Author Topic: So, it's been 1 year since I started index funds...  (Read 3760 times)

fizzgig

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So, it's been 1 year since I started index funds...
« on: November 24, 2015, 08:28:48 AM »
I put in about 100K, almost my entire savings, and, so far, looks like I'm down 2 grand. Not a very encouraging start. Should I be nervous? I guess I'm looking for an encouraging perspective that confirms that I really am doing the right thing for building wealth for 20 years or so down the road.

GoldenStache

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Re: So, it's been 1 year since I started index funds...
« Reply #1 on: November 24, 2015, 08:33:13 AM »
You just picked a rough year to start.  Reinvest your dividends in Dec, and keep adding to the pot.  Next year (or the year after) you will be up, and eventually way up. 

Hope you are in something like VTSAX.

innkeeper77

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Re: So, it's been 1 year since I started index funds...
« Reply #2 on: November 24, 2015, 08:42:16 AM »
Market timing is rather close to impossible, but if itbwere, you would want to buy when 'Mr market" is depressed. By continuing to buy, you have been doing just that! In the accumulation phase, the cheaper each share is the better. In fact, this current slump means you will likely have far more money in the end than if you were starting during an upswing! Keep it up :)

Exflyboy

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Re: So, it's been 1 year since I started index funds...
« Reply #3 on: November 24, 2015, 09:20:07 AM »
And you do get about 2% in dividends.. so you may not have got a full year's worth yet?

Yes you are down but that is the nature of stock investing.. If you have dumped your 100k in the year or 3 years before you'd be WAY ahead.

In fact if you had dropped your $100k into the S&P 500 at the beginning of 2013 you would have had almost $151k at the beginning of this year.

The point is you have a LOOONG time frame, stop looking at the numbers and keep throwing money in there. Eventually it will come in big.

Cookie78

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Re: So, it's been 1 year since I started index funds...
« Reply #4 on: November 24, 2015, 09:21:01 AM »
Market timing is rather close to impossible, but if itbwere, you would want to buy when 'Mr market" is depressed. By continuing to buy, you have been doing just that! In the accumulation phase, the cheaper each share is the better. In fact, this current slump means you will likely have far more money in the end than if you were starting during an upswing! Keep it up :)

I'm in nearly the exact same spot as fizzgig, starting a year ago. I tell myself this advice every time I get the chance. :p

Easye418

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Re: So, it's been 1 year since I started index funds...
« Reply #5 on: November 24, 2015, 09:40:28 AM »
I thought the rule of thumb is look at your index funds seriously once every 10 years for performance.   Not including rebalancing.

arebelspy

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Re: So, it's been 1 year since I started index funds...
« Reply #6 on: November 24, 2015, 09:45:21 AM »
Sounds like you need to do some more reading and learning. You'll be flat or lose money only a little less than half the time.  But since you'll make money more than half the time, it'll grow over time.

No. You should not be nervous at all. You should be glad it's down, because if it was up, the money you're investing today would be buying you less shares.

People accumulating WANT the market to go down.  Only people withdrawing, and not investing (retirees) want the market to go up.
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human

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Re: So, it's been 1 year since I started index funds...
« Reply #7 on: November 24, 2015, 10:02:40 AM »
Glad I saw this thread, I'm down too. First year really trying to save have 25k now in vanguard etfs and I'm down about 2% as well. Part of the problem is allocation (way too much VDU and VCN) because I took a break in investing to pay off a vacation fiasco. Anyway good to hear I'm not alone, started buying again.