Author Topic: A well written plan to help detach onself from stock market gyrations  (Read 2187 times)

COguy

  • 5 O'Clock Shadow
  • *
  • Posts: 99
  • Location: Longmont, Colorado
This may seem obvious to most of the regular posters on the investing forums here.  But, for those having trouble detaching themselves from the price changes in their stocks, I think this sums up a solution quite well:

http://www.joshuakennon.com/how-to-remain-detached-from-the-stock-market-and-treat-your-investments-like-private-businesses/

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28271
  • Age: -999
  • Location: Seattle, WA
Re: A well written plan to help detach onself from stock market gyrations
« Reply #1 on: October 30, 2012, 09:52:04 PM »
Great article, thanks for sharing.

One aside: its a lot easier to go "yay, stocks are down, I'm buying them cheap" when you're in the accumulation phase.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

tooqk4u22

  • Handlebar Stache
  • *****
  • Posts: 2275
Re: A well written plan to help detach onself from stock market gyrations
« Reply #2 on: October 31, 2012, 08:27:50 AM »
One aside: its a lot easier to go "yay, stocks are down, I'm buying them cheap" when you're in the accumulation phase.

Good article - but I agree with Arebelspy.  I am still in accumulation mode and fluctuations don't bother me much and with a bit of reallocation/timing may be beneficial. 

But if I was FIRE then I worry how I would handle it (psychologically speaking) say if I have a $1,000,000 nest egg and live off of $40k - 4% SWR and then we get a 15% market drop (not crazy, not unrealistic) and now I have $850,000 and either have to live on $34k or deplete more principal. I don't know if I will be stressed or not....my personality type leads me to beleive I would be stressed on one hand but confident that it will work out on the other due to market recovery, side work, going back to work, etc.