No Peeking - 2021 Goal to not look at balances

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Aristotle_Foulmouth
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No Peeking - 2021 Goal to not look at balances

Post by Aristotle_Foulmouth »

Hello!

What are the risks of not reviewing my VG account for an entire year?

Over the past decade or so I’ve become inherently obsessed with checking my account balances. Daily reviews of progress, gains, losses, and everything in between is commonplace. Most of the time, no action can be taken with this data other than the occasional rebalance or celebration of reaching a new milestone.

While drafting my 2021 goals, I recalled an interview with Mr. Bogle where he suggested an investor to never look at their account balance for fear of emotion-based decisions. This sparked a thought for me to not review my Vanguard account for all of 2021.

Are there any inherent risks involved with this goal?

I have enough emergency funds outside of Vanguard and do not need any funds from my account for the next 22 years.
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Clark & Addison
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Re: No Peeking - 2021 Goal to not look at balances

Post by Clark & Addison »

Maybe there are enough safeguards in place for you to feel comfortable not checking, but I like to check once a month just to make sure there have been no unauthorized transactions on my accounts. If someone can somehow remove money from one of my accounts in January and I didn't realize it until the end of the year I think it would be harder to make right at that time than if it is noticed earlier.
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Re: No Peeking - 2021 Goal to not look at balances

Post by abuss368 »

I love Mr. Bogle’s advice and I understand the “don’t peek” specifically he would recommend. My only concern with that is the all the fraud prevalent today. Think about it. Over the past couple of decades we have moved from almost no online experience with statements laying in mailboxes, to electronic fraud.

What if there was an issue that was not noticed for a year? Would there be any recourse? Most statements give the account holder a small window of time to raise issues.

You may have to read the fine print of the quarterly statements and contact Vanguard directly to address some of the questions (if they concern you).
John C. Bogle: “Simplicity is the master key to financial success."
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mmmodem
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Re: No Peeking - 2021 Goal to not look at balances

Post by mmmodem »

The risk here is taking action based on emotions.

If not checking for a year helps alleviate this, then by all means, stop. Is your obsession with daily checking really causing you to take adverse actions? Are you having anxiety due to this inaction? If no, then what is wrong with your obsession? Maybe nothing. You may even get more anxiety precisely because you don't know what is going on with your accounts.
FoolMeOnce
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Re: No Peeking - 2021 Goal to not look at balances

Post by FoolMeOnce »

Regarding fraud: can you set alerts for transactions? That would take care of that without having to look.
UpperNwGuy
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Re: No Peeking - 2021 Goal to not look at balances

Post by UpperNwGuy »

I look every single day. It makes me feel good to know what's going on. I look, but I don't act. The only transactions I've initiated in 2020 apart from my regular once-a-month contributions were a rebalancing transaction in January and a tax loss harvesting transaction in March. I plan to keep looking.
Last edited by UpperNwGuy on Fri Oct 23, 2020 7:37 am, edited 3 times in total.
Broken Man 1999
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Re: No Peeking - 2021 Goal to not look at balances

Post by Broken Man 1999 »

While I greatly respected Mr Bogle, I think this particular piece of advise was horrible.

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Re: No Peeking - 2021 Goal to not look at balances

Post by JPH »

Would there be any material benefit to you by not checking? If you enjoy checking, then go ahead. It isn't more virtuous to be oblivious. The important thing is that you "Just stand there."
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Re: No Peeking - 2021 Goal to not look at balances

Post by jebmke »

For most of my accumulation years, the majority of our assets were in a DC plan that only reported annually. There was some value in that - although I think quarterly would have been fine too. Before the days of internet a lot of us had no visibility except on a quarterly basis anyway.
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Re: No Peeking - 2021 Goal to not look at balances

Post by abuss368 »

My goal moving forward is to “peek” only on the 24 pay dates of the year when I add funds. If I can do that, it will be a huge difference.
John C. Bogle: “Simplicity is the master key to financial success."
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JoMoney
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Re: No Peeking - 2021 Goal to not look at balances

Post by JoMoney »

Yes, there are risks to not looking. Vanguard (and other brokerages that have fraud policies) require you regularly review your account and immediately report any discrepancies or possible fraudulent activity.
https://personal.vanguard.com/us/help/S ... ontent.jsp

Monitor the activity in your account, and alert us immediately of any activity you didn't authorize.

Review the account-related information we send or make available to you as soon as you receive it, such as account statements, confirmations, and changes to your mail preferences (such as an address change), bank information (such as the addition or deletion of a bank), and other services.

Let us know immediately if you discover unauthorized activity, whether that activity is a transaction, a change to your account, or the addition, removal, or change of an account option or service. If you see something that you don't understand or that looks unusual, contact us for an explanation.
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dknightd
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Re: No Peeking - 2021 Goal to not look at balances

Post by dknightd »

Nothing wrong with looking at balances on a regular basis. I do it almost everyday. It makes me feel good, and helps protect against fraud.
The danger is acting on what you see. Unless it is fraud, then act ASAP.
If you value a bird in the hand, pay off the loan. If you are willing to risk getting two birds (or none) from the market, invest the funds.
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Re: No Peeking - 2021 Goal to not look at balances

Post by jebmke »

dknightd wrote: Fri Oct 23, 2020 7:54 am helps protect against fraud.
Looking at transactions would be better.
When you discover that you are riding a dead horse, the best strategy is to dismount.
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Re: No Peeking - 2021 Goal to not look at balances

Post by Stinky »

The mark of a mature investor is to be able to look, but not touch.
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anon_investor
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Re: No Peeking - 2021 Goal to not look at balances

Post by anon_investor »

abuss368 wrote: Fri Oct 23, 2020 7:42 am My goal moving forward is to “peek” only on the 24 pay dates of the year when I add funds. If I can do that, it will be a huge difference.
That is my goal for 2021. I wish I could do only once a month, but since I have to do manual roth conversions online every paycheck for the mega backdoor roth, 24 times would be the minimum. Right now only check once a week and I feel that is too much. Not sure how people check daily and not go insane.
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Re: No Peeking - 2021 Goal to not look at balances

Post by dziuniek »

You can set up text alerts form Vanguard for any transactions and transfers.

One caveat: When I switched cell phone providers - same number mind you - it got turned off. I received a letter from Vanguard a week or so later stating it got turned off so I had to set it up again.
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Re: No Peeking - 2021 Goal to not look at balances

Post by abuss368 »

anon_investor wrote: Fri Oct 23, 2020 8:10 am Right now only check once a week and I feel that is too much. Not sure how people check daily and not go insane.
I would agree for sure! I have family who checks their balance every day and literally goes crazy if they are “losing money”. They never trade but they do cause themselves stress.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: No Peeking - 2021 Goal to not look at balances

Post by abuss368 »

dziuniek wrote: Fri Oct 23, 2020 8:14 am You can set up text alerts form Vanguard for any transactions and transfers.

One caveat: When I switched cell phone providers - same number mind you - it got turned off. I received a letter from Vanguard a week or so later stating it got turned off so I had to set it up again.
That is right! We go receive both texts and emails. So yes, one would not have to “peek” unless adding new money.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: No Peeking - 2021 Goal to not look at balances

Post by abuss368 »

Stinky wrote: Fri Oct 23, 2020 8:03 am The mark of a mature investor is to be able to look, but not touch.
This is really good. I like this quote.
John C. Bogle: “Simplicity is the master key to financial success."
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8foot7
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Re: No Peeking - 2021 Goal to not look at balances

Post by 8foot7 »

Not looking for a year is a terrible idea. I understand the motivation but the risks outweigh the benefit.
That said, you certainly don't have to look every day. Why not every 30 days? 45 days? Typically at day 60 after a statement your ability to challenge apparent errors significantly diminishes.
You could treat a statement review update as a monthly thing. The third Sunday morning of each month, grab a cup of coffee and take a look. I like Sundays because you can't transact, so it's an added layer of separation between your emotions and a potential reaction, and if you do decide to place orders on Sunday, you have until 4 pm ET Monday to change your mind before they are filled.
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Re: No Peeking - 2021 Goal to not look at balances

Post by anon_investor »

abuss368 wrote: Fri Oct 23, 2020 8:16 am
anon_investor wrote: Fri Oct 23, 2020 8:10 am Right now only check once a week and I feel that is too much. Not sure how people check daily and not go insane.
I would agree for sure! I have family who checks their balance every day and literally goes crazy if they are “losing money”. They never trade but they do cause themselves stress.
I cannot imagine that, especially during March and April of this year! I wish I could automate more of my investing then I would dial back to checking once a month, or even once a quarter!
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Re: No Peeking - 2021 Goal to not look at balances

Post by 260chrisb »

abuss368 wrote: Fri Oct 23, 2020 8:17 am
Stinky wrote: Fri Oct 23, 2020 8:03 am The mark of a mature investor is to be able to look, but not touch.
This is really good. I like this quote.
I like this as well. I'm always looking but never straying from my plan and making emotional decisions. It's not always easy. My 401K is on autopilot with contributions and my taxable VG account is transacted to manually normally twice a month at a set monthly amount but sometimes just once depending on payroll. I was done for February about mid-month and held off until late March to transact for March and it was the first time I had EVER gone more than couple weeks without looking. I knew what it was doing, was stressing out a bit, but knew I was doing the right thing, was diversified, and was going to stay the course.
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Re: No Peeking - 2021 Goal to not look at balances

Post by CyclingDuo »

Aristotle_Foulmouth wrote: Fri Oct 23, 2020 6:29 am Hello!

What are the risks of not reviewing my VG account for an entire year?

Over the past decade or so I’ve become inherently obsessed with checking my account balances. Daily reviews of progress, gains, losses, and everything in between is commonplace. Most of the time, no action can be taken with this data other than the occasional rebalance or celebration of reaching a new milestone.

While drafting my 2021 goals, I recalled an interview with Mr. Bogle where he suggested an investor to never look at their account balance for fear of emotion-based decisions. This sparked a thought for me to not review my Vanguard account for all of 2021.

Are there any inherent risks involved with this goal?

I have enough emergency funds outside of Vanguard and do not need any funds from my account for the next 22 years.
The business of investing is really boring. What's the benefit to you of being obsessed with your balances and checking daily to see your progress, gains, losses, and everything between? Is it causing you to make tweaks and changes? Is it adding drama to what really is a mundane process over decades?

Our suggestion: Be like Sarah.

https://imgur.com/gallery/BlK4jzM

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Re: No Peeking - 2021 Goal to not look at balances

Post by dknightd »

Stinky wrote: Fri Oct 23, 2020 8:03 am The mark of a mature investor is to be able to look, but not touch.
I'm glad I was looking in March. It gave me the opportunity to rebalance on a really quick blip. But you are right, on balance, look but do not touch.
If you value a bird in the hand, pay off the loan. If you are willing to risk getting two birds (or none) from the market, invest the funds.
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Re: No Peeking - 2021 Goal to not look at balances

Post by emoore »

I would never be able to go a week let alone a year without checking. I check all my balances every few days for fraud and just to see. Same goes with credit cards, checking accounts, savings accounts, etc.
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Re: No Peeking - 2021 Goal to not look at balances

Post by Texanbybirth »

I look at our investment accounts only once a month to update our budget spreadsheet. I believe 30 days is plenty of time to address any instances of fraud.

(We do have significant savings in our bank, in the case that fraud might keep us from accessing our investment money for a longer period.)
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Re: No Peeking - 2021 Goal to not look at balances

Post by Nowizard »

As with most complex issues, this question cannot logically be reduced to an either/or answer. Moderation with all things. The comments about avoiding checking balances is logical if doing so increases risk of impulsive responses or dramatically increases anxiety. If it is simply an activity that provides ongoing context, it is not an issue.

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Re: No Peeking - 2021 Goal to not look at balances

Post by fishandgolf »

Stinky wrote: Fri Oct 23, 2020 8:03 am The mark of a mature investor is to be able to look, but not touch.
+1000

:sharebeer

I check my account everyday......usually in the evening. The urge to mess around with it left me many years ago; perhaps retirement had some influence on that.......
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Re: No Peeking - 2021 Goal to not look at balances

Post by Colorado Guy »

deleted
Last edited by Colorado Guy on Sat Oct 24, 2020 7:47 am, edited 2 times in total.
totality
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Re: No Peeking - 2021 Goal to not look at balances

Post by totality »

OP, I think this is a great idea. If checking is becoming unhealthy for you, don't do it.

(I do think the suggestion of some other posters to set up transaction notifications is wise.)
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Re: No Peeking - 2021 Goal to not look at balances

Post by michaeljc70 »

Aristotle_Foulmouth wrote: Fri Oct 23, 2020 6:29 am Hello!

What are the risks of not reviewing my VG account for an entire year?

Over the past decade or so I’ve become inherently obsessed with checking my account balances. Daily reviews of progress, gains, losses, and everything in between is commonplace. Most of the time, no action can be taken with this data other than the occasional rebalance or celebration of reaching a new milestone.

While drafting my 2021 goals, I recalled an interview with Mr. Bogle where he suggested an investor to never look at their account balance for fear of emotion-based decisions. This sparked a thought for me to not review my Vanguard account for all of 2021.

Are there any inherent risks involved with this goal?


I have enough emergency funds outside of Vanguard and do not need any funds from my account for the next 22 years.
Why not ask if there any benefit to not looking? That depends on the person, but I look all the time (using Quicken it updates pretty much automatically) and like looking and take no action based on what I see.

I wonder if avoiding looking means an inappropriate AA. I also don't know how you appropriately withdraw/deposit funds to the right AA without looking at balances (unless using something like a target fund).

The negatives of this goal is you may miss fraud/errors and depending on your rules, rebalancing. You may miss opportunities to capital gain/capital loss harvest.

I've personally never thought sticking your head in the sand is real useful. Another point I've made on other threads is that if you ever turn on the news, read a paper (or online) or talk to people you will probably have a decent idea where your portfolio is based on broad market measures/news. I mean, could you have really not known your portfolio was way down in March even if you didn't log into Vanguard?
Last edited by michaeljc70 on Fri Oct 23, 2020 9:37 am, edited 1 time in total.
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Re: No Peeking - 2021 Goal to not look at balances

Post by jebmke »

dknightd wrote: Fri Oct 23, 2020 8:47 am
Stinky wrote: Fri Oct 23, 2020 8:03 am The mark of a mature investor is to be able to look, but not touch.
I'm glad I was looking in March. It gave me the opportunity to rebalance on a really quick blip. But you are right, on balance, look but do not touch.
I always check for unrealized capital losses in my taxable account when there is a significant down tick like March. This time I found that a couple of smaller legacy positions in some non-VG international funds had some losses and I was able to dump them and book the loss. I had missed doing so in 2009 and had been looking for an opportunity because they were higher ER and not tax efficient.

When the market is rising I tend not to look at much other than the transactions.
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Re: No Peeking - 2021 Goal to not look at balances

Post by Broken Man 1999 »

Stinky wrote: Fri Oct 23, 2020 8:03 am The mark of a mature investor is to be able to look, but not touch.
Indeed. I don't understand the problems people have with such matters.

Life is full of temptations we face every day.

Still, people can be and are wildly different.

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Re: No Peeking - 2021 Goal to not look at balances

Post by Escapevelocity »

There was a Planet Money podcast episode about escheatment (unclaimed property) recently. One of the stories cited was about a guy that had invested in Tesla very early with the intention to not touch the shares for 10-20 years. At some point, he moved to a new residence. Since he failed to change his address with the brokerage, his statements eventually were returned to sender. After some period of time, the brokerage turned his account assets (Tesla shares) over to the State under the laws on abandoned property. The State in turn liquidated the shares but kept the resulting cash on the unclaimed property database.

Eventually, the guy went looking for his Tesla stock only to learn what had happened. He was able to claim and recover the cash from the State. However, he lost out on the investment return of 1000's of percentage on the gain in the stock which amounted to several million dollars! :oops:
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Re: No Peeking - 2021 Goal to not look at balances

Post by BigMoneyNoWhammies »

Aristotle_Foulmouth wrote: Fri Oct 23, 2020 6:29 am Hello!

What are the risks of not reviewing my VG account for an entire year?

Over the past decade or so I’ve become inherently obsessed with checking my account balances. Daily reviews of progress, gains, losses, and everything in between is commonplace. Most of the time, no action can be taken with this data other than the occasional rebalance or celebration of reaching a new milestone.

While drafting my 2021 goals, I recalled an interview with Mr. Bogle where he suggested an investor to never look at their account balance for fear of emotion-based decisions. This sparked a thought for me to not review my Vanguard account for all of 2021.

Are there any inherent risks involved with this goal?

I have enough emergency funds outside of Vanguard and do not need any funds from my account for the next 22 years.
I don't check daily, but I check the next day after any contributions made/shares purchased or sold because

1) I want to ensure all funds were properly deposited, and any shares purchased/sold were in the appropriate amounts

2) Check for fraudulent transactions as others have mentioned

3) I personally enjoy tracking my portfolio regularly as (for me) it reinforces my resolve to stick to my investment plan when I see regular progress towards winning the game, since I'm still very much in the accumulation phase and my portfolio grows far more from contributions than capital gains.

4) I want to see how various events impact the market in relatively real time, which may possibly better inform me for making some future decision should a similar event occur at some point down the road.
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Re: No Peeking - 2021 Goal to not look at balances

Post by Fallible »

Aristotle_Foulmouth wrote: Fri Oct 23, 2020 6:29 am ...
What are the risks of not reviewing my VG account for an entire year?

Over the past decade or so I’ve become inherently obsessed with checking my account balances. Daily reviews of progress, gains, losses, and everything in between is commonplace. Most of the time, no action can be taken with this data other than the occasional rebalance or celebration of reaching a new milestone.

While drafting my 2021 goals, I recalled an interview with Mr. Bogle where he suggested an investor to never look at their account balance for fear of emotion-based decisions. This sparked a thought for me to not review my Vanguard account for all of 2021. ...
Welcome to the forum.

Can you compromise and look at your account the end of each quarter ONLY for possible transaction errors and a GLANCE ONLY at the overall balance and then move on to enjoy the freedom to do other less risky and more worthwhile things in life than tinkering with your portfolio?

As for Jack's "Don't peek," here's a quote on his overall point:

“As I have said before, the daily machinations of the stock market are like a tale told by an idiot, full of sound and fury, signifying nothing,” Bogle added. “One of my favorite rules is ‘Don’t peek.’ Don’t let all the noise drown out your common sense and your wisdom. Just try not to pay that much attention, because it will have no effect whatsoever, categorically, on your lifetime investment returns.”
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
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Re: No Peeking - 2021 Goal to not look at balances

Post by shockwavesfan »

I think Bogle wasn't speaking to the average Boglehead when he made that statement. Someone who reads the Bogleheads message boards probably has a set AA, an understanding of investing over long periods of time, etc.

Bogle was talking to the average american who has no understanding of these concepts.

As someone who advises participants in 401k plans, the participants that I know that check their account balances all the time are always significantly more likely to do something inappropriate in their account based on an emotional reaction.
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Re: No Peeking - 2021 Goal to not look at balances

Post by Olemiss540 »

Stinky wrote: Fri Oct 23, 2020 8:03 am The mark of a mature investor is to be able to look, but not touch.
The mark of a mature human is to know ones weaknesses and to not judge others on their own.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.
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Re: No Peeking - 2021 Goal to not look at balances

Post by Olemiss540 »

shockwavesfan wrote: Fri Oct 23, 2020 10:05 am I think Bogle wasn't speaking to the average Boglehead when he made that statement. Someone who reads the Bogleheads message boards probably has a set AA, an understanding of investing over long periods of time, etc.

Bogle was talking to the average american who has no understanding of these concepts.

As someone who advises participants in 401k plans, the participants that I know that check their account balances all the time are always significantly more likely to do something inappropriate in their account based on an emotional reaction.
I am sure you have been here to read subjects posted during downturns enough to know the "average boglehead" is subject to the same behavioral mistakes as everyone else. Just because Taylor, Abuss, Pcrafter, etc arent posting about tweaks to their portfolio doesn't mean that the "average boglehead" isn't actively committing these errors.

Thinking we are holier than thou and less prone to behavioral mistakes (performance chasing, selling low, etc) is a much larger concern than being humble with how we might act during the next crisis and tweaking our actions to best prevent errors IMO.

This is one of the reasons I believe target date funds to be a great choice for those with low or no taxable accounts, even if you are an avid boglehead.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.
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Re: No Peeking - 2021 Goal to not look at balances

Post by Dandy »

Don't peek while well intentioned it was a really bad piece of advice. He even suggested that it would be good to not look until you retired and would be so pleased at the amount. Now some people have issues when they over check and then over stress. But not looking at your investment or bank account on a regular basis has risk. You want to make sure your account hasn't been hacked, that the institution holding your assets hasn't made an error and for investments you want to have some feedback on whether you allocation is close to your target. Statements often have important messages that could cause problems if you didn't read them. Kind of hard to complain about an issue by saying I don't look at my statements or accounts.

You only have a relatively short time to report problems/errors etc. So if you get too stressed by looking at your statements -- have someone you trust look to make sure all is ok.
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Re: No Peeking - 2021 Goal to not look at balances

Post by abuss368 »

anon_investor wrote: Fri Oct 23, 2020 8:23 am
abuss368 wrote: Fri Oct 23, 2020 8:16 am
anon_investor wrote: Fri Oct 23, 2020 8:10 am Right now only check once a week and I feel that is too much. Not sure how people check daily and not go insane.
I would agree for sure! I have family who checks their balance every day and literally goes crazy if they are “losing money”. They never trade but they do cause themselves stress.
I cannot imagine that, especially during March and April of this year! I wish I could automate more of my investing then I would dial back to checking once a month, or even once a quarter!
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Re: No Peeking - 2021 Goal to not look at balances

Post by Nate79 »

If you can not monitor your portfolio you have two problems. First, your asset allocation is wrong - it is too risky to let you sleep at night. The second is investor education issue. I would work on improving both of these before making childish rules like don't peek.
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Re: No Peeking - 2021 Goal to not look at balances

Post by Dottie57 »

In 1988 My employer started a 401k. The funds were proprietary to the provider so you couldn’t check on them. I receved a statement at end of year.


It didn’t hurt at all.
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anon_investor
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Re: No Peeking - 2021 Goal to not look at balances

Post by anon_investor »

Dottie57 wrote: Fri Oct 23, 2020 11:10 am In 1988 My employer started a 401k. The funds were proprietary to the provider so you couldn’t check on them. I receved a statement at end of year.


It didn’t hurt at all.
I bet they weren't index funds...
Dottie57
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Re: No Peeking - 2021 Goal to not look at balances

Post by Dottie57 »

anon_investor wrote: Fri Oct 23, 2020 11:19 am
Dottie57 wrote: Fri Oct 23, 2020 11:10 am In 1988 My employer started a 401k. The funds were proprietary to the provider so you couldn’t check on them. I receved a statement at end of year.


It didn’t hurt at all.
I bet they weren't index funds...
No. They were proprietary to the 401k company.

Listed on statement as :

The Regional stock fund
The Bond fund
The Stable value fund.

When I changed employers I then had Vanguards. SP500 as an option.
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CyclingDuo
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Re: No Peeking - 2021 Goal to not look at balances

Post by CyclingDuo »

Dottie57 wrote: Fri Oct 23, 2020 11:26 amWhen I changed employers I then had Vanguards. SP500 as an option.
Back to everyone's regular Friday night fun...

I think we've all been had by an OP with this being the first post and the handle Aristotle_Foulmouth. :shock:
"Save like a pessimist, invest like an optimist." - Morgan Housel
Dottie57
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Re: No Peeking - 2021 Goal to not look at balances

Post by Dottie57 »

CyclingDuo wrote: Fri Oct 23, 2020 7:24 pm
Dottie57 wrote: Fri Oct 23, 2020 11:26 amWhen I changed employers I then had Vanguards. SP500 as an option.
Back to everyone's regular Friday night fun...

I think we've all been had by an OP with this being the first post and the handle Aristotle_Foulmouth. :shock:
Gotta learn to look at who s posting.... :o
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dziuniek
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Re: No Peeking - 2021 Goal to not look at balances

Post by dziuniek »

You might want to peek quarterly just for the re-balancing- unless it's sitting in one fund or a brokerage that does it for you automatically.

Unless of course you don't re-balance or do it on an annual basis.
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goingup
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Re: No Peeking - 2021 Goal to not look at balances

Post by goingup »

Aristotle_Foulmouth wrote: Fri Oct 23, 2020 6:29 am Over the past decade or so I’ve become inherently obsessed with checking my account balances. Daily reviews of progress, gains, losses, and everything in between is commonplace.
It's a good plan to cut back on viewing your portfolio balance if you feel you've become obsessed. Smart researchers have identified a behavioral tic called "myopic loss aversion". The idea is that the effect of financial loss is quite painful, much more so than the pleasure of financial gain. When you constantly look at account balances you see the daily swings and the losses can cause an investor to be more conservative than would if they weren't monitoring so closely.

There was some science behind Jack Bogle admonishment to not peek. Personally, I wouldn't want to go a year without looking, because it's our life's savings after all. Why not try either once a month on the first of the month, or once a quarter at the quarter's end? Seems easier to discipline oneself with a actual date for permitted peeking. I admit during the March swoon I was checking our balance everyday trying to pull the trigger on tax-loss harvesting, which I eventually did for a booked $25K loss. :D
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Re: No Peeking - 2021 Goal to not look at balances

Post by TheDDC »

goingup wrote: Mon Oct 26, 2020 9:41 am
Aristotle_Foulmouth wrote: Fri Oct 23, 2020 6:29 am Over the past decade or so I’ve become inherently obsessed with checking my account balances. Daily reviews of progress, gains, losses, and everything in between is commonplace.
It's a good plan to cut back on viewing your portfolio balance if you feel you've become obsessed. Smart researchers have identified a behavioral tic called "myopic loss aversion". The idea is that the effect of financial loss is quite painful, much more so than the pleasure of financial gain. When you constantly look at account balances you see the daily swings and the losses can cause an investor to be more conservative than would if they weren't monitoring so closely.

There was some science behind Jack Bogle admonishment to not peek. Personally, I wouldn't want to go a year without looking, because it's our life's savings after all. Why not try either once a month on the first of the month, or once a quarter at the quarter's end? Seems easier to discipline oneself with a actual date for permitted peeking. I admit during the March swoon I was checking our balance everyday trying to pull the trigger on tax-loss harvesting, which I eventually did for a booked $25K loss. :D
I didn't know there was an official term for it.

It would seem like the best medicine here in this situation would be to add funds to bring the total balance back to where it was before, which does two things:

1) Scratches the itch to "do something"

2) Gives you compounded returns when the market performs at its full potential once again

-TheDDC
Rules to wealth building: 90-100% VTSAX piled high and deep, 0-10% VIGAX tilt, 0% given away to banks, minimize amount given to medical-industrial complex
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