How ya'll coping with portfolio drawdowns?

[73 Reds]

11 hours ago, Lazarus said:

 

This is a crazy way to think about investing. I understand not wanting to risk your nest egg in the market, and your investments shouldn't cause so much anxiety that you can't be present with your family. But that is the beauty of passive investing - just buy an ETF and forget about it. You are making yourself poor by not being in the game (assuming you have time to ride out the swings). I ran the numbers on ETF returns vs. savings returns. 

 

If you had the horrible luck of investing $1,000,000 in an SP500 ETF right at the peak of the GFC, it would have crashed down to $430,000 by March 2009. However, it would have recovered fully by early 2013 and would be worth about $6.7 million today.

 

If you were risk adverse and put that $1,000,000 in a savings account at the actual rates between 2007-2026, it would have grown to about $1.4 million.

Very true.  As much as we all here would like to consider ourselves investing geniuses, the real genius for the masses was Jack Bogle.  Can't go wrong in the long run by DCA'ing into SPY or equivalent.  Anyone who shoo-shoos this approach should check their own long term results against purely passive, set-it-and-forget-it investing.  With a long enough investment horizon there is never a bad time or price point to begin.   

[SharperDingaan]

You can have all the advantages in the world ..... but without independent and high quality guidance, it is pretty much wasted. Most so when in your late 20's, and through most of your 30's; and particularly when getting that advice is often expensive .... but high value add.

 

Daughter has the looks, wants to be a model, and has been successful to date? ... but its a time limited engagement? Maybe it's worth your while to have her talk to those that advise the madame's, trophy wives, and the likes of a Madonna, Paris Hilton, Lady Ga Ga, Taylor Swift, etc ???? Level the playing field .

 

Same thing for those sons/nephews who may be quite the catch , and those thinking of professions/trades careers . Be the engineer, dentist, trades person employee .... but also aim to own the company and/or the practice. Long term thinking, wealth building, and pays for itself if it saves a divorce.

 

What's in your head, not what's in your bank account.

Everything else pretty much takes care of itself.

 

SD

Edited May 2 by SharperDingaan