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Completely agree with this mindset. All the non-cash assets and investments I hold onto I intend to keep for over 20 years. Short term corrections in the market

Completely agree with this mindset. All the non-cash assets and investments I hold onto I intend to keep for over 20 years. Short term corrections in the market even as bad as 2008/9 don't concern me. As long as you're not speculating debt against market performance and have emergency cash on hand you can hold and buy the assets at a lower valuation.

junkscience2017 9y ago
but frankly even trying to time a bottom as a buying opportunity can be dangerous, because it can prevent you from making common sense investments at decent prices.
- jreynojustin 9y ago
  I buy assets on a consistent scheduled basis and am not waiting for some big crash to happen. But if I do notice the market is pretty bearish then I may decide to purchase more beyond that regular investment schedule.
e40 9y ago
Yep. This is a problem for people like my parents, who are 80+ and living off investments. A big downward correction is very scary for people in that situation, but not at all worrying for me.
- jreynojustin 9y ago
  Yeah agreed I know some folks in that situation back in 08/09. I'm still in my 20's so not sure how I'm going to deal with investing as I get into my retirement years. It can be scary to have over half your retirement wipe out with no time for correction. Probably a more cash heavy asset allocation would be the solution. Not sure though.
  - prewett 9y ago
    I think dividend income is a typical solution. It doesn't matter what the stock price does if the company continues paying dividends. If the company is strong and pays a dividend, the stock can be looked at like a low-yield bond. Except that dividend-companies tend to increase the dividend every year when possible, so it's also a bond where the yield increases. Coca-Cola has paid about 3% for years and years.
  - mathgeek 9y ago
    That's not something worth worrying about in your 20's. Just set up a recurring investment in index funds or similar and forget it exists until you're at least in your 50's or later. Random catastrophes do happen to younger folks, of course, but those are something to deal with if and when they happen.
- 31reasons 9y ago
  Shouldn't their investments already been moved to Bonds/Money markets? At 85, if you have to worry about stock market, you are doing it wrong.
  - hkmurakami 9y ago
    Depends on whether they want to pass on appreciated equity at a step up basis to their offspring.
  - e40 9y ago
    That's a good point. My mother is 80 (in a few months) and it's all about life expectancy. Her mother lived to 95. She is in good health. Should she assume the best or worst case? The choice she makes will greatly effect her lifestyle. Hard problem.

junkscience2017 9y ago

but frankly even trying to time a bottom as a buying opportunity can be dangerous, because it can prevent you from making common sense investments at decent prices.

jreynojustin 9y ago
I buy assets on a consistent scheduled basis and am not waiting for some big crash to happen. But if I do notice the market is pretty bearish then I may decide to purchase more beyond that regular investment schedule.

e40 9y ago

Yep. This is a problem for people like my parents, who are 80+ and living off investments. A big downward correction is very scary for people in that situation, but not at all worrying for me.

jreynojustin 9y ago
Yeah agreed I know some folks in that situation back in 08/09. I'm still in my 20's so not sure how I'm going to deal with investing as I get into my retirement years. It can be scary to have over half your retirement wipe out with no time for correction. Probably a more cash heavy asset allocation would be the solution. Not sure though.
- prewett 9y ago
  I think dividend income is a typical solution. It doesn't matter what the stock price does if the company continues paying dividends. If the company is strong and pays a dividend, the stock can be looked at like a low-yield bond. Except that dividend-companies tend to increase the dividend every year when possible, so it's also a bond where the yield increases. Coca-Cola has paid about 3% for years and years.
- mathgeek 9y ago
  That's not something worth worrying about in your 20's. Just set up a recurring investment in index funds or similar and forget it exists until you're at least in your 50's or later. Random catastrophes do happen to younger folks, of course, but those are something to deal with if and when they happen.
31reasons 9y ago
Shouldn't their investments already been moved to Bonds/Money markets? At 85, if you have to worry about stock market, you are doing it wrong.
- hkmurakami 9y ago
  Depends on whether they want to pass on appreciated equity at a step up basis to their offspring.
- e40 9y ago
  That's a good point. My mother is 80 (in a few months) and it's all about life expectancy. Her mother lived to 95. She is in good health. Should she assume the best or worst case? The choice she makes will greatly effect her lifestyle. Hard problem.