Comments on: The 10 Year Anniversary of our Windfall http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/ Our Journey to a Debt-Free Life Sat, 20 Mar 2010 20:04:51 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Matt http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-480405 Matt Thu, 05 Jun 2008 11:01:41 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-480405 Looking back at some of the mistakes I've made in the past is a little depressing since over the past 10 years I made a fair amount of money but I now have virtually nothing to show for it except a lot of consumer debt. I'm sure I would have made the money vanish just as quickly as you... though I was fascinated with the stock market at the time so there would have been a possibility that I might have invested part of that money. Looking over what we've done in the past is good way to measure ourselves and learn from our mistakes but personally I avoid the what if scenarios. Looking back at some of the mistakes I’ve made in the past is a little depressing since over the past 10 years I made a fair amount of money but I now have virtually nothing to show for it except a lot of consumer debt. I’m sure I would have made the money vanish just as quickly as you… though I was fascinated with the stock market at the time so there would have been a possibility that I might have invested part of that money.

Looking over what we’ve done in the past is good way to measure ourselves and learn from our mistakes but personally I avoid the what if scenarios.

]]> By: pj http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-480338 pj Thu, 05 Jun 2008 02:18:58 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-480338 Tricia, if you ever invest in the market, do not buy stocks or actively managed mutual funds. The former carries way too much risk, the expense ratios (over 1% per year) of the latter are too high. Stick with low cost index funds. You can own 3000+ stocks in the USA with an expense ratio of only o,07% for example (Vanguard Total Market, VTI is the name). Tricia, if you ever invest in the market, do not buy stocks or actively managed mutual funds. The former carries way too much risk, the expense ratios (over 1% per year) of the latter are too high. Stick with low cost index funds. You can own 3000+ stocks in the USA with an expense ratio of only o,07% for example (Vanguard Total Market, VTI is the name).

]]> By: Bev Schweigert http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-480301 Bev Schweigert Wed, 04 Jun 2008 21:55:08 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-480301 We are so much better off than we were 10 years ago!!! We filed for bankruptcy 9 years ago, so 10 years ago, we were fighting off bill collectors and living off credit cards. We had just moved to a new town and both only had part time jobs... it was a sad, sad time.... We are so much better off than we were 10 years ago!!! We filed for bankruptcy 9 years ago, so 10 years ago, we were fighting off bill collectors and living off credit cards. We had just moved to a new town and both only had part time jobs… it was a sad, sad time….

]]> By: boomie http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-480245 boomie Wed, 04 Jun 2008 17:00:10 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-480245 I bought 50 shares of Apple back in the late 1990's when the share was only $13. I had to fight with my husband because I wanted to buy 100 shares, he wanted to buy nothing, so we compromised on 50 shares. Well, since then, the shares have doubled, so I have my 100 shares anyway. My $650 investment is worth $19,000 today approximately. Lesson: each of us know deep inside what to do with our money. Listen to your soul and stop letting others talk you out of it. I also had to fight with my husband back in 1998 between buying a PC or a Mac. We bought a mac. I also would call the head of the computer progams of the colleges my daughters wanted to attend to ask what kind of computers they had. If they didn't have macs, my kids went to a college that did. Both girls have careers using mac computers and at the ages of 24, both earn salaries nearing 6 figures. Money that neither I nor my husband combined could have ever earned. Right now, there is a new Apple Computer-type company brewing. Find it and listen to your heart. Love you Steve Jobs!!!! I bought 50 shares of Apple back in the late 1990’s when the share was only $13. I had to fight with my husband because I wanted to buy 100 shares, he wanted to buy nothing, so we compromised on 50 shares. Well, since then, the shares have doubled, so I have my 100 shares anyway.

My $650 investment is worth $19,000 today approximately.

Lesson: each of us know deep inside what to do with our money. Listen to your soul and stop letting others talk you out of it. I also had to fight with my husband back in 1998 between buying a PC or a Mac. We bought a mac. I also would call the head of the computer progams of the colleges my daughters wanted to attend to ask what kind of computers they had. If they didn’t have macs, my kids went to a college that did.

Both girls have careers using mac computers and at the ages of 24, both earn salaries nearing 6 figures. Money that neither I nor my husband combined could have ever earned.

Right now, there is a new Apple Computer-type company brewing. Find it and listen to your heart.

Love you Steve Jobs!!!!

]]> By: Tricia http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-480093 Tricia Wed, 04 Jun 2008 01:58:58 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-480093 Mike - every time you post something about investing, it stirs up my interest in it. I really don't know much about it at all. My husband knows a lot more than I (he paid more attention in his classes). If you had any suggestions as to good books to read to start exposing myself to investing - I'd love to hear them :) Mike – every time you post something about investing, it stirs up my interest in it. I really don’t know much about it at all. My husband knows a lot more than I (he paid more attention in his classes). If you had any suggestions as to good books to read to start exposing myself to investing – I’d love to hear them :)

]]> By: Tricia http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-480092 Tricia Wed, 04 Jun 2008 01:52:27 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-480092 danielle - LOL - that is a different way of looking at it :) danielle – LOL – that is a different way of looking at it :)

]]> By: danielle http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-480089 danielle Wed, 04 Jun 2008 01:42:22 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-480089 Well, look at the bright side. Without it, you might be $48K in debt. Well, look at the bright side. Without it, you might be $48K in debt.

]]> By: Da Big D http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-480083 Da Big D Wed, 04 Jun 2008 01:27:36 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-480083 So you are on the hindsight is 20/20 bandwagon. When exactly would you have sold apple? When it first peaked @ $90? Or held on to it until it dropped down to $50? And then complain you lost $40??? You haven't bought any stock since then, which means you can't complain about it now. (ok you can, but don't worry about what you could have done) So you are on the hindsight is 20/20 bandwagon. When exactly would you have sold apple? When it first peaked @ $90? Or held on to it until it dropped down to $50? And then complain you lost $40???

You haven’t bought any stock since then, which means you can’t complain about it now. (ok you can, but don’t worry about what you could have done)

]]> By: Mike http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-480052 Mike Tue, 03 Jun 2008 21:27:30 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-480052 Tricia, It is VERY easy to look back on the market and say "I should have bought XXXX" and hit yourself over the head for it. The problem is that if you aren't EXTREMELY careful, you'll end up making irrational decisions on the market in a desperate attempt not to let that happen again. The fact is that AAPL has increased in value by an astounding 39.1% per year over that period. That is painful to have missed. But expecting consistent returns even 1/3 of that isn't very realistic. Investing more than just a small portion in AAPL would have been a VERY risky play. The emotions kick you for it, but you have to keep them under control for future purposes. Emotions tend to lead you in the wrong direction when it comes to investing. That's why some of the best performing funds are actually contrarian investments. They look at where emotions are moving other people, and then when prudent, do the opposite. In 1999/2000, there were a slew of mutual funds opening up in tech investments. Cotrarians looked at that and many of them moved assets out. Many missed the highs of the tech bubble, but they missed the bubble popping. It's an emotionless (or less emotional) investment plan, but one that tends to work relatively well. Of course, you should NEVER rely on that as your sole investment strategy. FWIW, explosions of funds targeting a sector have historically been a good signal of a bubble forming. Right now the hottest sector for new funds is energy. Doesn't mean that oil is going to plummet... but it may mean that a correction will come at some point... Tricia,

It is VERY easy to look back on the market and say “I should have bought XXXX” and hit yourself over the head for it. The problem is that if you aren’t EXTREMELY careful, you’ll end up making irrational decisions on the market in a desperate attempt not to let that happen again.

The fact is that AAPL has increased in value by an astounding 39.1% per year over that period. That is painful to have missed. But expecting consistent returns even 1/3 of that isn’t very realistic. Investing more than just a small portion in AAPL would have been a VERY risky play.

The emotions kick you for it, but you have to keep them under control for future purposes. Emotions tend to lead you in the wrong direction when it comes to investing. That’s why some of the best performing funds are actually contrarian investments. They look at where emotions are moving other people, and then when prudent, do the opposite.

In 1999/2000, there were a slew of mutual funds opening up in tech investments.

Cotrarians looked at that and many of them moved assets out. Many missed the highs of the tech bubble, but they missed the bubble popping. It’s an emotionless (or less emotional) investment plan, but one that tends to work relatively well. Of course, you should NEVER rely on that as your sole investment strategy.

FWIW, explosions of funds targeting a sector have historically been a good signal of a bubble forming. Right now the hottest sector for new funds is energy.

Doesn’t mean that oil is going to plummet… but it may mean that a correction will come at some point…

]]> By: Tricia http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-480026 Tricia Tue, 03 Jun 2008 19:17:09 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-480026 I don't believe we can shrug this off. Before I wrote this post, I never looked at how much Apple stock has risen. I had to face it. It does sting a little that we could have had a lot of money today. But then again - would we?? We might have cashed in the stock and blew that money too. We'll never know. Just think of what I'll be thinking of my actions in 2018. I better watch what I'm doing now so I make my future self happy :) I don’t believe we can shrug this off. Before I wrote this post, I never looked at how much Apple stock has risen. I had to face it. It does sting a little that we could have had a lot of money today. But then again – would we??

We might have cashed in the stock and blew that money too. We’ll never know.

Just think of what I’ll be thinking of my actions in 2018. I better watch what I’m doing now so I make my future self happy :)

]]> By: Beth http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-480024 Beth Tue, 03 Jun 2008 19:09:40 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-480024 I think there's a balance between moving forward and staying (emotionally) in a tough situation long enough to REALLY learn from the mistake. I am definitely not accusing Tricia of this, but I know people who kind of shrug over a major mistake, "move on" (with a kind of shrug-the-shoulders "Oh well, I can't undo it" thinking) and go on to make very similar mistakes. It's possible for "moving on" to be a form of denial. I know; I've done it myself. But I think I've learned to really experience the pain that comes from the consequences of poor choices so that it truly changes my thinking and actions from that point forward. Not fun, but necessary. That's where I see you, Tricia. I think there’s a balance between moving forward and staying (emotionally) in a tough situation long enough to REALLY learn from the mistake. I am definitely not accusing Tricia of this, but I know people who kind of shrug over a major mistake, “move on” (with a kind of shrug-the-shoulders “Oh well, I can’t undo it” thinking) and go on to make very similar mistakes. It’s possible for “moving on” to be a form of denial. I know; I’ve done it myself. But I think I’ve learned to really experience the pain that comes from the consequences of poor choices so that it truly changes my thinking and actions from that point forward. Not fun, but necessary. That’s where I see you, Tricia.

]]> By: Moths in My Wallet http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-480003 Moths in My Wallet Tue, 03 Jun 2008 17:02:37 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-480003 I usually cry or get very angry when I think about how much better off I was 10 years ago. I was only 23 years old and had zero debt and major spending power. For example, I bought '99 Pontiac Grand Am and paid cash for it. Then I buried myself in debt to go to graduate school, only to end up worse off financially than before. I've beat myself up over my student loand debt for years, but now I'm channeling my anger toward paying it off. Sort of hard to do though when you don't make very much money and you owe $100,000 for a worthless degree. I usually cry or get very angry when I think about how much better off I was 10 years ago. I was only 23 years old and had zero debt and major spending power. For example, I bought ‘99 Pontiac Grand Am and paid cash for it. Then I buried myself in debt to go to graduate school, only to end up worse off financially than before. I’ve beat myself up over my student loand debt for years, but now I’m channeling my anger toward paying it off. Sort of hard to do though when you don’t make very much money and you owe $100,000 for a worthless degree.

]]> By: Jim ~ mydebtblog.com http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-479977 Jim ~ mydebtblog.com Tue, 03 Jun 2008 15:01:03 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-479977 No sense beating yourself up over past mistakes. I'm sure you did something with the money even though you don't know what that was. Keep looking in front of you because that's the only area you can change. Live and learn, and don't beat yourself up. No sense beating yourself up over past mistakes. I’m sure you did something with the money even though you don’t know what that was. Keep looking in front of you because that’s the only area you can change. Live and learn, and don’t beat yourself up.

]]> By: Karen http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-479971 Karen Tue, 03 Jun 2008 14:28:58 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-479971 Hindsight is always 20/20, isn't it???? Shoulda/woulda/coulda.....at least you have learned from your mistakes! Hindsight is always 20/20, isn’t it???? Shoulda/woulda/coulda…..at least you have learned from your mistakes!

]]> By: Rachel @ Master Your Card http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/comment-page-1/#comment-479927 Rachel @ Master Your Card Tue, 03 Jun 2008 09:46:46 +0000 http://www.bloggingawaydebt.com/2008/06/the-10-year-anniversary-of-our-windfall/#comment-479927 It is amazing when we look back at what we could have done with money we had. I know that when my earnings were higher, I should have saved more money instead of eating out several times a week, going out drinking, cinema etc. I could probably have had quite a nice sum of money. However, it is much more healthy to look forward, learn from the mistake and move on. It is amazing when we look back at what we could have done with money we had. I know that when my earnings were higher, I should have saved more money instead of eating out several times a week, going out drinking, cinema etc. I could probably have had quite a nice sum of money. However, it is much more healthy to look forward, learn from the mistake and move on.

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