2020: Lessons learned

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tennisplyr
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2020: Lessons learned

Post by tennisplyr »

Financially, what did you learn from 2020?
Those who move forward with a happy spirit will find that things always work out.
jeffreys
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Re: 2020: Lessons learned

Post by jeffreys »

- Don't book flights so far in advance
- More educated on financial planning particularly for early retirement simply by virtue of having more time due to all those flights not taken!
theplayer11
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Re: 2020: Lessons learned

Post by theplayer11 »

continue to buy in big on huge dips
jaqenhghar
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Re: 2020: Lessons learned

Post by jaqenhghar »

(1) cash is king during market swings

(2) don't introduce emotion into something I've learned how to automate
BionicBillWalsh
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Re: 2020: Lessons learned

Post by BionicBillWalsh »

Don't always listen to the advice given on this board...otherwise you may pull the trigger on selling a large amount of Tesla stock way too early due to single stock risk.
Jerry Garcia: If I knew the way...I would take you home.
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BolderBoy
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Re: 2020: Lessons learned

Post by BolderBoy »

tennisplyr wrote: Sun Dec 27, 2020 5:36 pmFinancially, what did you learn from 2020?
That rebalancing works as intended!
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
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Sandtrap
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Re: 2020: Lessons learned

Post by Sandtrap »

Don't book flights too far in advance.
Persistence pays off for full refunds for cancelled flights.

Stick to IPS in market swings. And, if in doubt of rebalancing bands or anything else, do nothing.

Ignore the noise, all of the colors and flavors of the month noise about everything.

Foundational "boglehead investment basics and strategies" work.

What others think and opine and pundit and profess and digress and digest :shock: :shock: . . . is irrelevant to one's personal financial and other strategy in life.

The "bogleheads.org" forum is an incredibly effective personal finance education and "support" group.

j :D
Wiki Bogleheads Wiki: Everything You Need to Know
Tingting1013
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Re: 2020: Lessons learned

Post by Tingting1013 »

Wait for holiday incentives before buying a new car. Could have saved me $5k this year 🤦🏻‍♂️
Godot
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Re: 2020: Lessons learned

Post by Godot »

Sandtrap wrote: Sun Dec 27, 2020 5:58 pm

The "bogleheads.org" forum is an incredibly effective personal finance education and "support" group.

j :D
+1!
Estragon: I can't go on like this. | Vladimir: That's what you think. | ― Samuel Beckett, Waiting for Godot
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tennisplyr
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Re: 2020: Lessons learned

Post by tennisplyr »

The stock market is very resilient and it's virtually impossible to determine was truly drives it.
Those who move forward with a happy spirit will find that things always work out.
gator15
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Re: 2020: Lessons learned

Post by gator15 »

Don’t procrastinate completing a backdoor Roth. Having prepared meals delivered to our house daily isn’t that much more expense than buying groceries and prepping the meals myself when you consider time spent prepping the meal. I’m just as effective working from the house if not more than working in an office. Not commuting much this year has saved me a lot of money on gas and maintenance considering my commute was nearly a 150 mile round trip everyday.
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Kenkat
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Re: 2020: Lessons learned

Post by Kenkat »

I saw a recent comment about 2020, paraphrased I think from something pre-2020, but it was:

We are not all in the same boat; we are in the same storm. Some have yachts, some have rowboats, while others are drowning.

I realized that I was fortunate that my particular job was largely unaffected; I can work at home for the same pay and benefits as before. That was just sheer luck / good fortune.

I also learned that those with capital in the form of savings and investments were in a far better position than those without. That’s probably always true, but it became critical this year.

Financially, I have done fine in 2020, with cash (due to decreased expenses) and investments at all time highs. Health-wise, no one in my immediate family has caught Covid-19 and while extended family and friends did, none were affected enough to need hospitalization.

So 2020 for me has been 50% luck and 50% being ready in advance for and during the storm.
Last edited by Kenkat on Sun Dec 27, 2020 6:20 pm, edited 3 times in total.
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AerialWombat
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Re: 2020: Lessons learned

Post by AerialWombat »

VTI ain’t half bad.
For entertainment purposes only.
abc132
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Re: 2020: Lessons learned

Post by abc132 »

I Bond & EE Bond for the win!

Funny enough, I found some pamphlets on them from 1994 while trying to find my Roth contributions over the years.
minesweep
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Re: 2020: Lessons learned

Post by minesweep »

That staying the course works. Actually I didn't just learn that fact this year. I've been doing just that since October 19 of 1987 when the Dow plunged 22.6% in one day.
Last edited by minesweep on Sun Dec 27, 2020 6:24 pm, edited 1 time in total.
Time is your friend; impulse is your enemy - John Bogle | Learn every day, but especially from the experiences of others, it's cheaper! - John Bogle
Woodshark
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Re: 2020: Lessons learned

Post by Woodshark »

I learned that somehow, against all logic, the market can actually quickly shrug off a worldwide pandemic.
I'm still baffled but happy.
johnegonpdx
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Re: 2020: Lessons learned

Post by johnegonpdx »

I can live a much simpler life and still be very, very happy.
In the process, I can save and invest more than I originally thought I could.
Tingting1013
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Re: 2020: Lessons learned

Post by Tingting1013 »

tennisplyr wrote: Sun Dec 27, 2020 6:10 pm The stock market is very resilient and it's virtually impossible to determine was truly drives it.
The Fed
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aktx97
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Re: 2020: Lessons learned

Post by aktx97 »

When in doubt, consider checking in on Bogleheads.org before doing any transactions.
Keep calm and stay the course.
femgineer
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Re: 2020: Lessons learned

Post by femgineer »

BolderBoy wrote: Sun Dec 27, 2020 5:55 pm
tennisplyr wrote: Sun Dec 27, 2020 5:36 pmFinancially, what did you learn from 2020?
That rebalancing works as intended!
+1
pasadena
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Re: 2020: Lessons learned

Post by pasadena »

* I really do need a more substantial income replacement emergency fund so I can sleep at night during worldwide economic crisis and periods of uncertainty. Because I really, really don't want to spend money from my investments and postpone my goals.

* My retirement Asset Allocation is at the right level for me, at least when the market tanks badly for a short period of time. Hence, my non-retirement asset allocation was too conservative (also because my non-retirement goals have shifted).

* Rebalancing is a beautiful thing, and tax loss harvesting is not as bad as I thought it was :D

* When in doubt, your IPS is your friend. If your IPS doesn't tell you to do something, listen.

* FOMO is a thing, and I'm not immune to it. Confirmation bias is also very strong in some circles.

* This forum is the weapon I need to fight against said FOMO.

* I probably should have bought my fun-money stocks in my Roth IRA instead of brokerage :shock:
Tingting1013
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Re: 2020: Lessons learned

Post by Tingting1013 »

pasadena wrote: Sun Dec 27, 2020 6:36 pm * I probably should have bought my fun-money stocks in my Roth IRA instead of brokerage :shock:
I think the standard advice is the opposite, to take advantage of TLH if your fun money 🤑 turns into sad money 😫
h82goslw
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Re: 2020: Lessons learned

Post by h82goslw »

I learned what a "K shaped recovery" meant

I also learned that I am very comfortable with my AA in the midst of a market crash like what we saw in March....due to what I've learned on this website. And I owe 99% of my financial success to this website. Thank you Mr. Bogle, Mr. Larrimore and the rest of the folks who post endlessly on Bogleheads.
pasadena
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Re: 2020: Lessons learned

Post by pasadena »

Tingting1013 wrote: Sun Dec 27, 2020 6:38 pm
pasadena wrote: Sun Dec 27, 2020 6:36 pm * I probably should have bought my fun-money stocks in my Roth IRA instead of brokerage :shock:
I think the standard advice is the opposite, to take advantage of TLH if your fun money 🤑 turns into sad money 😫
I know! But when fun money 🤑 turns into happy money 🤑 :moneybag , it hurts lol. Hindsight!
000
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Re: 2020: Lessons learned

Post by 000 »

Fixed income isn't a good store of value.
JBTX
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Re: 2020: Lessons learned

Post by JBTX »

The the world and the future are unpredictable.

That things we would never think could happen, can happen.
Afty
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Re: 2020: Lessons learned

Post by Afty »

Don’t panic. Stay the course.
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GerryL
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Re: 2020: Lessons learned

Post by GerryL »

Don't fall for the offer by cruise companies to save a few dollars by paying with an "echeck" instead of applying charges to a card.

Before making the payment, I read the T&Cs to confirm that if they cancelled the trip they would refund what I paid. They did indeed cancel, but they insist the trip has been "postponed" and have said their lawyers told them they only have to offer me a cruise credit. The only communication is daily marketing emails and weekly circulars and catalogs -- with no offers of anything similar to the trip that was cancelled.
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alec
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Re: 2020: Lessons learned

Post by alec »

Money isn’t as important as physical and mental health.
"It is difficult to get a man to understand something, when his salary depends upon his not understanding it!" - Upton Sinclair
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JoeRetire
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Re: 2020: Lessons learned

Post by JoeRetire »

tennisplyr wrote: Sun Dec 27, 2020 5:36 pm Financially, what did you learn from 2020?
Nothing I didn't already know.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.
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JoeRetire
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Re: 2020: Lessons learned

Post by JoeRetire »

gator15 wrote: Sun Dec 27, 2020 6:15 pmHaving prepared meals delivered to our house daily isn’t that much more expense than buying groceries and prepping the meals myself when you consider time spent prepping the meal.
How so? Are you giving up paid hours to prep your meals?
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.
GuySmiley
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Re: 2020: Lessons learned

Post by GuySmiley »

2020 reinforced that nobody knows nuthin', maintain balance, and keep expenses low. On a narrower basis, I learned about I-bonds via income tax overpayment, the SWAN benefits of having a healthy emergency fund (which I learned by it's absence!), and the realization that our savings rate is likely to decrease once the teenager starts driving in a few years, then another after that, then another after that...
KlangFool
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Re: 2020: Lessons learned

Post by KlangFool »

femgineer wrote: Sun Dec 27, 2020 6:34 pm
BolderBoy wrote: Sun Dec 27, 2020 5:55 pm
tennisplyr wrote: Sun Dec 27, 2020 5:36 pmFinancially, what did you learn from 2020?
That rebalancing works as intended!
+1

+2

KlangFool
UpperNwGuy
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Re: 2020: Lessons learned

Post by UpperNwGuy »

— Don't buy airfare too far in advance.
— Resist the temptation to "do something" with your portfolio when the market is volatile. Stay the course instead.
— Bonds are not as bad as many on this forum would have you believe.
— The market will often rebalance for you.
montanagirl
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Re: 2020: Lessons learned

Post by montanagirl »

RMD comes first;

THEN Roth conversions.

:|
wootwoot
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Re: 2020: Lessons learned

Post by wootwoot »

TLH can have demonstrable value despite all of the threads that downplay TLH's impact.
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willthrill81
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Re: 2020: Lessons learned

Post by willthrill81 »

Major stock market declines do not occur in a vacuum. They are typically caused by really bad news on one or more fronts. As such, investors' willingness to take on risk can decline precipitously at the same time that stocks are tumbling.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
pasadena
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Re: 2020: Lessons learned

Post by pasadena »

willthrill81 wrote: Sun Dec 27, 2020 7:40 pm As such, investors' willingness to take on risk can decline precipitously at the same time that stocks are tumbling.
And then it skyrockets to unreasonable levels when stocks go back up.
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Re: 2020: Lessons learned

Post by UpperNwGuy »

gator15 wrote: Sun Dec 27, 2020 6:15 pm Having prepared meals delivered to our house daily isn’t that much more expense than buying groceries and prepping the meals myself when you consider time spent prepping the meal.
To reach this conclusion you have to value your personal time at the same hourly rate as your professional time. I don't think that's valid.
Tingting1013
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Re: 2020: Lessons learned

Post by Tingting1013 »

UpperNwGuy wrote: Sun Dec 27, 2020 7:44 pm
gator15 wrote: Sun Dec 27, 2020 6:15 pm Having prepared meals delivered to our house daily isn’t that much more expense than buying groceries and prepping the meals myself when you consider time spent prepping the meal.
To reach this conclusion you have to value your personal time at the same hourly rate as your professional time. I don't think that's valid.
A rational person would value their personal time higher than their working time.
UpperNwGuy
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Re: 2020: Lessons learned

Post by UpperNwGuy »

Tingting1013 wrote: Sun Dec 27, 2020 7:45 pm
UpperNwGuy wrote: Sun Dec 27, 2020 7:44 pm
gator15 wrote: Sun Dec 27, 2020 6:15 pm Having prepared meals delivered to our house daily isn’t that much more expense than buying groceries and prepping the meals myself when you consider time spent prepping the meal.
To reach this conclusion you have to value your personal time at the same hourly rate as your professional time. I don't think that's valid.
A rational person would value their personal time higher than their working time.
A rational person would value being able to control their food prep to ensure healthy eating.
Xyz214
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Re: 2020: Lessons learned

Post by Xyz214 »

theplayer11 wrote: Sun Dec 27, 2020 5:43 pm continue to buy in big on huge dips
where did the money come from?
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willthrill81
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Re: 2020: Lessons learned

Post by willthrill81 »

pasadena wrote: Sun Dec 27, 2020 7:42 pm
willthrill81 wrote: Sun Dec 27, 2020 7:40 pm As such, investors' willingness to take on risk can decline precipitously at the same time that stocks are tumbling.
And then it skyrockets to unreasonable levels when stocks go back up.
Indeed.

Investors need to estimate as best they can how much stock they want to own when it seems like the world is crashing in on itself. That estimate may be very different than more conventional means of estimating risk tolerance (e.g. 'adjust your risk tolerance assuming that stocks could fall by 50% at any point).
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
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willthrill81
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Re: 2020: Lessons learned

Post by willthrill81 »

theplayer11 wrote: Sun Dec 27, 2020 5:43 pm continue to buy in big on huge dips
:oops:

And what if the 'huge dip' turns into an ugly bear market that lasts for years?
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
flaccidsteele
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Re: 2020: Lessons learned

Post by flaccidsteele »

theplayer11 wrote: Sun Dec 27, 2020 5:43 pm continue to buy in big on huge dips
+1 this

Buying more in the spring yielded fantastic results as per usual
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
260chrisb
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Re: 2020: Lessons learned

Post by 260chrisb »

[Political comment removed by moderator oldcomputerguy] I've also learned to think differently as I near retirement. I took action on this late in 2019 based on what I had learned from 2018. I also learned that thinking and acting long term continues to be the very best approach and sticking to your plan is the right thing to do utilizing the best investments and information available. Being part of this community helps. Last year I enjoyed my best year financially! This year will be my second best. For the life of me I would not have ever believed this possible back in February and March. Obviously there is more to learn.
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willthrill81
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Re: 2020: Lessons learned

Post by willthrill81 »

flaccidsteele wrote: Sun Dec 27, 2020 7:50 pm
theplayer11 wrote: Sun Dec 27, 2020 5:43 pm continue to buy in big on huge dips
+1 this

Buying more in the spring yielded fantastic results as per usual
How well did that work in the year 2000?
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
flaccidsteele
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Re: 2020: Lessons learned

Post by flaccidsteele »

willthrill81 wrote: Sun Dec 27, 2020 7:59 pm
flaccidsteele wrote: Sun Dec 27, 2020 7:50 pm
theplayer11 wrote: Sun Dec 27, 2020 5:43 pm continue to buy in big on huge dips
+1 this

Buying more in the spring yielded fantastic results as per usual
How well did that work in the year 2000?
I picked up the bulk of my shares of Berkshire Hathaway B when it fell from 2700 to 1400 during the tech wreck

I still own them to this day

For me it was the beginning of a fantastic series of buying more during downturns
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
Fallible
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Re: 2020: Lessons learned

Post by Fallible »

_Just how far apart the stock market and the economy can get.
_How we still aren't certain whether what appears to be a market bubble really is a bubble or when it might burst.
_How uncertainty is the most important lesson of any year, requiring finding and staying the right course. Thank you, Jack Bogle.
"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
GenawithanE
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Re: 2020: Lessons learned

Post by GenawithanE »

jeffreys wrote: Sun Dec 27, 2020 5:38 pm - Don't book flights so far in advance

+1
Really, +14000. Hoping we can go to Australia next year.

And we learned that travel insurance doesn’t cover pandemics.
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