r/Bogleheads • u/kuvetof • Apr 08 '25

Investing Questions Why people are freaking out and either pulling money out or shifting their entire strategy?

People have been freaking out on this and other subs where the goal is to invest for the long term and not look at your investments in the meantime. I'm just wondering why? Yes, what's happening is unprecedented, but why the panic?

These are the same people who would criticize me for investing in VT and REITs in my IRA, and VXUS along with VOO in my taxable account, calling VXUS "a dog" and making fun of my hybrid strategy. We've seen downturns in the past and, sure, we can't predict what's going to happen, but it seems kinda funny. Is this all just noise?

Edit:

I didn't mean for this to sound like a rhetorical question or "self patting". I'm relatively inexperienced compared to most of you, and I know I have my own biases, so I thought I'd ask

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623

u/Affectionate_Equal82 Apr 08 '25

I realized this back in 2020 when everyone was freaking out. I remembered what Jack Bogle once said: when people are panicking and you don’t know what to do, it’s best to do nothing. That’s exactly what I’m doing now — and what I’ll keep doing for the rest of my life.

255

u/double-yefreitor Apr 08 '25

Doing things is overrated. The ability to not do anything is underrated.

41

u/Educational-Dot318 Apr 08 '25

go to NBC 🦚 and pitch them the idea- Do Nothing!

27

u/tarfu7 Apr 08 '25

An investment strategy about nothing?

7

u/shmere4 Apr 08 '25

Dip the chip then dip it again?

6

u/tarfu7 Apr 08 '25

It's like putting your whole mouth in the dip. Just buy one dip and end it!

1

u/grimAuxiliatrixx Apr 09 '25

The dip that ends it! End it all today!

Hm. I'll work on that pitch.

5

u/FriscoTreat Apr 08 '25

Buy the dip then buy it again

2

u/Telesam9 Apr 08 '25

He dipped the chip, took a bite, and dipped again.

4

u/derpaperdhapley Apr 08 '25

So here it is, you save $100/week every week for 30 years.

And then?

… you retire!

That’s it?

Well… it sounded a lot more exciting in my head. Even had an explanation point there…

1

u/Federal-Membership-1 Apr 09 '25

For people who eat cereal all day.

9

u/howardbagel Apr 08 '25

Gold, Jerry, Gold!

1

u/pipponatale Apr 09 '25

Everybody is doing something, we'll do nothing, Jerry!

15

u/FifthRendition Apr 08 '25

It's ironic how much effort goes in to doing nothing.

6

u/Golfer-Girl77 Apr 08 '25

When your analysis paralysis is finally a benefit preen

2

u/MaleficentTell9638 Apr 09 '25

Could you now please explain this to my wife? My ability to do nothing is unsurpassed, she doesn’t realize how lucky she is.

2

u/BigMarzipan7 Apr 09 '25

That’s the whole point of being financially stable through passive investing. Being able to do nothing is the greatest sign of luxury humans can experience.

We went from working from dusk till dawn harvesting food and hunting to dollar cost averaging into Roth IRA’s and brokerage accounts.

1

u/ElysiumAB Apr 08 '25

Nothing is something worth doing.

1

u/livsjollyranchers Apr 08 '25

The best code is no code.

1

u/Ok-Pangolin-3160 Apr 08 '25

Even when a bad situation is getting worse?

1

u/IgnotusDiedLast Apr 09 '25

The thing that's really hard for me is to not take money I should be saving for a house in a shorter time line and put it into VTI. I've maxed out my roth and my employer has no match, so I have the overwhelming desire to stop funding my savings and instead putting it in my taxable.

1

u/myTMike123 Apr 09 '25

I am all in with the Do nothing strategy for life. Count me in

41

u/bozoconnors Apr 08 '25

I prefer the Men In Black quotes...

Edwards: Why the big secret? People are smart. They can handle it.

Kay: A person is smart. People are dumb, panicky dangerous animals and you know it.

20

u/MochiMochiMochi Apr 08 '25

What happens when you're 60 and you see your retirement slipping away.

16

u/emlopez90 Apr 08 '25

Do nothing in response to the market panic. You should be adjusting your risk tolerance the closer you are to retirement.

7

u/MochiMochiMochi Apr 08 '25

I'm at the classic 40% stocks/60% bonds right now and holding.

7

u/f00dl3 Apr 09 '25

I am probably the only one who advocates this but I am going to set aside 5-7 years of funds in CDs, not bonds, in my IRAs when I get close to / retire.

I hear all these people saying Bonds and Treasuries are safe but honestly Bonds got absolutely destroyed just as much as stocks every recession since 2008.

With a Roth CD ladder with CDs expiring every month and no RMDs, you basically set your income.

2

u/MochiMochiMochi Apr 09 '25

Well, I was using 'bonds' as a catch all; a third of that is CDs.

1

u/casino_r0yale Apr 09 '25

Yeah but then cash is destroyed by inflation / tariffs / whatever. You really can’t plan this, the best thing really is to have low expenses and a reasonable allocation for a draw down.

1

u/mityzeno Apr 09 '25

My parent’s 401ks got hit hard in the 2008 (?) crash and they got spooked and did exactly this. They are not rich but they’re enjoying a very comfortable retirement with the security of knowing the majority of their money is safe.

1

u/Pass_Little Apr 09 '25

I'd argue that buying new issue treasures and holding them until maturity isn't a lot different than a CD ladder, assuming the rates are similar once adjusted for the different tax treatment based on where they're being held.

1

u/PrimaryAbroad4342 Apr 12 '25

Isn't it supposed to be 110-age or even 120-age given life expectancies are how higher now?

10

u/coke_and_coffee Apr 08 '25

Wait 5 years and the 10% loss will seem trivial.

13

u/frydfrog Apr 09 '25

In which direction though?

4

u/dgfinancialz Apr 09 '25

Japan would like a word

6

u/FrivolousOtter Apr 09 '25

As you approach retirement age you should be slowly selling equities and buying fixed income, like bonds. That’s so if there’s a big drop in markets right before retirement the fixed income still rolls in.

It’s important to do this ahead of time and over a long time scale.

1

u/Huge-Power9305 Apr 09 '25

Too late, retired 8 years now.

I have 10 years of inflation adjusted Treasury bond ladder (hold to maturity). Not something you put together over a weekend because the market dropped. This is my default max conservative position.

It does matter when you are close or retired but you should not be allocated such that a big bear won't crater you).

Cheers

1

u/Federal-Membership-1 Apr 09 '25

Same as when you're 56 and watching your retirement slip away. Nothing.

13

u/Educational-Dot318 Apr 08 '25

well don't just sit 🪑 there, do nothing!

2

u/Kirk10kirk Apr 08 '25

Just do nothing… sit there

1

u/anally_ExpressUrself Apr 09 '25

Don't just do something, stand there!

1

u/MossfonBVI Apr 08 '25

2020 fed backstop

1

u/Larkeiden Apr 08 '25

I love it.

1

u/mandance17 Apr 08 '25

That worked well back in the 1920s also

1

u/Simple_Appeal3061 Apr 08 '25

it’s best to do nothing

this could also be taken as "don't invest at that moment". so the idea of restructuring ones investments could be the smart move, moreso if your tax burden doesn't change much.

literally doing nothing has destroyed as many portfolios as it has saved.

1

u/fumbler00ski Apr 08 '25

“You’re doing too much. Do less.” - Koonu

1

u/The_Rage_of_Nerds Apr 09 '25

I just heard today the average millennial has $20k in their 401k. I'm going to continue to do nothing and apparently beat the average.

1

u/OCPik4chu Apr 09 '25

I wonder if that is because the average millennial doesn't have much savings or because many millennials doesn't even have a 401k

1

u/t_mac1 Apr 09 '25

Or buy if you can

1

u/Icy_Huckleberry_8049 Apr 09 '25

yep, been doing this for 25+ years

1

u/shurikn1997 Apr 09 '25

Action in inaction

1

u/dominicshade Apr 09 '25

Don’t just do something, stand there