correct in the aggregate. It has brought me great tranquility in uncertain times.

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Re: What have you learned from this situation that you will take action on?

Post by FRT15 » Mon Mar 23, 2020 9:02 pm

Disposable income doesn't do much when your freedoms to do things goes away.

Muni bonds fall victim to heavy redemptions/ panic

Markets are only propped up by government intervention.

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Re: What have you learned from this situation that you will take action on?

Post by whodidntante » Mon Mar 23, 2020 9:08 pm

I learned that anchoring is powerful. There may not be a single day during this bear that someone does not come along to tell me how cheap this market is. But the US market was really expensive prior to the oil crash and prior to the pandemic, and earnings have been taken to the woodshed. We don't yet know the damage.

I'm buying stocks with every bit of free cash flow because things might have snapped back in 18 months. But I'm not going to go all in until every last brain cell is screaming "buy!" Given the horrific narrative that will certainly coincide with such truly cheap valuations, putting in those buy orders will feel awful, whodidntante against a world gone mad, if the moment occurs.

I'm not sure I will ride through this with my job intact. It depends a lot on how much the economy tanks from here.

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Re: What have you learned from this situation that you will take action on?

Post by TheTimeLord » Mon Mar 23, 2020 9:08 pm

Have a plan, work the plan. Patience and discipline beats testosterone and bravo.
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Re: What have you learned from this situation that you will take action on?

Post by macheta » Mon Mar 23, 2020 9:08 pm

I've made some difficult decisions over the last six months. Basically, I spent a lot on building my emergency fund.

My friend told me to get out of the stock market in February and I did not listen to him. I keep hearing something in the background telling me to stay the course. Sort of like the "Hold" scene in Braveheart when William Wallace was holding the line.

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Re: What have you learned from this situation that you will take action on?

Post by vasu100 » Mon Mar 23, 2020 9:18 pm

I learned that I should try and understand various types of Bond funds a bit better. I hold some BND and some TIPS - decided I should look into some Treasury

And I learned I am incapable of exercising my RSU if the stock price has dropped by 15% the day the RSU vested (Monday 3/16). Of course today the stock is another 10% lower, so in hindsight I should have sold it immediately as I usually do. Of well. Now I am stuck sitting on the RSU and hoping “my” company will rebound faster than”market”. (Or admitting I was wrong not to sell on 3/16)

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Re: What have you learned from this situation that you will take action on?

Post by Normchad » Mon Mar 23, 2020 9:23 pm

whodidntante wrote:
Mon Mar 23, 2020 9:08 pm


I'm buying stocks with every bit of free cash flow because things might have snapped back in 18 months. But I'm not going to go all in until every last brain cell is screaming "buy!" Given the horrific narrative that will certainly coincide with such truly cheap valuations, putting in those buy orders will feel awful, whodidntante against a world gone mad, if the moment occurs.
To quote famous poker player Phil Ivey. "I like it when I lose so much money I can barely breathe. That’s the feeling that I go for. I’m addicted to that feeling."

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Re: What have you learned from this situation that you will take action on?

Post by watchnerd » Mon Mar 23, 2020 9:24 pm

whodidntante wrote:
Mon Mar 23, 2020 9:08 pm

I'm buying stocks with every bit of free cash flow because things might have snapped back in 18 months. But I'm not going to go all in until every last brain cell is screaming "buy!" Given the horrific narrative that will certainly coincide with such truly cheap valuations, putting in those buy orders will feel awful, whodidntante against a world gone mad, if the moment occurs.
Our IPS allows for "unnatural acts" at -70%.
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Re: What have you learned from this situation that you will take action on?

Post by Brianmcg321 » Mon Mar 23, 2020 9:49 pm

I learned I really, really love long term treasuries.

At the beginning of the year I changed my portfolio from 100% stock to 60/40. With 30% of the bonds in LTT. That has made a huge difference in this downturn this year.

When I retire I will take Bernstein's advice and quit playing.
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Re: What have you learned from this situation that you will take action on?

Post by lgs88 » Mon Mar 23, 2020 9:58 pm

1. Don’t reach for yield. Plain old Treasuries will do just fine.

2. There’s a big difference between imagining the crash and experiencing the crash.

3. DCA’ing might be financially sub-optimal, probability-wise, but it’s psychologically more manageable than investing your lump sum at the wrong moment. Take it from the guy who lump-summed 7 figures into the market on February 18th.
merely an interested amateur

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Re: What have you learned from this situation that you will take action on?

Post by watchnerd » Mon Mar 23, 2020 10:01 pm

Brianmcg321 wrote:
Mon Mar 23, 2020 9:49 pm
I learned I really, really love long term treasuries.

At the beginning of the year I changed my portfolio from 100% stock to 60/40. With 30% of the bonds in LTT. That has made a huge difference in this downturn this year.

When I retire I will take Bernstein's advice and quit playing.
They're pretty awesome for this kind of situation.

But I only hold 15% (total port, 50% of bonds) because of their downsides in rising rates and lack of inflation protection.
70% Global Market Weight Equities | 15% Long Treasuries 15% short TIPS & cash || RSU + ESPP

nolapepper
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Re: What have you learned from this situation that you will take action on?

Post by nolapepper » Mon Mar 23, 2020 10:22 pm

lesson learned:
1. Read bogleheads everyday and be informed
2. Have some bonds
3. save some cash

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WoodSpinner
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Re: What have you learned from this situation that you will take action on?

Post by WoodSpinner » Mon Mar 23, 2020 10:25 pm

watchnerd wrote:
Mon Mar 23, 2020 9:24 pm
whodidntante wrote:
Mon Mar 23, 2020 9:08 pm

I'm buying stocks with every bit of free cash flow because things might have snapped back in 18 months. But I'm not going to go all in until every last brain cell is screaming "buy!" Given the horrific narrative that will certainly coincide with such truly cheap valuations, putting in those buy orders will feel awful, whodidntante against a world gone mad, if the moment occurs.
Our IPS allows for "unnatural acts" at -70%.
When all this is over, we need to have a coffee! I want details! :beer

boogiehead
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Re: What have you learned from this situation that you will take action on?

Post by boogiehead » Mon Mar 23, 2020 10:34 pm

No two situations are ever the same, have a general plan, but stay nimble as well.

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watchnerd
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Re: What have you learned from this situation that you will take action on?

Post by watchnerd » Mon Mar 23, 2020 10:41 pm

WoodSpinner wrote:
Mon Mar 23, 2020 10:25 pm

When all this is over, we need to have a coffee! I want details! :beer
Well it starts with finding the gold coins buried in the backyard and then moves on to selling my wife's ABBA collectibles, before finally landing on the home remodeling funds.
70% Global Market Weight Equities | 15% Long Treasuries 15% short TIPS & cash || RSU + ESPP

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Cubicle
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Re: What have you learned from this situation that you will take action on?

Post by Cubicle » Mon Mar 23, 2020 10:46 pm

Great thread OP.

As long as I am 100% equities, look at my account balances & divide by 2. Always. The "missing" half is "retirement bonus pizza money".
"Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be.

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Re: What have you learned from this situation that you will take action on?

Post by yosemite_mountain » Mon Mar 23, 2020 10:47 pm

What I have learned:

Avoid debt:
-Pay cash for cars
-Pay off credit cards each month; limit use of credit cards (I have to sell my RSUs during this downturn to pay off a credit card which sucks coz I’m selling the RSUs at their lowest).

Emergency fund:
-Have at least 3 months of expenses

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watchnerd
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Re: What have you learned from this situation that you will take action on?

Post by watchnerd » Mon Mar 23, 2020 10:51 pm

yosemite_mountain wrote:
Mon Mar 23, 2020 10:47 pm

-Pay off credit cards each month; limit use of credit cards (I have to sell my RSUs during this downturn to pay off a credit card which sucks coz I’m selling the RSUs at their lowest).

I have RSUs, too...but why do you have to sell them now?
70% Global Market Weight Equities | 15% Long Treasuries 15% short TIPS & cash || RSU + ESPP

DonIce
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Re: What have you learned from this situation that you will take action on?

Post by DonIce » Mon Mar 23, 2020 10:51 pm

- Entering the bear with an ~80/20 AA didn't phase me one bit. Could probably do a more aggressive AA. Maybe a bit of leverage.
- Total bond market is dumb, treasuries are the way to go for the bond portion of your AA
- Being an essential worker is a nice perk

confusedinvestor
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Re: What have you learned from this situation that you will take action on?

Post by confusedinvestor » Mon Mar 23, 2020 11:06 pm

I learnt that I cant have 60:40 AA when I'd retire at 55 which is 10 years from now, I'm 75:25 now (45 yrs age) as I'd need a more conservative AA when I retire (like 45:55) as I cant afford to risk my portfolio crash when I plan to retire and then find out that I may have to go back to work when I'm 75

I cant afford to make such mistake which I cant recover from ….

https://podcasts.apple.com/us/podcast/m ... 0469236755

Today's podcast from Moringstar - the last 8 mins was particular eye opening ...

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Re: What have you learned from this situation that you will take action on?

Post by confusedinvestor » Mon Mar 23, 2020 11:10 pm

+100

I learnt that I cant retire unless I cant quit playing.

Brianmcg321 wrote:
Mon Mar 23, 2020 9:49 pm
I learned I really, really love long term treasuries.

At the beginning of the year I changed my portfolio from 100% stock to 60/40. With 30% of the bonds in LTT. That has made a huge difference in this downturn this year.

When I retire I will take Bernstein's advice and quit playing.

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celia
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Re: What have you learned from this situation that you will take action on?

Post by celia » Mon Mar 23, 2020 11:14 pm

lws wrote:
Mon Mar 23, 2020 6:01 pm
The advice of maintaining an earthquake emergency preparedness kit in SoCal was good advice.
The people who were laughing at me for gathering so much in earthquake supplies are now listening to me! Yeah, the odds are so small that _____ will ever happen. Well, something similar finally happened. Even those who thought a week ago that it didn't make sense to separate the living areas in our house are now going along with it. (We have a family member who is a RN and now have a mini-kitchen upstairs in the laundry room. We added a microwave, mini fridge and shelving. The dehydrated food will soon be opened so we can test to see what is still "good".)

If you live in "earthquake country" or have occasional unusual weather (hurricanes, tornadoes), use this as a practice run, although you may need to add lack of electricity and/or water to the situation.

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watchnerd
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Re: What have you learned from this situation that you will take action on?

Post by watchnerd » Mon Mar 23, 2020 11:15 pm

celia wrote:
Mon Mar 23, 2020 11:14 pm


If you live in "earthquake country" or have occasional unusual weather (hurricanes, tornadoes), use this as a practice run, although you may need to add lack of electricity and/or water to the situation.
This will go a good practice here in WA for when Mt. Rainier finally blows up.

https://www.nationalgeographic.com/scie ... llowstone/
70% Global Market Weight Equities | 15% Long Treasuries 15% short TIPS & cash || RSU + ESPP

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