[Rmtt]

Originally Posted by Run Silent

Yup - the hording cash mentality - aka My Wife when I met her. She is much better, but when we first met, she had about 2 years gross salary sitting in her checking account at 0% interest. I was speechless. lol.

I grew up poor...and watched my parents struggle with things as simple as a tire needing replaced.

Left quite an impact on me. I used to be really bad, but once I seen the impact of how much money I was losing.....I eased up a lot.

But I still hate to owe anyone or anything, and will admit it's been a struggle to learn and leverage where I put my finances!

[Tommysalami]

Thoughts on ETFs that attempt to short the market? SPXU for example. I don't see how this ends anytime soon, and would expect it to have long lasting effects for the next two to three months, especially when the next quarter's financial reports come out.

[rebekahb]

Originally Posted by Rmtt

I grew up poor...and watched my parents struggle with things as simple as a tire needing replaced.

Left quite an impact on me. I used to be really bad, but once I seen the impact of how much money I was losing.....I eased up a lot.

But I still hate to owe anyone or anything, and will admit it's been a struggle to learn and leverage where I put my finances!

My same situation. After growing up like that I swore I would never want to be in the same situation as my parents. They only graduated high school (I know lots of people who have been very successful without a degree). For me, I made sure I had my education completed on a graduate level. When it comes to making big financial decisions I don't do well and panic. My husband has learned to just wait it out until I rationalize everything. It took me quite a while to pull the trigger on my X5 M50i even though my car allowance with my job covers 90%. I do keep a large cash reserve which keeps my anxiety down.

[haagm58]

Originally Posted by rebekahb

My same situation. After growing up like that I swore I would never want to be in the same situation as my parents. They only graduated high school (I know lots of people who have been very successful without a degree). For me, I made sure I had my education completed on a graduate level. When it comes to making big financial decisions I don't do well and panic. My husband has learned to just wait it out until I rationalize everything. It took me quite a while to pull the trigger on my X5 M50i even though my car allowance with my job covers 90%. I do keep a large cash reserve which keeps my anxiety down.

I highly recommend reading "Rich Dad Poor Dad" and "You Are a Badass At Making Money." They may help, and I apologize if you've read them already. Two of my favorite "finance" books for the value they provide. They also help the reader understand the psyche around money.

[RickFLM4]

Sold my remaining DWT a day early, I see.

[rebekahb]

Originally Posted by haagm58

I highly recommend reading "Rich Dad Poor Dad" and "You Are a Badass At Making Money." They may help, and I apologize if you've read them already. Two of my favorite "finance" books for the value they provide. They also help the reader understand the psyche around money.

I haven't read them so thank you for the recommendation!

[haagm58]

Originally Posted by rebekahb

I haven't read them so thank you for the recommendation!

You're very welcome!!

[Tyga11]

Originally Posted by Tommysalami

Thoughts on ETFs that attempt to short the market? SPXU for example. I don't see how this ends anytime soon, and would expect it to have long lasting effects for the next two to three months, especially when the next quarter's financial reports come out.

Proceed with extreme caution

[grocerylist]

Originally Posted by Run Silent

Yup - the hording cash mentality - aka My Wife when I met her. She is much better, but when we first met, she had about 2 years gross salary sitting in her checking account at 0% interest. I was speechless. lol.

Bear market or not that's just not an efficient use of money. It may seem like she is ahead now but over the long-term that mentality will cost her.

[Run Silent]

Originally Posted by grocerylist

Bear market or not that's just not an efficient use of money. It may seem like she is ahead now but over the long-term that mentality will cost her.

yes - although, some points to consider:

a) she lived on about 20% of her income.
b) in addition to the cash hoard, she fully contributed to IRA and 401(k) max limits.
c) she is from a different country where things get out of control quickly and there is no social safety net like SSI. If you broke, you just die.

So I can see where she was coming from.

[Bimmer Nerd]

Originally Posted by Run Silent

Yup - although ETF's are probably still a better plan. Over the last 2 weeks, I've purchased right at $70K worth of additional ETF's, mostly when the DOW was between 20,500 and 23,600. As such, some of these purchases are in the negative right now, since the bottom hasn't been reached yet most likely. Regardless, I am in a strong position to make some solid returns when it does come back.

Primary purchases were QQQ, DIA, VOO, and VOOG.

Originally Posted by Rmtt

Nice.....ETF's have been where I have been buying as well. VOOG and VOO primarily.

But I set a limit on myself of $25K. I'm no expert by any means, but I keep an emergency fund that would last almost 2 years and figured it could be pared down a little.

I still have to get past the "hoarding cash" disorder that I have....although I have gotten much better. I'm overly cautious about everything!!

Just purchased some VOO as well. Will purchase some QQQ if the market keeps going down.

Are you guys picking up any individual stocks? So far I've got: Shell B, DISney, Lyft, UPS.

Thinking about Tesla and Apple. I think Tesla is still over valued at this time, but can be a good buy if it dips under $300's.

[RickFLM4]

I bought a small amount of Walmart lower than where it is now. Also bought some Walgreens around where it is now. Otherwise sticking with ETFs (bought a little XLU and XLP).

[Run Silent]

Originally Posted by Bimmer Nerd

Just purchased some VOO as well. Will purchase some QQQ if the market keeps going down.

Are you guys picking up any individual stocks? So far I've got: Shell B, DISney, Lyft, UPS.

Thinking about Tesla and Apple. I think Tesla is still over valued at this time, but can be a good buy if it dips under $300's.

Nice - QQQ seems rather leveraged, so I took a bath when I bought most of it between $181 and $190, but considering it was at $237 just 2 months ago, I stand to make a lick when it comes back some day, as I am currently holding 85 shares.

For individual stocks - I strongly advise against it - just too risky. I don't feel you get enough upside for the downside. There are always exceptions, but overall - it typically doesn't work out for the marginal investor.

[Ngilbe36]

Bought into UPRO, SPXL, and VOO yesterday. I figure it might go lower short term, but its definitely going higher long. Now we wait.

[Run Silent]

Originally Posted by Ngilbe36

Bought into UPRO, SPXL, and VOO yesterday. I figure it might go lower short term, but its definitely going higher long. Now we wait.

Haha - reminded me of this clip from Family Guy. "And now we play the waiting game"

[Rmtt]

Originally Posted by Run Silent

Nice - QQQ seems rather leveraged, so I took a bath when I bought most of it between $181 and $190, but considering it was at $237 just 2 months ago, I stand to make a lick when it comes back some day, as I am currently holding 85 shares.

For individual stocks - I strongly advise against it - just too risky. I don't feel you get enough upside for the downside. There are always exceptions, but overall - it typically doesn't work out for the marginal investor.

Same here. I can't say I haven't been tempted...but I talk myself out of it. Now if Tesla were to get down close to the $2XX range...I would probably throw caution to the wind.

[Bimmer Nerd]

Originally Posted by Rmtt

Same here. I can't say I haven't been tempted...but I talk myself out of it. Now if Tesla were to get down close to the $2XX range...I would probably throw caution to the wind.

I agree with you and Run Silent. 95% of my portfolio is in ETF's and TDIF. I just invest in some individual stocks in times like these or if I feel the company will do well after a bad run (think of chipotle and their salmonella outbreak).

[haagm58]

Any devout Bogleheads in here?

[Tyga11]

Originally Posted by haagm58

Any devout Bogleheads in here?

Present

[haagm58]

Originally Posted by Tyga11

Present

I read Jack Bogle's book and agree with his philosophy, I just need to do a better job putting it into practice. How have you found it working for you?

[corn18]

Originally Posted by haagm58

Any devout Bogleheads in here?

Not sure about devout but I consider myself a boglehead

Originally Posted by haagm58

I read Jack Bogle's book and agree with his philosophy, I just need to do a better job putting it into practice. How have you found it working for you?

Depends on how you define working. I used to buy a little bit of every fund offered in my 401k every 2 weeks. That was 24 different funds. Figured that was good diversification. I also bought a lot of naked puts. And I bought individual stocks on a whim and never held them longer than a year because I chickened out. I was an emotional investor and lagging the market.

Now that I am a boglehead, my investment policy statement is very simple. I am guaranteed a market average return which is better than 90% of fund managers over any 10+ year period. And I don’t futz is with my investments much. This bear has my asset allocation a bit bond heavy so I am switching my contributions from bonds to stocks. That’s about as complex as my investment decisions get these days.

By my definition, it is working for me.

[Ngilbe36]

Just dropped more money in on SPXL, UPRO, and VOO. Spin that wheel!