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  2. Ceci Dominguez celebrated her 67th birthday alone in her home in the Elysian Valley neighborhood of Los Angeles. The threat of coronavirus kept her from friends and family—and from the part-time jobs and informal gigs that keep her frugal budget balanced. https://www.msn.com/en-us/money/retirement/coronavirus-shock-is-destroying-americans-retirement-dreams/ar-BB11JqJB?li=BBnb7Kz
  3. A great easy to understand video suitable as a reminder to all of us that it's probably not the end of the investing world for us . Thanks for sharing such good advice. Those looking for a bottom to this market sell off may be disappointed to learn that mega one day rallies like the ones we've experienced are typically NOT the start of a recovery. See Chart Below. We must be more encouraged by days and weeks and months when investors take modest bites at risky investments than in great mouthfuls. I'm glad your video mentioned Dollar Cost Averaging as one good method of slowly easing back in. We are not out of the woods yet. Unemployment rates are soaring but at the same time, there is money to be made in this new market or further money lost if you are not careful. Just like we should not ease up on this pandemic we shouldn't jump to conclusions that the market drop is over. Note: Everyone's situation is different.Anything I write on this website is my personal opinion and should not be considered investment advice. Please do your own research. Quote
  4. Thanks for the tip on this ebook, Tony. I subscribe to the NY Times, but it's nice to have this info in one place.
  5. Hey Dan, thanks to both you and Scott for the discussion+information at 7am. Part of the best day since 1933: https://www.msn.com/en-us/money/markets/dow-soars-11percent-in-best-day-since-1933-as-stimulus-deal-nears/ar-BB11DCB1 Take Care!
  6. Hi all, Sorry for late notice but Scott and I are doing a Video Conference on Investing and Market Turbulence today at 10am PAC/1pm EST. We will be doing more of these. Check our Events page: https://403bwise.org/events for details. Session Description Investing & Market Turbulence (Session 2) Tuesday, March 24 at 10am Join us for an interactive presentation and discussion on the recent market turbulence and what it means for saving for retirement. Zoom + Nearpod Using Zoom The event will be conducted via Zoom. If you have used this platform before simply click on the “Join Zoom Meeting” link. If you haven’t used Zoom before, click on the link now to download the software. This only takes a few moments. Here’s an excellent short tutorial on joining a Zoom Meeting for the first time https://support.zoom.us/hc/en-us/articles/201362193-Joining-a-Meeting JoinZoom Meeting https://zoom.us/j/208040088?pwd=WDVJRWFTTUczVDNsTXlvK0k1ZmRIUT09 Using Nearpod You don't have to have any experience with Nearpod to participate. Nearpod is a web-based teaching application integrated into the presentation that allows participants to engage in polls, questions, view , and share their opinions. Ideally you have two screens (one for Zoom and one for Nearpod). We will explain at outset. Please know you don't need two screen if using a laptop or desktop where you can open a second window.
  7. Steve and Krow I'm no expert here but my opinion is we can't shut down the country for months over this.The economic consequences could be worse than the virus . It would and will do incredible damage to our economy of the likes we have never seen. I think we should only ask people of a certain age to quarantine as well as those who have other illnesses eventually. The rest need to do their due diligence and take everyday precautions but return to normal routines.Certainly this drill is teaching us what precautions to take. Perhaps pockets of high concentration like New York, Seattle and parts of California and Florida should have more stringent rules. Let the governors and mayors decide. In Italy a certain Northern pocket of the country is where the problem is serious. The rest of the country not so much. Opening the gates will possibly spread the virus but folks usually can beat it so we in essence would be spreading immunity. I believe its called a "Herding Effect" I know that seems inhumane but having a 20-30% unemployment rate is inhumane too. I'm seeing great opportunities for businesses to invest in public health going forward. I know we should ignore the noise when it comes to investments right now .but I just sold my taxable international fund at a good loss. Seeing I seem to owe the government money ever year. it was an opportunity I could not pass up. I'm keeping my eye on my taxable accounts for tax loss harvesting as Whyme mentioned. So far I remain in the black in most of my funds. I won't do anything otherwise in my IRA accounts. I won't being paying my tax bill until July now. There is no easy answer to the horrible mess we are in. I pray for all that are ill and I certainly don't think the stock market or the economy is more important than human life. Tony Note: Everyone's situation is different.Anything I write on this website is my personal opinion and should not be considered investment advice. Please do your own research.
  8. Thanks Tony. Every crash is a surprise and the causes are different. The usual posters here have planned for something like this for years, and now is the time to probably quit looking at your portfolio for a while. You are all smart enough to not do anything right now but to hang on tight. I am in an advantage because I won the game years ago (after a massive loss in 2000-2002), so I quit playing with my conservative portfolio. I learned to construct my portfolio after making huge mistakes 20 years ago and I was in my early 50s. The most immediate danger is not getting sick, and friends, neighbors, and family losing their jobs. My two nieces lost their jobs as waitresses.
  9. Download the Book THE PDF file should open. Apple Books » | PDF » | Epub » | Mobi » (Additional help: Opening .mobi files on a Kindle | How to open Epub files on Kobo Reader, Barnes & Noble Nook, and Google Play Books.)
  10. I thought I'd share this with all of you . With so much misinformation out there this is a good reference. I found it in line with what I have been reading on responsible /reputable websites. I realize this is not about investing but considering what we all are going through, I hope it will be allowed to be shared. It does have a chapter on investing It's 160 pages plus long.
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  12. Teach and Retire Rich Ep. #104 is up: http://teachandretirerich.libsyn.com/market-volatility-questions-104 Good to hear the discussion.
  13. DCA (as it applies to a pile of cash) mitigates risk in the sense that you aren't invested in the market, but not being invested in the market isn't a valid strategy. Bonds are a valid risk management strategy, sitting on cash is speculative and locking in the erosion of inflation. One easy way to see what a poor risk mitigation strategy DCA is, is to imagine somebody who is already fully invested and they're scared of market risk. Nobody in their right mind would ever recommend that this person take a lump sum out of the market and slowly dribble it back into the market. Sure doing so reduces risk, but I think we can all see how foolish that approach would be. The reason people can't see how foolish it is if somebody has a windfall is because we're incorrectly anchoring to the value of the portfolio on the day of the windfall and for a reason I can't explain people don't seem to anchor to the value of the portfolio on the day they're fully invested (at least in the context of DCA). Investing everything you have in the market isn't speculation or a gamble. Investing in single stocks is a gamble. Investing for the short term is a gamble. Investing in a single sector is a gamble. Putting all of your portfolio into the market is just plain investing. However, pulling money in or out of the market based on short term gyrations...that my friend, that's speculation.
  14. Yay, a taxable account buoy. If anyone wants to meet via Zoom during the day, let me know. I'm working from home/sheltering in place for the next few weeks.
  15. DCA is entirely a risk management issue. Sure, “on average,” lump sum investment yields better results, except when it doesn’t. The problem is that no one knows in advance when that will be. When one dumps in a large sum of money into an investment, not only is the entire amount put “to work,” it is also put at risk. In this current market when we are just starting to see the beginning of the worst of this situation, who knows how bad it can get. The upward potential is reduced sure , but risk is reduced to a much greater degree.If one has money to “play with” in the market, go ahead and speculate, gamble, and dump in funds as one sees fit. If one has limited means and needs every penny available to survive in retirement, then one needs to stick to traditional rules of asset allocation and systematic investing. The market is too unpredictable to know which is the better approach. Regardless I'm hearing many folks will be getting a lump sum of 1,200.00 from the government. Don't have the details but I believe everyone with income below $70,000 gets it but I'm not clear on the details. I think this should only be given to people who really need it and not everybody but I understand they are trying to keep the economy afloat. I'm afraid our comments here are only making investing sound complicated and scary to others when its supposed to be simple.
  16. Yes. Time out of the market, on net, hurts returns. On average the stock market obviously goes up, otherwise we wouldn't put money in it. So if you sit on a pile of money for a fixed amount of time and slowly drip it into stocks, then statistically speaking you will miss out on gains (not losses). That's why you hear the phrase "time in the market, not timing the market" (or something along those lines). Of course, if you look at any individual time period you either lost or you won, but you're more likely to lose with DCA. The only utility of DCA is convincing fearful people stuck in a fallacy to get their money in the market. Of course I'd argue strongly that if they're so fearful then the real problem is their asset allocation. Now if you're just putting money in the market each time it becomes available to you (i.e. payday) then I don't really consider that to be a strategy. You're just investing whenever you can, not when you choose to believe it is a "good" time to invest.
  17. I've seen a few articles recommending splitting up investments during volatile times, but I doubt any of us really have a significant sum where it matters. It's largely a short term mental exercise to avoid feeling like you bought in on the wrong day. Even using something like the $6k max contribution won't really matter how/when you put it in the market, all that matters is it being there... keep putting your drops in the bucket. I just read up on that. Investopedia has some guidance, but I appreciate your input. Seems like it's just IRAs are taxable accounts that fall under the IRS wash sale magnifying glass.
  18. Is that because of time? How would it be different. ?
  19. People conflate DCA a lump sum with regularly investing money with each paycheck. The the former has a lower expected return, the latter is absolutely recommended.
  20. That was my point just don't dump it in all at once with a sudden windfall. Take time to think how you want to proceed. Don't make an emotional decision.DCA is the way back into the market. Although some experts say it doesn't matter if you lump sum an amount or DCA the money back into stocks. DCA is attacked by some as a useless endeavor. I always DCAveraged my accounts through thick and thin and it worked for me. ScottO thanks for your contributions to this discussion and thanks for the links.
  21. I was trying to consolidate accounts and move them all to Vanguard. My goal was not necessarily to trigger a deduction. i was with my rights at 31 days and yes i could have repurchased the very same Fidelity fund but that wasn't my goal. I guess we can argue all we want about what timing is as we continue to do . I might have a different understanding of it that you do. I'm just sharing my ideas and my way of doing things. i'm not asking anyone to do what I do. I'm not trying to give anyone specific advice.
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