How close are you to being retired?

[Engineer]

what bad investment?

I tell this story to help others to not do what I did. About 7 years ago or so, I picked a stock and it shot up quickly from 17 to 31. I thought I was going to be rich even though I had a small amount invested. Decided I needed to buy on the dips and watch it run. Did my research, company looked sound...all was good.

Stock dropped a few bucks and I bought a big chunk. Dropped some more and I bought more. Dropped even more and I bought even more. Dropped again and I went all in and even used margin to buy more. It finally broke with a 40% drop in after hours one evening. But...but...but, I just knew it would make a comeback. I raked up money to pay the margin down but it was going down faster than I could rake up the money. Had several margin calls but again, I just knew it was going to come back.

Obviously, it never did. It fell so far so fast that my account went negative when I finally sold out. I had to call up the broker and ask them if I was really going to have to send in money to get my account back to zero. They were nice enough not to stomp on my already down day.

I have a 20 year reminder (not sure how many left now) of the write-off limit on stock losses on my taxes to remind me not to fall in love with a stock. Regardless, since I did all of this without my wife's knowing, I had to promise to not buy individual stocks again. It was the least that I could do for someone who was as understanding as she was.

It wouldn't have got me to retire at 45 but it would have helped knock a year or two off of the final retirement date....maybe more.

Cliffs:

• Fell in love with stock.
• Kept buying even on margin as it went down.
• Lost $60k.
• Cried (hard)).
• Write $3,000 off per year - 20 year reminder

 

[TXHokie]

Looking at 14 yrs at least when my youngest graduate from college. But it could be sooner if I hit the lottery jackpot - tho my chance at that won't improve unless I buy tickets.

 

[JEDI]

I tell this story to help others to not do what I did. About 7 years ago or so, I picked a stock and it shot up quickly from 17 to 31. I thought I was going to be rich even though I had a small amount invested. Decided I needed to buy on the dips and watch it run. Did my research, company looked sound...all was good.

Stock dropped a few bucks and I bought a big chunk. Dropped some more and I bought more. Dropped even more and I bought even more. Dropped again and I went all in and even used margin to buy more. It finally broke with a 40% drop in after hours one evening. But...but...but, I just knew it would make a comeback. I raked up money to pay the margin down but it was going down faster than I could rake up the money. Had several margin calls but again, I just knew it was going to come back.

Obviously, it never did. It fell so far so fast that my account went negative when I finally sold out. I had to call up the broker and ask them if I was really going to have to send in money to get my account back to zero. They were nice enough not to stomp on my already down day.

I have a 20 year reminder (not sure how many left now) of the write-off limit on stock losses on my taxes to remind me not to fall in love with a stock. Regardless, since I did all of this without my wife's knowing, I had to promise to not buy individual stocks again. It was the least that I could do for someone who was as understanding as she was.

Cliffs:

• Fell in love with stock.
• Kept buying even on margin as it went down.
• Lost $60k.
• Cried (hard)).
• Write $3,000 off per year - 20 year reminder

wow.. 20yr write off?! YIKE!
thought I had it bad with a 7yr write off after the tech bubble burst in 2000.

swore I've never dabble in the stock market again (except my 401k).
glad I missed all chaos of the 2008 crash.

yet a decade and half later, I seem to have forgotten history and am now I'm looking at oil. gut feeling said do this 2 weeks ago:
http://forums.anandtech.com/showpost.php?p=37085887&postcount=152

oil is now at $44.
would have made 12% in 2 weeks. but wait.. it's a 3x short so +36% in 2weeks.

your story is making me remember history

 

[Engineer]

http://finance.yahoo.com/news/weekend-over-crude-oil-getting-001415258.html

Oil still crashing hard. Never try to catch the falling knife....I nearly cut my head off doing that.

 

[Imp]

I tell this story to help others to not do what I did. About 7 years ago or so, I picked a stock and it shot up quickly from 17 to 31. I thought I was going to be rich even though I had a small amount invested. Decided I needed to buy on the dips and watch it run. Did my research, company looked sound...all was good.

Stock dropped a few bucks and I bought a big chunk. Dropped some more and I bought more. Dropped even more and I bought even more. Dropped again and I went all in and even used margin to buy more. It finally broke with a 40% drop in after hours one evening. But...but...but, I just knew it would make a comeback. I raked up money to pay the margin down but it was going down faster than I could rake up the money. Had several margin calls but again, I just knew it was going to come back.

That sounds exactly like what I've been doing with one oil company stock. I'm right before the all-in part with the majority of my money in stable-ish stuff. My master super plan is to go all in once I'm done with the other play and oil bottoms out... And then I kick myself in the ass to remind myself that I don't feel like losing anymore money than I already have.

 

[TurtleCrusher]

how much does that pay? what rank?

and sorry to hear
I bet you rather have full mobility than retirement?

It depends. Here's the VA chart. I'm an E-5 at the moment.

Could be 30-80% depending on the results. No kids, but do have a wife. I can use the GI bill for the BAH ($1400 a month I think) and go to school.

 

[Nograts]

It depends. Here's the VA chart. I'm an E-5 at the moment.

Could be 30-80% depending on the results. No kids, but do have a wife. I can use the GI bill for the BAH ($1400 a month I think) and go to school.

I'm slowly adding to my files for this. You taxpayers are going to cough it up! Lol. Do they still pay for ptsd?

 

[TurtleCrusher]

I'm slowly adding to my files for this. You taxpayers are going to cough it up! Lol. Do they still pay for ptsd?

Yeah that's a 50% alone I believe. I am in the Navy, so the only thing that has scarred on me is my failed surgery. I have knee and blood issues in that area now.

 

[Nograts]

Yeah that's a 50% alone I believe. I am in the Navy, so the only thing that has scarred on me is my failed surgery. I have knee and blood issues in that area now.

I've got 2 purple hearts so I'm gonna bank hopefully. I'd trade them for my friends back though

 

[cbrunny]

If I remain employed, I should retire in... 2051. 36 years to go.

I started saving for retirement in 2009, when I was 42 years from retirement. Not sure of the exact amount that is in my plan atm (defined contribution), but I should be getting a statement update just about any day now. My last one said that if I maintain my current salary I'll retire with the ability to draw down almost double my current salary on retirement in today's dollars. I think I'm ok.

Plus CPP, which is only about $12k a year max in today's dollars.

 

[Exterous]

swore I've never dabble in the stock market again (except my 401k).
glad I missed all chaos of the 2008 crash.

2008 was rough but you'd have more than made your money back if you kept investing during that time. Even if you didn't make any new contributions break even would have been late 2012 IIRC for a diversified investment

 

[Engineer]

2008 was rough but you'd have more than made your money back if you kept investing during that time. Even if you didn't make any new contributions break even would have been late 2012 IIRC for a diversified investment

I actually increased my contributions to maximum when all of that started. That's the only saving grace after such a rough period (losing the $60k and watching my 401k drop 65% - I almost threw in the towel, sold it all and quit). So glad I didn't.

 

[JEDI]

2008 was rough but you'd have more than made your money back if you kept investing during that time. Even if you didn't make any new contributions break even would have been late 2012 IIRC for a diversified investment

oh don't get me wr0ng.. I kept maxxing out my 401k.
I just bought I-bonds + cd's with after tax $.

 

[vi edit]

Who knows. 5 years ago I never would have predicted where I am now. And 5 years before that were I would be. So 15+ years out? No idea.

Ideally? We'd settle in for the long haul where we are. I'll be 37 next month. My kids are 3 & 7. If my wife and I stay where we are our kids basically get free college. So I've got about 20 more years to get my youngest through. At that point I'll probably call it a career unless the money is just too good and I enjoy what I'm doing.

My wife is a few years younger than me, but in a position that offers very good income even on a part time basis. I'd guess that she'd go part time after the kids are done with school and keep working until we were able to draw full benefits.

 

[TallBill]

2008 was rough but you'd have more than made your money back if you kept investing during that time. Even if you didn't make any new contributions break even would have been late 2012 IIRC for a diversified investment

That was the best time to make contributions.