Ask Rande 10,000+

Top 115. Sep 19, 2001 8:13 PM

» Rande - Re: Dollar-cost-averaging never looked so good

In response to message posted by ed_from_chico:

Thanks Ed. Was out most of the day and so missed the >400 point intra-day dip in the Dow. If someone hadn't mentioned it, I'd never know how "lucky" we were to only finish down 144. smile Not a bad time for everyone to take a break from the market. Only way to do that and still be able to enjoy yourself at times such as these is to do what you and your wife have done -- develop an investment policy that's so well-suited to your individual needs, goals, and circumstances that you have to remind yourself to think about it once or twice a year just to keep it on track. That's not to say that times of market adversity are enjoyable, just not life-changing. Nice job on doing it right.

-- posted by Rande

Top 116. Sep 21, 2001 3:28 PM

» Bernie777 - When do I return to spy?

Rande, can you please advise me. I did foolish thing got out of market at end of August after having huge loss, all in this in my IRA.
I'd like to be fully invested again in spy but am scared to get back. I tried to get back today only to panic and sell again. Majority of money is in cd's. Please help!!!

-- posted by Bernie777

Top 117. Sep 21, 2001 3:57 PM

» SteveT - Re: When do I return to spy?

In response to message posted by Bernie777:

I can't and never would try to speak for Rande, but. It is my opinion maybe you are not yet ready to be in the market, at least at this time.

I also think Rande would ask you to consider your time frame to use this money, and really get to know you risk tolerance, which seems to me to be what I would call on the low side. Nothing wrong with that, we are all different, no one answer for all of us.

In short if I were you I would be in no hurry. What ever you end up doing understand what and why you are doing it. Oh yeah feel comfortable with it or don't do it.

How did I do professor? smile

-- posted by SteveT

Top 118. Sep 21, 2001 4:39 PM

» Bernie777 - Low Risk Tolerance

Thanks for replying. My time frame is 10 years at which time I will have to take minimum distributions. I was ready to obtain 5 year cd at 5.21%. I was told market is near bottom and that would be a foolish move. I am thinking market could rise 20% in one day. Art Cashin CNBC said after 4:00 pm, he can feel it in his bones, selling has stopped and rally will begin within 48 hours. How reliable is he? I do have low risk tolerance, I found that out recently.

-- posted by Bernie777

Top 119. Sep 21, 2001 4:55 PM

» Rande - Re: When do I return to spy?

In response to message posted by Bernie777:

Bernie,

Investing is an individual and personal endeavor. You can't follow some wirehouse's recommended allocation or take action on the latest guru pronouncement as though it was meant just for you. This is not a one-size-fits-all business. What you need to do is find your own comfort level and stick to it. Maybe that means you have nothing in stocks for the rest of your life. Maybe it means you find a level of exposure you can live with. But if you do decide to invest in stocks it had better be with money you won't need to touch for a long time and you'd better be prepared to stick with it. Unless you can predict the future with enough accuracy and consistency to always be in the right place ahead of time. Unfortunately, nobody can. Based on the decisions you've already made, even before the events of last week, you may have answered the question of your own suitability better than anyone else could ever do for you. My own recommendation, even for those who are really risk averse, would be to have at least 25-30% of your portfolio in a diversified stock portfolio if you have the time horizon and discipline to stick with it. But the stock market isn't for everybody and there's nothing wrong with CDs if the alternative is buying high and selling low.

-- posted by Rande

Top 120. Sep 21, 2001 4:56 PM

» SteveT - Re: Low Risk Tolerance

In response to message posted by Bernie777:

In 10 years if you are fully invested and are forced to take minimum distributions that doesn't mean you will take it all out of the market at once does it? Would you feel commfortable Dollar Cost Averaging in 1/12 of the amount you want in the market each month for the next year? That way if we go up the money you already put in makes you feel better, and if we go lower you buy more shares each month than you would have gotten at higher prices.

As to 20% up SPY in one day, anything is possible but I would not bet on it.

Art and his bones won't feel your loses if we do go lower. On the bright side if we go higher you won't have to share with him smile Like I said earlier don't be in any hurry.

-- posted by SteveT

Top 121. Sep 21, 2001 5:04 PM

» Rande - Re: Re: When do I return to spy?

In response to message posted by SteveT:

Thanks for filling in Steve. Just back a little while ago from meetings in Pebble Beach and Los Gatos. I see the market had another one of "those days." I did the only buying I've done this week (actually, the only buying I've done in a month, since I'm DCAing at this point) at the close with some mutual fund purchases I put in before I left. Even had a limit order in on VTI, but it didn't hit. Anyway, not buying right now because I think the market won't go any lower. It probably will. Will just be buying more the next time. Besides, if we really DO get Armaggedon, what difference will it make WHERE your money is? But to stop the DCA, to fail to maintain the asset allocation, at a time such as this would be more than abondaning discipline and acting based on emotional fear -- it would be insanity. The market hasn't been this low in years, but it seems the people who had no trouble buying when prices were high are refraining now that prices are lower out of fear they will never stop dropping. Nothing new, of course. For many people, it's just as hard to maintain a proper allocation when the market is rising (too much in stocks, but greedily overweighted so they don't miss out) as it is when it's falling. The truth is that a proper allocation can be difficult for some to maintain in BOTH up and down markets. The market is not for everybody.

-- posted by Rande

Top 122. Sep 22, 2001 1:51 AM

» Bernie777 - Good Diversified Fund

I am glad I found this board for excellent advise and I am thinking about it. I would like to put back into the market whatever little stock market money I have left. Can you recommend a good diversified equity fund in the Fidelity family. Thank you.

-- posted by Bernie777

Top 123. Sep 22, 2001 6:14 AM

» SteveT - Re: Good Diversified Fund

In response to message posted by Bernie777:

Bernie, if you limit yourself to Fidelity you may want to take a look at http://biz.yahoo.com/p/f/fstmx.html
It is about as diversified as you can get, the expense ratio isn't to bad. Another option could be the Viper ETF. http://quote.yahoo.com/q?s=vti&d=t

These would essentially be the same investment but the Viper may save you a little on the expense ratio, and over 10 years or more that can really add up to more money in your pocket. Best to you.

-- posted by SteveT