Index investing is boring

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IowaFarmBoy
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Re: Index investing is boring

Post by IowaFarmBoy » Fri Oct 27, 2017 4:39 pm

Some excitement remains in rebalancing, strategies to minimize tax, withdrawal plans and so forth.....

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ruralavalon
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Re: Index investing is boring

Post by ruralavalon » Fri Oct 27, 2017 4:58 pm

IowaFarmBoy wrote:
Fri Oct 27, 2017 4:39 pm
Some excitement remains in rebalancing, strategies to minimize tax, withdrawal plans and so forth.....
But that involves work :( , and I am lazy :) .
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

youngpleb
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Re: Index investing is boring

Post by youngpleb » Fri Oct 27, 2017 7:17 pm

I read recently (perhaps in Boglehead's Guide To Investing?) that investing should be one of if not the most boring thing you do. If it's boring, then that's a great indicator that you're doing it correctly.
27. Always learning.

WanderingDoc
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Re: Index investing is boring

Post by WanderingDoc » Fri Oct 27, 2017 11:44 pm

renue74 wrote:
Thu Oct 26, 2017 1:27 pm
In addition to index investing, I have some rental houses, seller financed notes, and some personal promissory notes.

Every month I have to chase down the people who owe me money, while I look at my Vanguard account and don't do that much work.

You could take all your money and invest in other things.
True.. except with the rental houses and seller financed notes, you get, see, and can use the money NOW if you wish.. :D You can use that money to go on a cruise NOW, or buy your kids a bike NOW. Or invest it. Its your choice. Its a real thing. The money in your Vanguard account for most is just digits on a screen until they get older. I guess there is enjoyment to some of looking at said screen. There is only one option when you are in the first 2/3 of your life, keep investing and keep watching those digits. Sounds like a good time :annoyed Of course, when one turns 65, you may not be alive.. you WILL NOT be as vibrant, mobile, or healthy. Those last three things are all but guaranteed. There is a reason people tend to spend less in old age.
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

mlau
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Re: Index investing is boring

Post by mlau » Sat Oct 28, 2017 1:48 am

I thought boring was good?

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ClevrChico
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Re: Index investing is boring

Post by ClevrChico » Sat Oct 28, 2017 8:18 am

I agree.

It's so boring that I have to remind myself how much index investing is returning per month to keep things in perspective. For example, I was considering applying for a job that would be a promotion. It would be a big reach, and I might be working 2x or 3x initially. I calculated the net take home pay to be an extra $1k/month at best. Most likely, an extra $500/month since I'm an internal candidate. Index investing returns much more than that, so should I do it? Index investing is pretty amazing once the money snowballs.

It is completely invisible, and you'll never get street-cred for doing it, unlike a business owner. I can only humble-brag on here. :happy

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TheTimeLord
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Re: Index investing is boring

Post by TheTimeLord » Sat Oct 28, 2017 8:42 am

investing1012 wrote:
Thu Oct 26, 2017 1:00 pm
Anyone else find that the index investing boring. I find no excitement in it.
Money is a boring inanimate object, the possibilities presented by possessing it are not. The same is true of index investing, it is boring but the opportunities it provides are not. Your excitement should come from your life not your investments. At least that is my opinion.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]

Johm221122
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Re: Index investing is boring

Post by Johm221122 » Sat Oct 28, 2017 8:46 am

WanderingDoc wrote:
Fri Oct 27, 2017 11:44 pm


True.. except with the rental houses and seller financed notes, you get, see, and can use the money NOW if you wish.. :D You can use that money to go on a cruise NOW, or buy your kids a bike NOW. Or invest it. Its your choice. Its a real thing. The money in your Vanguard account for most is just digits on a screen until they get older. I guess there is enjoyment to some of looking at said screen. There is only one option when you are in the first 2/3 of your life, keep investing and keep watching those digits. Sounds like a good time :annoyed Of course, when one turns 65, you may not be alive.. you WILL NOT be as vibrant, mobile, or healthy. Those last three things are all but guaranteed. There is a reason people tend to spend less in old age.
We can spend money now if we choose,we just choose not too most of the time

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fishandgolf
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Re: Index investing is boring

Post by fishandgolf » Sat Oct 28, 2017 8:56 am

monkey_business wrote:
Thu Oct 26, 2017 3:30 pm
Running on a treadmill is far more boring than running away from a lion. Alas, the former has some advantages over the latter.
That's funny..... :D

Nowizard
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Re: Index investing is boring

Post by Nowizard » Sat Oct 28, 2017 9:14 am

You have already received numerous responses of a predictable nature that confirm the difference between the process of investing when viewed emotionally versus pragmatically. However, it is an issue that can derail what is accepted by many as a rational, cognitive decision that meets long term goals. Psychologically, there is always a stronger reaction to immediate gratification than delayed gratification, one being emotional, the other more cognitive in nature.

If the above, rather pedantic response is basically accepted, welcome to the crowd of those of us who have not yet become mature enough, even at age 75, to always deal effectively with delayed gratification (no pun intended) related to such an important topic as our financial comfort in retirement! The way this old codger deals with it is by taking a relatively small amount and using it as play money to scratch the itch of a desire for excitement creation. For example, itching earlier in the week led to "investing" a small amount in Amazon. The fact that it went up over 13% yesterday was far more exciting than noting that our relatively sizable portfolio has appreciated approximately 11% YTD, an amount that handily outpaces our informally stated IPS.

Tim

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mickeyd
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Re: Index investing is boring

Post by mickeyd » Sat Oct 28, 2017 2:54 pm

NotWhoYouThink wrote:
Fri Oct 27, 2017 12:24 pm
Index investing wasn't all that boring in 2007-9. It was terrifying. Because it was investing, not because it was index.
I don't recall any terror in my house. As a long-term Boglehead, I must have been out trick-or-treating at the time.
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle

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Sandtrap
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Re: Index investing is boring

Post by Sandtrap » Sat Oct 28, 2017 5:34 pm

Add excitement to life.
Post a lengthy explanation on why you think actively managed funds are better than indexing, hands down. :shock:

AF_Engineer
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Re: Index investing is boring

Post by AF_Engineer » Sat Oct 28, 2017 11:03 pm

Although the OP originally said "boring", perhaps an underlying meaning was "I want more control" (??) A lot of folks, particularly Type A's, like to feel that they are in control and making a difference. To sit back and let something play out without their influence (or the appearance of their influence)....even if the results are very successful....is just simply unsatisfying to them and "boring".

It doesn't affect much of the advice given above, I agree with practically every poster. But if this description fits the OP, perhaps there are some other outlets to scratch that itch while still leaving the bulk of the investment in those staid index funds, on auto-pilot.

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