Author Topic: I just bought 2 days per year of free life, indefinitely. 363 to go.  (Read 70043 times)

happy

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #200 on: November 17, 2017, 01:20:43 AM »
I like it too. I second the idea of reversing the colours...red makes me think of an empty petrol tank.
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AnswerIs42

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #201 on: November 17, 2017, 03:42:39 AM »
Nice visualization!

Minor bug - if you have enough savings to put you in the red "free" section, the text below loops and says things like "This means that your savings could support you (without you having to work) through February 6 each and every year".

Canadian Ben

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #202 on: November 17, 2017, 05:42:35 AM »
I like the motivational little text box at the bottom.

+1 for switching red and green.

CCCA

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #203 on: November 17, 2017, 11:47:13 AM »
Great idea.
However I associate red with negative and hair on fire. Maybe inverse the color scale? Having 0 days of freedom is an emergency. Having 365 days of freedom is very much green!


Nice visualization!

Minor bug - if you have enough savings to put you in the red "free" section, the text below loops and says things like "This means that your savings could support you (without you having to work) through February 6 each and every year".


Thanks everyone for the positive feedback.  And for the suggestion to switch the color scale.  I did that and I agree it looks better. 


Answeris42, thanks for the bug report.  I fixed that as well. 

arebelspy

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #204 on: November 17, 2017, 07:27:27 PM »
Awesome tool!

It would also be cool to see a graphic of a calendar with days shaded (all white where not done, diagonal light green stripes though the completed days or something?).

Here's some potential ones to start with:
http://www.samplewords.com/wp-content/uploads/2015/12/2016-annual-calendar.png
https://cdn.vertex42.com/calendars/images/yearly-calendar-template-chamfer.png
http://printablecalendar4u.com/wp-content/uploads/2016/08/Annual-Calendar-2019-Portrait.jpg
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CCCA

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #205 on: November 17, 2017, 10:14:11 PM »
Awesome tool!

It would also be cool to see a graphic of a calendar with days shaded (all white where not done, diagonal light green stripes though the completed days or something?).

Here's some potential ones to start with:
http://www.samplewords.com/wp-content/uploads/2015/12/2016-annual-calendar.png
https://cdn.vertex42.com/calendars/images/yearly-calendar-template-chamfer.png
http://printablecalendar4u.com/wp-content/uploads/2016/08/Annual-Calendar-2019-Portrait.jpg


Hi arebelspy, that is a good idea.  It occurred to me as I tried to think of a way to visualize it. I guess one issue that came up in my head is that I'd have to pick a specific years' calendar.  But I will think about it some more to see if I can think of a way to put it together.

arebelspy

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #206 on: November 18, 2017, 06:25:59 AM »
Awesome tool!

It would also be cool to see a graphic of a calendar with days shaded (all white where not done, diagonal light green stripes though the completed days or something?).

Here's some potential ones to start with:
http://www.samplewords.com/wp-content/uploads/2015/12/2016-annual-calendar.png
https://cdn.vertex42.com/calendars/images/yearly-calendar-template-chamfer.png
http://printablecalendar4u.com/wp-content/uploads/2016/08/Annual-Calendar-2019-Portrait.jpg


Hi arebelspy, that is a good idea.  It occurred to me as I tried to think of a way to visualize it. I guess one issue that came up in my head is that I'd have to pick a specific years' calendar.  But I will think about it some more to see if I can think of a way to put it together.
Yeah, pick 2018, and update once/yr?

Or just don't label the days of the week at the top. Sure, people could guess it from where the placement of the numbers are, but it's good enough.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (occasionally) blog at AdventuringAlong.com.
You can also read my forum "Journal."

Simpli-Fi

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #207 on: November 18, 2017, 11:14:24 AM »
I think your SWR is backwards.  I upped it to 10% and pegged the speedometer, when it should have gone the other way.

CCCA

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #208 on: November 18, 2017, 11:46:15 AM »
I think your SWR is backwards.  I upped it to 10% and pegged the speedometer, when it should have gone the other way.


That's how the calculation is supposed to work (at least in my head).  If you are willing to spend 10% of your savings, then you don't need to save as much money.  You would only need to save 10x your annual spending instead of 25x for a 4% WR. 


This calculator doesn't say anything about whether 10% is a good idea (it's not) but it lets you put in whatever number you want.  It's not really a safe withdrawal rate, I suppose, but more of a withdrawal rate.  It doesn't determine "safety". 

WhiteTrashCash

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #209 on: November 18, 2017, 02:59:10 PM »
Recently, my wife and I improved our communication when it comes to our finances and I've successfully convinced her to invest with Vanguard, so combined our resources bring us up to April 15th. Not including the equity from our house, which we plan to sell when we FIRE. That makes me feel pretty good about things. :-)

Road2Freedom

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #210 on: November 19, 2017, 04:33:17 PM »
Hi everyone,

I really liked this thread so I went ahead and made an interactive javascript calculator that makes the same calculations.  How many "freedom days" have you saved up?  I was trying to think of a cool visual for it and came up with sort of a speedometer thingy.

http://engaging-data.com/freedom-calculator/

I hope you can check it out as I'm learning web programming mostly as a hobby.  If you have any thoughts, I'm happy to hear any criticisms, changes, or extensions you might suggest.

Thanks!




Very cool!  Thanks for creating and sharing it.

Simpli-Fi

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #211 on: November 20, 2017, 04:00:11 AM »
this is why I was confused.........
====================================================================================

Your $100,000 in savings gives you approximately 365 days of freedom per year (at your current spending level of $100,000 per year).

This means that your savings could support you (without you having to work) through December 31 each and every year.
An additional day of freedom requires you to increase your savings by $274.

Congratulations! You have earned an entire years worth of freedom each and every year (actually 1.0 years worth). You are at a point where you do not have to work to support your spending needs.

ACyclist

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #212 on: November 20, 2017, 06:49:20 AM »
This is fantastic.  Everyone here is highly motivating us. 

We saw the light a little late here. Things are happening now.

dandarc

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #213 on: November 20, 2017, 10:15:27 AM »
this is why I was confused.........
====================================================================================

Your $100,000 in savings gives you approximately 365 days of freedom per year (at your current spending level of $100,000 per year).

This means that your savings could support you (without you having to work) through December 31 each and every year.
An additional day of freedom requires you to increase your savings by $274.

Congratulations! You have earned an entire years worth of freedom each and every year (actually 1.0 years worth). You are at a point where you do not have to work to support your spending needs.
So you put in 100% for your SWR.

Simpli-Fi

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #214 on: November 20, 2017, 10:53:25 AM »
I guess my point was, there are not enough input variables.  Maybe Iím not understanding the assumptions.

Another example with the same result.

Your $2,400,000 in savings gives you approximately 365 days of freedom per year (at your current spending level of $24,000 per year).
This means that your savings could support you (without you having to work) through December 31 each and every year.
An additional day of freedom requires you to increase your savings by $6575.

CCCA

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #215 on: November 20, 2017, 10:57:46 AM »
this is why I was confused.........
====================================================================================

Your $100,000 in savings gives you approximately 365 days of freedom per year (at your current spending level of $100,000 per year).

This means that your savings could support you (without you having to work) through December 31 each and every year.
An additional day of freedom requires you to increase your savings by $274.

Congratulations! You have earned an entire years worth of freedom each and every year (actually 1.0 years worth). You are at a point where you do not have to work to support your spending needs.
So you put in 100% for your SWR.


That is my suspicion as well.  Can you tell me what parameters you put into the three boxes to get the above result?

dandarc

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #216 on: November 20, 2017, 02:13:05 PM »
I guess my point was, there are not enough input variables.  Maybe Iím not understanding the assumptions.

Another example with the same result.

Your $2,400,000 in savings gives you approximately 365 days of freedom per year (at your current spending level of $24,000 per year).
This means that your savings could support you (without you having to work) through December 31 each and every year.
An additional day of freedom requires you to increase your savings by $6575.
You're not including ALL of the inputs in your bug reports.  If you put in 1% as your SWR, this is the expected result.  If anything, seems like there are too many inputs - if the 4% withdrawal rate was just hard-coded, there would be no confusion, but then, some of us are planning on 3% or 5% or 8%, so then we couldn't try out different withdrawal rates.

This "days per year bought / still needed" is very simple - it is the fraction of your "number" that you already have times 365 (number of days in a year).  So if you're planning on a 4% withdrawal rate for a 40K / year spend in retirement, your number is $1,000,000 ($40,000 / .04).  If you currently have $500,000, then you've got 50% of the $1,000,000 required number.  So you've got 182.5 days per year covered forever.

This isn't C-Firesim - it is a simple calculator for the metric that this particular thread proposes.

CCCA

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #217 on: November 20, 2017, 03:11:55 PM »
I guess my point was, there are not enough input variables.  Maybe Iím not understanding the assumptions.

Another example with the same result.

Your $2,400,000 in savings gives you approximately 365 days of freedom per year (at your current spending level of $24,000 per year).
This means that your savings could support you (without you having to work) through December 31 each and every year.
An additional day of freedom requires you to increase your savings by $6575.
You're not including ALL of the inputs in your bug reports.  If you put in 1% as your SWR, this is the expected result.  If anything, seems like there are too many inputs - if the 4% withdrawal rate was just hard-coded, there would be no confusion, but then, some of us are planning on 3% or 5% or 8%, so then we couldn't try out different withdrawal rates.

This "days per year bought / still needed" is very simple - it is the fraction of your "number" that you already have times 365 (number of days in a year).  So if you're planning on a 4% withdrawal rate for a 40K / year spend in retirement, your number is $1,000,000 ($40,000 / .04).  If you currently have $500,000, then you've got 50% of the $1,000,000 required number.  So you've got 182.5 days per year covered forever.

This isn't C-Firesim - it is a simple calculator for the metric that this particular thread proposes.


thanks for providing tech support!

Jaayse

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #218 on: December 10, 2017, 01:34:43 PM »
April 14 - 66.9
July 24 - 72.32
October 1 - 85.18
November 1 - 89.49
December 1 - 91.60

A slow month in November, but I still made it to around April 2nd!
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CCCA

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #219 on: December 10, 2017, 11:10:25 PM »
April 14 - 66.9
July 24 - 72.32
October 1 - 85.18
November 1 - 89.49
December 1 - 91.60

A slow month in November, but I still made it to around April 2nd!


nice progress!  You are a quarter of the way there already (one whole season!).  And you've almost achieved a whole month in just 7.5 months.  At that rate, you'll be done in no time.

Jaayse

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #220 on: December 11, 2017, 11:43:37 AM »
April 14 - 66.9
July 24 - 72.32
October 1 - 85.18
November 1 - 89.49
December 1 - 91.60

A slow month in November, but I still made it to around April 2nd!


nice progress!  You are a quarter of the way there already (one whole season!).  And you've almost achieved a whole month in just 7.5 months.  At that rate, you'll be done in no time.

Thanks!  I never really thought of it that way... I suppose extrapolating out that would put me at 5.6 years from FIRE!  I did have some extra help with my numbers in this time period.  Since I moved I got some extra money in dislocation allowance and move in housing allowance (MIHA) and I also got my tax return of almost 5k, but hopefully my money will earn me even more to help me keep it up!
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TexasRunner

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #221 on: December 11, 2017, 12:41:20 PM »
I'm in on this!!!!  A genius way to track a difficult number/concept.

Also note, various 'waypoints' can be reached anlong the year...  IE January 15th is probably base-level FU money, February 15th is I can always say no level FU money, "I can help a friend in a crisis" is probably around March or April, "My investments save more than I do" happens on June 1st and the recognition that the dates are exponentially quick (typically) as one proceeds through the year (due to passive income return...).

Also, many on this forum could note how many "Years" they have bought, because their savings have exceeded 4% or even 3% in some cases.  As in, Example_Person has 2 years and 43 days and is trying to give as much away as reasonable to get back down to 1 year and 6 months.

Cool idea, I'm gonna share this within my FI circle.
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Slow&Steady

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #222 on: December 11, 2017, 12:53:47 PM »
At $60k/year and only looking a 401k/IRA

Feb-17 = 17 days
Sept-17 = 21.7 days
Oct-17 = 22.05 days
Dec-17 = 23.03 days

There should be a lot of changes in the next year; baby #2, SL paid off, new job (fingers crossed), DH company continue to grow, etc.  Some of these might not be so great for this number in the short term (baby #2, SL pay off) but we will see.  Hopefully, this number starts speeding up (increased contributions & compounding interest) because 0.5 days per month = an unacceptable  amount of work left for me. 

beedub

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #223 on: December 27, 2017, 12:10:22 PM »
I love this way of looking at it. My spreadsheet is getting really wide, but I added it. I'm pitifully low for my age, but I'm on the right track after spending ferociously in my 20s and first half of my 30s.

Just crossed 30 days of freedom paid for.

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« Last Edit: December 27, 2017, 04:33:41 PM by beedub »

sisto

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #224 on: December 28, 2017, 11:54:19 AM »
This is definitely a cool new way to look at it. I also liked the idea someone posted on compounding and how stealing from yourself now really robs your future self. While I've always known this seeing the numbers is very eye opening. This new calculation confirms what I already knew which is that I'm halfway there. I sometimes wish I lived in a LCOL area instead of where I live so I can be done now, but this is where my friends and family are and you can't beat the weather. I've still got at least 6 more years of work, but I plan to not work too hard and try to travel at least once a year to somewhere new.
Glad to report I'm not at 234 days and I think 3.5 years left. Really been hitting burn out lately and trying to wind down some.
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Rhoon

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #225 on: December 31, 2017, 12:06:46 PM »
Not a bad year:

Year   Days Purchased
2016   64.31
2017   91.28

An Increase of 27 days. 3 Months down, 9 more to go.

WhiteTrashCash

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #226 on: December 31, 2017, 01:39:23 PM »
As of the end of 2017, I am now up to May 7th. Hooray!

Jaayse

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #227 on: January 01, 2018, 03:36:25 AM »
April 14 - 66.9
July 24 - 72.32
October 1 - 85.18
November 1 - 89.49
December 1 - 91.60
January 1 - 94.16

My stash can support me until April 4th!  I now have a calendar that tracks my progress on my refrigerator.  Hopefully it will keep me motivated!
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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #229 on: January 02, 2018, 12:20:33 PM »
As on January 1st, 2018 I am at January 26th!

Hopefully by January 1st, 2019 I will be about Mid-February.  Definitely excited to see things start going exponential as well...
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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #230 on: January 02, 2018, 05:18:00 PM »
Earlier I said that I had made it to December, but I was using my home equity.  I think it would be best to not use my home equity, as I will not be selling my house anytime soon.

My goal for my stash is $750K (cash and investments only) and I am currently at $656K, which puts me at November 15th.  :)

newgirl

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #231 on: January 02, 2018, 07:54:57 PM »
This is great!! I'm going to use this metric for my 2018 overarching challenge - how many days of freedom can I buy in 2018?

I'm a very new Mustachian so right now I have only about $15,000 saved, and I'm using a $35,000 FIRE estimate for annual spending... means I have bought myself 6 days of freedom: 35,000 x 25 = 875,000/365 = $2397 (round to $2400)

Right now I'm focused on selling unnecessary yet reasonably valuable crap from around my house. I've made close to $700 so far, if I can find $1700 more worth of crap then selling MY OWN GARBAGE STUFF THAT I DON'T NEED will buy me one day of freedom forever.

I LOVE IT!

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #232 on: January 03, 2018, 03:40:24 AM »
I love this metric

Later this year I'm finally going to be in a position, I think, to buy my first bunch of ETF (I have a mortgage and superannuation....). I'm thinking I'm going to make a card up with 365 days on it (doesn't have to be months, just 365 squares), and it can go on the back of my smartphone. Every time I buy, I get to cross out a square (or more).  Simple, always with me in my pocket. This kind of visual is what I need.


Slow&Steady

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #233 on: January 03, 2018, 08:35:30 AM »
At $60k/year and only looking a 401k/IRA

Feb-17 = 17 days
Sept-17 = 21.7 days
Oct-17 = 22.05 days
Dec-17 = 23.03 days

There should be a lot of changes in the next year; baby #2, SL paid off, new job (fingers crossed), DH company continue to grow, etc.  Some of these might not be so great for this number in the short term (baby #2, SL pay off) but we will see.  Hopefully, this number starts speeding up (increased contributions & compounding interest) because 0.5 days per month = an unacceptable  amount of work left for me.

At $60k/year and only looking a 401k/IRA.  Edited below to look at end of month instead of beginning of month.

Jan-17 = 17 days
Aug-17 = 21.7 days
Sept-17 = 22.05 days
Nov-17 = 23.03 days
Dec-17 = 23.71 days


Bird In Hand

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #234 on: January 04, 2018, 08:15:46 AM »
Assuming 4% SWR, $75k annual spending, and 4% post-inflation returns going forward, then our investable assets cover...

234 days (through August 22nd each year) if we stop working today.

253 days (through Sep 10th each year) if we stop working today.

We gained 19 days of freedom per year over the last 3 months!  Only ~1.5 days of that came from savings -- the rest was market returns.  But there's some distortion here due to large end-of-year dividends in the Vanguard retirement accounts.

In 2017 we gained 39 days of freedom per year.  I know that's unlikely to repeat in 2018, but it sure feels satisfying right now.
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EfficiencyNerd

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #235 on: January 04, 2018, 02:03:54 PM »
Just wanted to chime in that this is an awesome idea, and I'm definitely going to add it to my tracking spreadsheet (my own heavily-modified version of "one sheet to rule them all"). It will be cool to track how many additional days of freedom I've gained each month.

So far, I'm looking at only 14 days of freedom at 4% withdrawal rate... but not bad for only really having started hard-core saving in August of last year.

CCCA

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #236 on: January 04, 2018, 05:48:17 PM »
I've modified the calculator code so that you can sort of save and share specific instances of a calculation.  Just modify the values at the end of the URL, like so:
Code: [Select]
http://engaging-data.com/freedom-calculator/?sav=500000&spend=40000&wr=3.3This is read into the calculator.  However, one thing I haven't figured out how to do (yet) is make it so the values in the URL will automatically adjust to the latest ones entered into the calculator boxes.

Anyway, hope this is helpful. . .

Roothy

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #237 on: January 10, 2018, 03:55:37 PM »
This is insane:

I just did my monthly update of my "days bought" measure and... I bought FOURTEEN DAYS in the last month.  This market run-up has been *bonkers*.  That blistering pace cannot last, of course, but man it's nice while it does. 

I'm up to Nov. 4!

CCCA

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #238 on: January 10, 2018, 05:28:55 PM »
This is insane:

I just did my monthly update of my "days bought" measure and... I bought FOURTEEN DAYS in the last month.  This market run-up has been *bonkers*.  That blistering pace cannot last, of course, but man it's nice while it does. 

I'm up to Nov. 4!


Wow, that's great.  At that pace, you'll be done within a few months!

2Birds1Stone

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #239 on: January 11, 2018, 06:42:27 AM »

Roothy

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #240 on: January 11, 2018, 10:48:44 AM »
This is insane:

I just did my monthly update of my "days bought" measure and... I bought FOURTEEN DAYS in the last month.  This market run-up has been *bonkers*.  That blistering pace cannot last, of course, but man it's nice while it does. 

I'm up to Nov. 4!

Wow, that's great.  At that pace, you'll be done within a few months!

If the pace of my savings and market gains goes next year like it has for the last twelve months, then I hit my number in about 10 months.  But it can't POSSIBLY continue like this.  (Can it?)  Wheeeeee!!!

CCCA

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #241 on: January 11, 2018, 10:59:21 AM »
This is insane:

I just did my monthly update of my "days bought" measure and... I bought FOURTEEN DAYS in the last month.  This market run-up has been *bonkers*.  That blistering pace cannot last, of course, but man it's nice while it does. 

I'm up to Nov. 4!

Wow, that's great.  At that pace, you'll be done within a few months!

If the pace of my savings and market gains goes next year like it has for the last twelve months, then I hit my number in about 10 months.  But it can't POSSIBLY continue like this.  (Can it?)  Wheeeeee!!!


It can go insanely fast.  Once you are close to your FIRE number, small variations in returns have a huge impact on annual networth gains.  for example if you are at 20x annual savings (and trying to get to 25x), a good year on the stock market (e.g. 20+%) will get you an additional 4x, taking you to 24x. 


That's the reason we blew by our "number" in 2017.




Roothy

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #242 on: January 11, 2018, 02:27:55 PM »
Yes, it's amazing how much faster it goes the closer you get.  For those of you early in the process, keep this in mind!  It accelerates!

Did you take risk off the table when you hit your number?

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #243 on: January 11, 2018, 03:37:35 PM »
It can also decelerate at a gut wrenching pace.

We all (mostly) suffer from recency bias during this last bull.

Being at 20X and having a bad market crash take you to 15X while you save 75% of your income will be an interesting feeling to say the least.

 

saving_dutchman

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #244 on: January 12, 2018, 12:54:56 AM »
It can also decelerate at a gut wrenching pace.

We all (mostly) suffer from recency bias during this last bull.

Being at 20X and having a bad market crash take you to 15X while you save 75% of your income will be an interesting feeling to say the least.

It must be scary to see your net worth dropping like a brick while still saving and trying to increase it. Because I've only been investing for the past 4 years there have only been a few minor dips in my portfolio but nothing major.

CCCA

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #245 on: January 12, 2018, 01:14:57 AM »
It can also decelerate at a gut wrenching pace.

We all (mostly) suffer from recency bias during this last bull.

Being at 20X and having a bad market crash take you to 15X while you save 75% of your income will be an interesting feeling to say the least.

It must be scary to see your net worth dropping like a brick while still saving and trying to increase it. Because I've only been investing for the past 4 years there have only been a few minor dips in my portfolio but nothing major.


I'm old enough to have lived (and invested) through the dot-com crash in 2000 and the 2008 recession.  Yes it is gut wrenching but in the past it has always bounced back.  Hopefully, future crashes will also follow this pattern.

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #246 on: January 12, 2018, 07:27:18 AM »
It can also decelerate at a gut wrenching pace.

We all (mostly) suffer from recency bias during this last bull.

Being at 20X and having a bad market crash take you to 15X while you save 75% of your income will be an interesting feeling to say the least.

It must be scary to see your net worth dropping like a brick while still saving and trying to increase it. Because I've only been investing for the past 4 years there have only been a few minor dips in my portfolio but nothing major.


I'm old enough to have lived (and invested) through the dot-com crash in 2000 and the 2008 recession.  Yes it is gut wrenching but in the past it has always bounced back.  Hopefully, future crashes will also follow this pattern.

You are a small percentage of the forum I would guess.

I wonder how it would feel for someone who has only invested through a bull run to experience 2008 all over again, didn't stocks take ~4.5 years to return to pre crash valuations? That's a long time to wait for newer investors (mentally, in the long run if they keep investing their portfolio value should recover faster).

I'm in the later pool, my investing career only began in 2012, so I am curious to see how I react.

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #247 on: January 12, 2018, 11:06:02 AM »
It can also decelerate at a gut wrenching pace.

We all (mostly) suffer from recency bias during this last bull.

Being at 20X and having a bad market crash take you to 15X while you save 75% of your income will be an interesting feeling to say the least.
Just keep telling yourself you are buying low, you are buying low, you are buying low...

Roothy

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #248 on: January 12, 2018, 11:27:14 AM »
Yes, it feels bad when you put in monthly contributions only to have them "disappear" the next day.... month after month.  That has happened to me a handful of times over my investing life, which started in 2005.  On the other hand, tax loss harvesting REALLY, REALLY helps with the psychology of it.  Or it did for me, anyway. 
 

saving_dutchman

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Re: I just bought 2 days per year of free life, indefinitely. 363 to go.
« Reply #249 on: January 15, 2018, 08:49:35 AM »
Yes, it feels bad when you put in monthly contributions only to have them "disappear" the next day.... month after month.  That has happened to me a handful of times over my investing life, which started in 2005.  On the other hand, tax loss harvesting REALLY, REALLY helps with the psychology of it.  Or it did for me, anyway.
I'm from the Netherlands and we don't have tax loss harvesting unfortunately. We do however have this rule where we pay 1% in taxes annually on any net worth above 25Äk. So devaluation in stocks lead to a lower tax bill...

When the  inevitable downturn comes we will get a support topic going to keep us on track!