Author Topic: Pull out of VTI ETF?  (Read 2814 times)

Painful Fart

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Pull out of VTI ETF?
« on: February 27, 2020, 11:44:34 AM »
I invested in Vangaurd's VTI ETF.

I have love about $1K over the past two weeks because of the dip.


Not sure if I should pull out or not. Please give me insight! What are you people who are also investing in ETFs doing?

PDXTabs

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Re: Pull out of VTI ETF?
« Reply #1 on: February 27, 2020, 11:46:41 AM »
What are you people who are also investing in ETFs doing?

Buying more with every paycheck.

terran

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Re: Pull out of VTI ETF?
« Reply #2 on: February 27, 2020, 11:48:59 AM »
No. You started investing at an unfortunate moment in time, but don't let that scare you off. Continually adding money to your investments for the long haul is the only way you'll ever build wealth. Consider: https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/

I haven't looked closely enough to know a number, but I'm sure I've lost much more of the last few days, as have many others on this forum.

K-ice

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Re: Pull out of VTI ETF?
« Reply #3 on: February 27, 2020, 12:02:38 PM »
I just bought more today. It could be on a painful slide down, but It was time to invest and my allocation plan said to put the money there.

For the moment I don't sell anything. I just buy more of the lowest to re-balance.

raincoast

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Re: Pull out of VTI ETF?
« Reply #4 on: February 27, 2020, 12:53:36 PM »
What are you people who are also investing in ETFs doing?

Buying more with every paycheck.

This. When the market goes down, you can buy more units at a lower cost. If you sell, you just lock in your losses.

If you are invested in VTI, it will go up and down in the short term but in the long term it should consistently go up, barring some calamity greater than the crashes of 1929 and 2008 that destroys the US economy (in which case, money won’t help you very much).

The Millennial Revolution bloggers started investing in September 2008, and broke even in 2009 because they kept buying while the market was crashing. Now they’re millionaires.

2Birds1Stone

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Re: Pull out of VTI ETF?
« Reply #5 on: February 27, 2020, 02:13:11 PM »
Pull out, it's a flawless strategy.

Telecaster

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Re: Pull out of VTI ETF?
« Reply #6 on: February 27, 2020, 02:49:02 PM »
I invested in Vangaurd's VTI ETF.

I have love about $1K over the past two weeks because of the dip.


Not sure if I should pull out or not. Please give me insight! What are you people who are also investing in ETFs doing?

I'm buying.  Same as always.  But really, BFD.  We're back to where we were in what, October? 

ysette9

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Re: Pull out of VTI ETF?
« Reply #7 on: February 27, 2020, 02:51:59 PM »
Pull out, it's a flawless strategy.
Also an awesome contraceptive strategy

KathrinS

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Re: Pull out of VTI ETF?
« Reply #8 on: February 27, 2020, 02:53:52 PM »
The same thing happened to me the last time there was a market correction, in 2018. I bought a Vanguard fund for the very first time only weeks before the whole market dropped by over 10%. It was a really frustrating first investment experience, but I read here and elsewhere that I should just stick it out and add money as normal, so that's what I did.

By January 2020, my portfolio had gained over 14%, despite the painful start. That's an excellent return for 1 year and 3 months.
 
So, just stick with it for now. If you can, add more money to your investments but most importantly, don't sell anything! In the long term, it will go back up.

ysette9

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Re: Pull out of VTI ETF?
« Reply #9 on: February 27, 2020, 02:55:31 PM »
I invested in Vangaurd's VTI ETF.

I have love about $1K over the past two weeks because of the dip.


Not sure if I should pull out or not. Please give me insight! What are you people who are also investing in ETFs doing?
This is an excellent time to stop paying attention to market girations and instead educate yourself on how the stock market works. This is a good place to start: https://jlcollinsnh.com/stock-series/

You can also play around with data to put the recent hiccups into perspective. A 4% drop or whatever can look really scary when you look at it like this

But it is barely a blip when you zoom out over time

If my app went past five years you would see how truly insignificant it is, and how the ride is bumpy but it always trends upwards.

mies

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Re: Pull out of VTI ETF?
« Reply #10 on: February 27, 2020, 03:52:15 PM »
The same thing happened to me the last time there was a market correction, in 2018. I bought a Vanguard fund for the very first time only weeks before the whole market dropped by over 10%. It was a really frustrating first investment experience, but I read here and elsewhere that I should just stick it out and add money as normal, so that's what I did.

By January 2020, my portfolio had gained over 14%, despite the painful start. That's an excellent return for 1 year and 3 months.
 
So, just stick with it for now. If you can, add more money to your investments but most importantly, don't sell anything! In the long term, it will go back up.

I had a similar experience when I opened my taxable account in January 2018. Buying additional shares at a set interval helped it recover faster. I just buy every two weeks now regardless of the price. Sometimes you catch a break and get a low price, sometimes you buy at all time highs. Today was a lucky day and I got a better deal than my last few purchases.

As you get more experience with investing, big drops won't be scary at all. They'll just look like a good buying opportunity.

v8rx7guy

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Re: Pull out of VTI ETF?
« Reply #11 on: February 27, 2020, 03:58:33 PM »
I invested in Vangaurd's VTI ETF.

I have love about $1K over the past two weeks because of the dip.


Not sure if I should pull out or not. Please give me insight! What are you people who are also investing in ETFs doing?

You have not "lost" anything until you take it out.  The only people who get hurt on roller coasters are those who jump off during the ride.

Ready2Save27

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Re: Pull out of VTI ETF?
« Reply #12 on: February 27, 2020, 07:38:09 PM »
If you are considering pulling out after being invested for two weeks, I think you need to read more to become comfortable with the bumps of staying in the market. You should just continue your planned investment strategy.

MustacheAndaHalf

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Re: Pull out of VTI ETF?
« Reply #13 on: February 27, 2020, 08:06:52 PM »
I invested in Vangaurd's VTI ETF.

I have love about $1K over the past two weeks because of the dip.

Not sure if I should pull out or not. Please give me insight! What are you people who are also investing in ETFs doing?
I think it was Schwab who did a study of the best individual investors - who had the best performance.  The surprise?
The investors who had passed away had the best performance: they never changed their investments.

If you follow your feelings, you will wind up selling low - when everyone is afraid, like you.  And then you'll wait until you're hearing good things about the market from everyone.  But that's more often a market high.  Following what you hear and feel will lead to bad investment decisions - selling low and buying high.

Forget the $1k, it's your starting investment.  Right now stocks are on sale.

I'd recommend you read a book based on past stock market return data, the most famous being "A Random Walk Down Wall Street".  Any of the 12 editions are fine - every library I've visited has a copy, or buy it online.  Once you have more perspective, and information, I hope you find it easier to see things in terms of 4 decades instead of 4 days.

Wintergreen78

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Re: Pull out of VTI ETF?
« Reply #14 on: February 28, 2020, 08:45:53 AM »
Why are you even looking at your balances every two weeks? If you re-balance, you shouldn’t do that more than once or twice a year. Check your balance every year on January 1, re-balance, then ignore your balances for another 12 months. Set your contributions on automatic and get on with your life.

JAYSLOL

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Re: Pull out of VTI ETF?
« Reply #15 on: February 28, 2020, 09:03:26 AM »
What are you people who are also investing in ETFs doing?

Buying more with every paycheck.

This!  I wish I had extra cash right now.  Have to make due with what I can put aside each week. 

TomTX

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Re: Pull out of VTI ETF?
« Reply #16 on: February 28, 2020, 09:30:02 AM »
What are you people who are also investing in ETFs doing?

Buying more with every paycheck.

++

TomTX

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Re: Pull out of VTI ETF?
« Reply #17 on: February 28, 2020, 09:30:24 AM »
Why are you even looking at your balances every two weeks? If you re-balance, you shouldn’t do that more than once or twice a year. Check your balance every year on January 1, re-balance, then ignore your balances for another 12 months. Set your contributions on automatic and get on with your life.

I used to be good at that. Then I got addicted to The Top Is In thread.

KathrinS

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Re: Pull out of VTI ETF?
« Reply #18 on: February 28, 2020, 10:14:26 AM »
The same thing happened to me the last time there was a market correction, in 2018. I bought a Vanguard fund for the very first time only weeks before the whole market dropped by over 10%. It was a really frustrating first investment experience, but I read here and elsewhere that I should just stick it out and add money as normal, so that's what I did.

By January 2020, my portfolio had gained over 14%, despite the painful start. That's an excellent return for 1 year and 3 months.
 
So, just stick with it for now. If you can, add more money to your investments but most importantly, don't sell anything! In the long term, it will go back up.

Exactly. I'm actually really glad I started investing at that time, as it showed me early on  how the stock market works. I usually invest once a month, but I think I'll start going for every two weeks with the current volatility.

I had a similar experience when I opened my taxable account in January 2018. Buying additional shares at a set interval helped it recover faster. I just buy every two weeks now regardless of the price. Sometimes you catch a break and get a low price, sometimes you buy at all time highs. Today was a lucky day and I got a better deal than my last few purchases.

As you get more experience with investing, big drops won't be scary at all. They'll just look like a good buying opportunity.

Wintergreen78

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Re: Pull out of VTI ETF?
« Reply #19 on: February 28, 2020, 11:36:04 AM »
2008 was my favorite year. Work all year, make contributions all year, then at the end of the year realized my balances were less than what they were at the beginning of the year.

This kind of stuff happens, just ignore it and get on with your life and eventually it will come around.

ysette9

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Re: Pull out of VTI ETF?
« Reply #20 on: February 28, 2020, 12:26:41 PM »
2008 was my favorite year. Work all year, make contributions all year, then at the end of the year realized my balances were less than what they were at the beginning of the year.

This kind of stuff happens, just ignore it and get on with your life and eventually it will come around.
I had exactly the same experience! I remember being a little depressed looking at my end of the year 401k statement, then decidedly setting it aside and choosing to not pay attention to it. “Just keep swimming”

I’m retiring this month.

Car Jack

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Re: Pull out of VTI ETF?
« Reply #21 on: February 28, 2020, 12:37:28 PM »
I invested in Vangaurd's VTI ETF.

I have love about $1K over the past two weeks because of the dip.

Not sure if I should pull out or not. Please give me insight! What are you people who are also investing in ETFs doing?
I think it was Schwab who did a study of the best individual investors - who had the best performance.  The surprise?
The investors who had passed away had the best performance: they never changed their investments.

If you follow your feelings, you will wind up selling low - when everyone is afraid, like you.  And then you'll wait until you're hearing good things about the market from everyone.  But that's more often a market high.  Following what you hear and feel will lead to bad investment decisions - selling low and buying high.

Forget the $1k, it's your starting investment.  Right now stocks are on sale.

I'd recommend you read a book based on past stock market return data, the most famous being "A Random Walk Down Wall Street".  Any of the 12 editions are fine - every library I've visited has a copy, or buy it online.  Once you have more perspective, and information, I hope you find it easier to see things in terms of 4 decades instead of 4 days.

It was Fidelity.  I was part of the 2nd best group of investors.  I forgot or ignored my account for a good 20 years.

I don't wish to join the very best, dead investors.

If you have to do anything now, it would be to sell bonds to buy stocks.  To sell stocks would indicate that you should own a target date fund, choose a new password to your account, made of random numbers, letters and symbols you write on a small piece of paper.  Make the change, then eat the paper.

My accounts are down about a hundred grand and I have zero thoughts of pulling out.  I get ESPP shares next week and plan to put all that into equities.

ysette9

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Re: Pull out of VTI ETF?
« Reply #22 on: February 28, 2020, 02:32:49 PM »

If you have to do anything now, it would be to sell bonds to buy stocks.  To sell stocks would indicate that you should own a target date fund, choose a new password to your account, made of random numbers, letters and symbols you write on a small piece of paper.  Make the change, then eat the paper.
This might be the best advice I’ve read yet on these forums. Nicely done.

NWOutlier

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Re: Pull out of VTI ETF?
« Reply #23 on: February 29, 2020, 04:09:21 PM »
I invested in Vangaurd's VTI ETF.

I have love about $1K over the past two weeks because of the dip.


Not sure if I should pull out or not. Please give me insight! What are you people who are also investing in ETFs doing?
This is an excellent time to stop paying attention to market girations and instead educate yourself on how the stock market works. This is a good place to start: https://jlcollinsnh.com/stock-series/

You can also play around with data to put the recent hiccups into perspective. A 4% drop or whatever can look really scary when you look at it like this

But it is barely a blip when you zoom out over time

If my app went past five years you would see how truly insignificant it is, and how the ride is bumpy but it always trends upwards.

I had that question about my stock app too - but I believe you can simply put your finger on the 5 year and slide to the left to make the 10 year show - the "ALL" will show as well

lastly if you put your fingers on two points in time, it will show you the % growth.... 

NWOutlier (steve)

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Re: Pull out of VTI ETF?
« Reply #24 on: March 01, 2020, 11:57:36 AM »
By now, you have probably lost even more.

I'd buy more!

OtherJen

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Re: Pull out of VTI ETF?
« Reply #25 on: March 02, 2020, 05:52:22 PM »
By now, you have probably lost even more.

I'd buy more!

^^^This. If we didn’t need to hold more cash right now (coronavirus has the potential to disrupt our employment), I’d sink more into VTI.