Comments on: What to do When the Market Plunges http://www.mint.com/blog/finance-core/what-to-do-when-the-market-plunges/ The blog of the free, simple personal finance solution. Track all your spending automatically, find the best deals, save more money. And save the world. Fri, 20 Nov 2009 20:48:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Chad @ Sentient Money http://www.mint.com/blog/finance-core/what-to-do-when-the-market-plunges/comment-page-1/#comment-26578 Chad @ Sentient Money Sun, 12 Oct 2008 13:12:02 +0000 http://blog.mint.com/blog/?p=440#comment-26578 @ Hartman I couldn't agree more. Who cares if your retirement account fluctuates another few percent when you are 10-30 years from retirement. @ Hartman
I couldn’t agree more. Who cares if your retirement account fluctuates another few percent when you are 10-30 years from retirement. ]]> By: hartman http://www.mint.com/blog/finance-core/what-to-do-when-the-market-plunges/comment-page-1/#comment-26538 hartman Sat, 11 Oct 2008 15:29:47 +0000 http://blog.mint.com/blog/?p=440#comment-26538 recommending a 25 year old person have 25% in bonds is criminal. recommending a 25 year old person have 25% in bonds is criminal. ]]> By: Chad @ Sentient Money http://www.mint.com/blog/finance-core/what-to-do-when-the-market-plunges/comment-page-1/#comment-26506 Chad @ Sentient Money Fri, 10 Oct 2008 14:56:21 +0000 http://blog.mint.com/blog/?p=440#comment-26506 @ Tom Since you are getting picky, your 5.6% inflation number is incorrect. The current reported CPI understates inflation. If they still used the formula used in the 80's we would be close to 9%. Also, if someone had kept money int he market you would have taken a hit from the market and from inflation. So, just taking the inflation loss isn't too bad. @ Tom

Since you are getting picky, your 5.6% inflation number is incorrect. The current reported CPI understates inflation. If they still used the formula used in the 80’s we would be close to 9%.

Also, if someone had kept money int he market you would have taken a hit from the market and from inflation. So, just taking the inflation loss isn’t too bad.

]]> By: Thomas http://www.mint.com/blog/finance-core/what-to-do-when-the-market-plunges/comment-page-1/#comment-26498 Thomas Fri, 10 Oct 2008 12:07:21 +0000 http://blog.mint.com/blog/?p=440#comment-26498 @Dave:Technically, because your method does not keep up with inflation, you have lost money. If you hid $10k at the end of 2007, due to inflation, it only has $9464 of buying power today. In a way, you've just lost $540. The only way you could have kept up with the inflation of '08 is to have invested in something that gave you a >5.6% return. @Dave:Technically, because your method does not keep up with inflation, you have lost money. If you hid $10k at the end of 2007, due to inflation, it only has $9464 of buying power today. In a way, you’ve just lost $540. The only way you could have kept up with the inflation of ‘08 is to have invested in something that gave you a >5.6% return. ]]> By: Brandan http://www.mint.com/blog/finance-core/what-to-do-when-the-market-plunges/comment-page-1/#comment-26464 Brandan Thu, 09 Oct 2008 21:17:13 +0000 http://blog.mint.com/blog/?p=440#comment-26464 I pulled my money out of stocks about 8 months ago because I saw this coming. The mortgage situation was just not getting any better and it was only a matter of time until the mess spilled over to non-financial companies. I generally agree that timing the market is not a great plan, but not moving to cash ahead of an apocolypse in the markets is just silly. Over the last 6 monhts, I have been hearing colleagues wonder about how much longer the market will be in decline, but they never did anything about it. After today's fun on the Dow, I can move my money back into stocks tomorrow and build in a huge gain - I think I will wait a little longer though, we have not yet seen the bottom! I pulled my money out of stocks about 8 months ago because I saw this coming. The mortgage situation was just not getting any better and it was only a matter of time until the mess spilled over to non-financial companies.

I generally agree that timing the market is not a great plan, but not moving to cash ahead of an apocolypse in the markets is just silly. Over the last 6 monhts, I have been hearing colleagues wonder about how much longer the market will be in decline, but they never did anything about it. After today’s fun on the Dow, I can move my money back into stocks tomorrow and build in a huge gain – I think I will wait a little longer though, we have not yet seen the bottom!

]]> By: Chad @ Sentient Money http://www.mint.com/blog/finance-core/what-to-do-when-the-market-plunges/comment-page-1/#comment-26412 Chad @ Sentient Money Tue, 07 Oct 2008 23:27:15 +0000 http://blog.mint.com/blog/?p=440#comment-26412 This is fine if you want to be a wage slave the rest of your life and retire at 65 or 70...just in time to die. This is fine if you want to be a wage slave the rest of your life and retire at 65 or 70…just in time to die. ]]> By: Dave http://www.mint.com/blog/finance-core/what-to-do-when-the-market-plunges/comment-page-1/#comment-26408 Dave Tue, 07 Oct 2008 21:14:48 +0000 http://blog.mint.com/blog/?p=440#comment-26408 I consider myself adequately diversified: I have cash spread between several banks, safety deposit boxes and the mattress. Not joking. Got out in October 2007. Haven't lost a penny since then. I'll consider buying back in, in a couple of years. This isn't "timing the market." Your daddy's stock market no longer exists. Your due diligence should include a thoughtful examination of 1920-1940. I consider myself adequately diversified: I have cash spread between several banks, safety deposit boxes and the mattress.

Not joking.

Got out in October 2007. Haven’t lost a penny since then. I’ll consider buying back in, in a couple of years.

This isn’t “timing the market.” Your daddy’s stock market no longer exists. Your due diligence should include a thoughtful examination of 1920-1940.

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