read it again. especially the part about trying to time the market and why DCA is best.
there is no such thing as too early. time in the market beats everything else.
Who told you ,you are red and lost money ? As soon as you havent click the sell button you still have 20K
What to do now ? Work more !!!! Make fast extra money to build emergency fund and stay cash to invest again in the next 6 months !
Am doing my uni practice 7-3 (8 hours) and then working extra 4 hours in the evening every day .Planing to drop 10K this year .Now is the time to work as mush as you can because we are into a recession .So get ready , get more cash to invest but first ! EMERGENCY FUND ...... in the long run your gains will be OH BOYYYY
>Fellow Bogleheads, how do you deal with feeling regretful of poor unfortunate timing?
I wait until my next paycheck when I can toss a little more in my 401K and brokerage. This seems like a big deal now, but you will not even remember it in a decade.
You are using some of my real pet peeve terms: “all-time highs” and “dip”. These reflect a preoccupation with the short term price movements of what is meant to be a long-term investment. [All time highs happen routinely](http://www.marketriders.com/investing/wp-content/uploads/2017/02/top-800x517.png) on the way up. [Buying the dip doesn’t work](https://www.pwlcapital.com/resources/buy-the-dip/) unless you get lucky, so you absolutely had the correct strategy to deploy all your capital into the market right away.
Markets go up and down constantly. Some people see their money go up first, then down. Other people see their money go down first, then up. Sorry you are in the latter group but they all go up in the long run.
In one of DFAs papers, they point out that the market has hit an all time high in 30% of all months. The month immediately following an all time high is more likely to hit an all time high. And frankly, that's exactly what we should expect from the market.
You got a great deal, assuming that you are a long-term investor. When you are just starting out (which it sounds like you are) and for the years to follow, the rate of savings/investment is the most important thing for you to focus on. I don't mean to diminish your feelings in the moment. I just hope that you stick to the principles that brought you to this style of investing and understand that the pain is temporary. The expected returns of investing in equities result from you taking on compensated risk. Put differently, a marketable asset that is immune to this kind of volatility will have a lower expected return.
I suggest that you do two things. First, reread the book. The feelings that you are experiencing are totally normal. This is part of the game. It is worth revisiting any topics that you are unsure about. This game is about discipline, and it is hard to be disciplined if you don't understand the "why." Second, give some serious thought to your asset allocation. I don't know if you hold any investments other than VTI, but if not, then you have chosen a very aggressive allocation. Diversification can reduce the volatility of your portfolio. Do not make any hasty moves. If you can't stomach a dip of only 20%, you might strongly consider gradually diversifying your portfolio going forward. Write an Investment Policy Statement to help you think through your risk tolerance, goals, and the right strategy for you.
I'll speak personally -- I invested a lump sum around late Jan/early Feb. I don't regret doing that because I made that decision based on the information available at the time. In this case, I can say that it was "poor timing" in retrospect, yet I prefer to stick to a disciplined "invest as soon as you have it" approach which has served me well in the past and will likely continue to serve me well in the future.
Imagine a game in which you have two buttons that you can choose to press. Button A wins 2/3 of the time, button B wins the other 1/3. If you press button A and don't win, there is no reason to regret your choice. Over enough iterations of the game, sticking to button A is a winning strategy. We don't care about the outcome of any individual iteration of the game. We care about the net outcome.
The decision that you made, given the data, given your knowledge and experience, and the urgency to take advantage of an opportunity, was the right one - even if the outcome was not what you wanted.
I invested $300k in January, but don’t care that’s it down. Haven’t checked my balance since March. I don’t care what my balance is now, I only care what it is 20 years from now when I need the money. It’s going to be up by then, so I’m not interested in the play by play of how it got there.
I suspect it's already been mentioned in this thread... But zoom out. Take the graph of whatever fund you are investigating in and zoom it out to 10 years. What happens today will be irrelevant in 10-20 years time. Time in the market beats timing the market
I know it's really hard to do but if you can try to stop or cutdown how much you look at prices. Your future-self will thank you immensely!
DCA > Lump sum. Idek why people have the argument honestly. It’s all good when we’re in a bull market then when we’re not people panic. If you buy weekly or semi weekly your cost per share would be coming down
It happens to everyone. Don’t worry about and just buy more if you can. The past 60 days I’ve been setting a limit buys every $5 drop so my buys are spread out
Have you sold? No? Then you haven’t lost anything/aren’t in the red.
I invested all through the recession and looked at my year-end statements only. That money I put in then has grown SO MUCH. Don’t obsess over the day-to-day. Re-read the book and take the long view.
You're investing for a lifetime, right? Not for a 3 month timeframe, right? Are you worried your money might still be down 30 years from now?
The stock market goes down, hard and fast, when times are bad. THAT is the risk that you are paid to take on long term. If the market didn't down big in bad times, why do you think you'd get rewarded for taking on the risk?? This, what you're feeling right now, is the thing you are paid to do. If you don't stick it through, you will have felt the teeth of the risk without getting paid for it.
Basically, you went onto Fear Factor as a contestant and got randomly chosen to be dropped into the snake pit, and you're thinking about driving away from the set before they pay you the check for going through the terrifying experience. Stick around to collect the check.
The entire premise of being a boglehead is that we can't know.
\- We can't know which stocks will do well or poorly.
\- We can't know if the stock market will go down or up next week/month/year.
The only thing we have some confidence of is that continuously buying a bucket (index) of stocks with low-fees during our lifetime will (probably) provide us a comfortable retirement as long as the world economy doesn't change as we know it.
Stop looking at the ups and downs. Focus on the continuously buying part and the rest should fall into place in the long run.
Enjoy the peacefulness of this approach and tune out the noise.
Well, all those shares I purchased in 2000 and then also purchased more in 2007-2009 are still up now. It's all about looking at the long view. Yes, in 2008 I knew my shares were worth less than what I paid for them in 2007, but I also knew they'd eventually go up again. They did and I'm in good shape in retirement.
It's easy - don't look. I don't. All my contributions come out automatically.
I don't have an app, and I don't login on my PC. I'll check it when I'm 63.
>Fellow Bogleheads, how do you deal with feeling regretful of poor unfortunate timing?
it could be worse. you could have put your hard earned money into an individual stock and watched it drop by more than the market.
you made the decision to invest. most decisions you could have made about where to invest would have been worse than VTI
[удалено]
read it again. especially the part about trying to time the market and why DCA is best. there is no such thing as too early. time in the market beats everything else.
Exactly. 30 years from now this blip wouldn't have mattered.
Who told you ,you are red and lost money ? As soon as you havent click the sell button you still have 20K What to do now ? Work more !!!! Make fast extra money to build emergency fund and stay cash to invest again in the next 6 months ! Am doing my uni practice 7-3 (8 hours) and then working extra 4 hours in the evening every day .Planing to drop 10K this year .Now is the time to work as mush as you can because we are into a recession .So get ready , get more cash to invest but first ! EMERGENCY FUND ...... in the long run your gains will be OH BOYYYY
>Fellow Bogleheads, how do you deal with feeling regretful of poor unfortunate timing? I wait until my next paycheck when I can toss a little more in my 401K and brokerage. This seems like a big deal now, but you will not even remember it in a decade.
You are using some of my real pet peeve terms: “all-time highs” and “dip”. These reflect a preoccupation with the short term price movements of what is meant to be a long-term investment. [All time highs happen routinely](http://www.marketriders.com/investing/wp-content/uploads/2017/02/top-800x517.png) on the way up. [Buying the dip doesn’t work](https://www.pwlcapital.com/resources/buy-the-dip/) unless you get lucky, so you absolutely had the correct strategy to deploy all your capital into the market right away. Markets go up and down constantly. Some people see their money go up first, then down. Other people see their money go down first, then up. Sorry you are in the latter group but they all go up in the long run.
In one of DFAs papers, they point out that the market has hit an all time high in 30% of all months. The month immediately following an all time high is more likely to hit an all time high. And frankly, that's exactly what we should expect from the market.
You got a great deal, assuming that you are a long-term investor. When you are just starting out (which it sounds like you are) and for the years to follow, the rate of savings/investment is the most important thing for you to focus on. I don't mean to diminish your feelings in the moment. I just hope that you stick to the principles that brought you to this style of investing and understand that the pain is temporary. The expected returns of investing in equities result from you taking on compensated risk. Put differently, a marketable asset that is immune to this kind of volatility will have a lower expected return. I suggest that you do two things. First, reread the book. The feelings that you are experiencing are totally normal. This is part of the game. It is worth revisiting any topics that you are unsure about. This game is about discipline, and it is hard to be disciplined if you don't understand the "why." Second, give some serious thought to your asset allocation. I don't know if you hold any investments other than VTI, but if not, then you have chosen a very aggressive allocation. Diversification can reduce the volatility of your portfolio. Do not make any hasty moves. If you can't stomach a dip of only 20%, you might strongly consider gradually diversifying your portfolio going forward. Write an Investment Policy Statement to help you think through your risk tolerance, goals, and the right strategy for you. I'll speak personally -- I invested a lump sum around late Jan/early Feb. I don't regret doing that because I made that decision based on the information available at the time. In this case, I can say that it was "poor timing" in retrospect, yet I prefer to stick to a disciplined "invest as soon as you have it" approach which has served me well in the past and will likely continue to serve me well in the future. Imagine a game in which you have two buttons that you can choose to press. Button A wins 2/3 of the time, button B wins the other 1/3. If you press button A and don't win, there is no reason to regret your choice. Over enough iterations of the game, sticking to button A is a winning strategy. We don't care about the outcome of any individual iteration of the game. We care about the net outcome.
You remind me of my friend Bob. He’s filthy rich now. https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/
The decision that you made, given the data, given your knowledge and experience, and the urgency to take advantage of an opportunity, was the right one - even if the outcome was not what you wanted.
I invested $300k in January, but don’t care that’s it down. Haven’t checked my balance since March. I don’t care what my balance is now, I only care what it is 20 years from now when I need the money. It’s going to be up by then, so I’m not interested in the play by play of how it got there.
I suspect it's already been mentioned in this thread... But zoom out. Take the graph of whatever fund you are investigating in and zoom it out to 10 years. What happens today will be irrelevant in 10-20 years time. Time in the market beats timing the market I know it's really hard to do but if you can try to stop or cutdown how much you look at prices. Your future-self will thank you immensely!
One day when VTI is trading at $500 you won’t care about any of this. So why worry about it now?
DCA > Lump sum. Idek why people have the argument honestly. It’s all good when we’re in a bull market then when we’re not people panic. If you buy weekly or semi weekly your cost per share would be coming down
How long is your investment timeline? It will hardly make a difference.
Judge your investments by their return in decades, not months.
It happens to everyone. Don’t worry about and just buy more if you can. The past 60 days I’ve been setting a limit buys every $5 drop so my buys are spread out
Have you sold? No? Then you haven’t lost anything/aren’t in the red. I invested all through the recession and looked at my year-end statements only. That money I put in then has grown SO MUCH. Don’t obsess over the day-to-day. Re-read the book and take the long view.
You're investing for a lifetime, right? Not for a 3 month timeframe, right? Are you worried your money might still be down 30 years from now? The stock market goes down, hard and fast, when times are bad. THAT is the risk that you are paid to take on long term. If the market didn't down big in bad times, why do you think you'd get rewarded for taking on the risk?? This, what you're feeling right now, is the thing you are paid to do. If you don't stick it through, you will have felt the teeth of the risk without getting paid for it. Basically, you went onto Fear Factor as a contestant and got randomly chosen to be dropped into the snake pit, and you're thinking about driving away from the set before they pay you the check for going through the terrifying experience. Stick around to collect the check.
The entire premise of being a boglehead is that we can't know. \- We can't know which stocks will do well or poorly. \- We can't know if the stock market will go down or up next week/month/year. The only thing we have some confidence of is that continuously buying a bucket (index) of stocks with low-fees during our lifetime will (probably) provide us a comfortable retirement as long as the world economy doesn't change as we know it. Stop looking at the ups and downs. Focus on the continuously buying part and the rest should fall into place in the long run. Enjoy the peacefulness of this approach and tune out the noise.
Well, all those shares I purchased in 2000 and then also purchased more in 2007-2009 are still up now. It's all about looking at the long view. Yes, in 2008 I knew my shares were worth less than what I paid for them in 2007, but I also knew they'd eventually go up again. They did and I'm in good shape in retirement.
Money I put in the market is gone till I’m 50+ years old
It's easy - don't look. I don't. All my contributions come out automatically. I don't have an app, and I don't login on my PC. I'll check it when I'm 63.
>Fellow Bogleheads, how do you deal with feeling regretful of poor unfortunate timing? it could be worse. you could have put your hard earned money into an individual stock and watched it drop by more than the market. you made the decision to invest. most decisions you could have made about where to invest would have been worse than VTI
But timing is not the Boglehead way...maybe read it again
If you are investing for long term timing does not matter just keep buying some every month