Re: [TSPStrategy] FWIW: What I am doing.

Thanks Tex. I wish I could put every cent I have but I have a family to support, nevertheless, I am putting $1k per pay period which is a decent amount. We also have a paid of vacation home in the NM mountains worth around $300k which includes a newly built smaller cabin shell waiting to be finished. The little cabin will be our guest house from time to time but mostly it will be a secondary source of income through AirBnb or VRBO. 

We also just purchased the lot (6 acres) next to ours at a good price with a little equity in it. 

Our main home also has good equity (until the housing market crashes). Hopefully it will hold some until we sell in two years when I will probably retire.  

Sadly the downturn took us slightly below the $1m net worth but we aren't too worried because as soon as it bounces back we will be well above that threshold since we are buying stocks at a discount. 

I keep telling my coworkers to stop panicking. They keep wanting to move to G. 

JP

On Friday, June 17, 2022, 1:49 PM, Locutusoftexas <mrweyl@hotmail.com> wrote:

Bill and JPass et al.

My policy is to avoid giving advice. However, I would like to offer the group some comments on purely hypothetical cases.

Hypothetical case I: If I were retiring in 20 years or longer, the best strategy for me would not be trading of any sort. I would instead strongly consider being fully invested in stocks until I retired. That would require not letting bear markets bother the investor and not listening to anyone else's advice, including so-called professionals.

Hypothetical case 2: If I were retiring in under 10 years and the market went down as it has now or as it did in March 2020, I would personally invest every cent that I had in stocks right away and not try to find a bottom in the market. Unlike 30 years ago, this market now turns on a dime and even a moderate opportunity to make an extra 20% could easily be lost. Glass half-full sort of thing.

Note: this is not advice. These are hypothetical cases. In my own case, I raised cash to simply my overall portfolio for my heirs when I die. My intention was to put it in the equivalent of the C fund, but low and behold, I saw that the market was going to take a dive. Also my indicators are working. So waiting to buy was just dumb luck. As the actor Mako (playing James Chan) said in the Chuck Norris film, "An Eye for an Eye," when he knocked a bad guy out with a rotary telephone (!), "The warrior uses whatever is closest to hand."

One final comment, I personally know someone who made a few million dollars by mostly buying stocks and other assets and not selling, i.e., by doing nothing. Of course the person did not take vacations and also drove cars until they fell apart. If the person had invested in plain vanilla stock index funds and not sold stocks at all, the figure would have been around double or triple that.

If anyone wants to explain the underlying value of bitcoin to me, I would appreciate it.

As always, I wish you good luck.
Tex