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Old 06-15-2011, 11:20 AM   #41
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Are we going to get a Robert Kiyosaki pitch now?
Is your ego bruised because I didn't take your advice to diversify?
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Old 06-15-2011, 12:12 PM   #42
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Are we going to get a Robert Kiyosaki pitch now?
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Old 06-15-2011, 01:11 PM   #43
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Is your ego bruised because I didn't take your advice to diversify?
Not hardly. Its just that there is a certain pattern with new posters here and when someone comes in touting the merits of an asset class with strong recent performance and then suddenly switches to phrases mostly used by hucksters and late night infomercials, I have an inkling of what I might see next.
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Old 06-15-2011, 01:20 PM   #44
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The thing I've come to realize is that saving and having a bunch of money in a retirement account doesn't mean a thing. You can't even access it until you're 65 years old...
Wrong, very wrong. That isn't the correct age, and there are two exceptions, including one that will allow you tax-penalty free access to your retirement money at any age.

Your above statement is an example of why you're taking such a whoopinspankin' on this board. It is obvious you need additional education on financial matters. I'm confident your investing style will almost certainly provide that for you as we all learn from our mistakes - especially the really financially painful ones.
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Old 06-15-2011, 01:37 PM   #45
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I would just give it all away and become a monk if I were you.............
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Old 06-15-2011, 01:47 PM   #46
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Although the OP may not take the counsel of Brewer, Nords, et al on this thread, it is incredibly useful to those of us who continually contemplate our diversification plans and the direction of the US and global economy.

Brew and others, thanks very much for your impressive insight into why these kinds of posts make me sweat. I still remember so vividly reading about (don't mean to pick on him, but it was one of the first that stuck with me) Collector's bank stock. And his return to work.

I just can't imagine thinking I'm smart enough to predict things in my spare time. Hell, I only work 40 hours a week (in the biz no less) and wouldn't have bandwidth to read enough to reach any kind of firm assurances that commodities are all I want to own.

There are some real gems in here about why we diversify and why our risk tolerances change, not only with age, but also with circumstances. Thanks, y'all.
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Old 06-15-2011, 02:59 PM   #47
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Hi NBW,

One thing I don't understand about your diversification argument. You seem to be under the impression that diversification has to hurt your returns. But that's not always the case, it primarily just reduces risk.

Is there any reason you can't diversify into other asset classes that are equally risky that you also think has a high likelihood of returns?

i.e. you think both Precious Metals is the hot sector, but you also think that Emerging Markets and Small Cap International also have a high likelihood of returns. Instead of putting all your chips on Precious Metals, also spread them around to other sectors with high expected returns. It would still be a very risky, very aggressive portfolio, but now you aren't placing a single bet where you'll either win big or lose big.

There's a reason you aren't (presumably) putting all your money on a single stock in Precious metals. And that's because it's not worth the risk of being wrong on a single stock. That same philosophy applies to also splitting money in other high growth sectors; whatever you believe those sectors will be.

Regardless, best of luck on your portfolio.
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Old 06-15-2011, 03:06 PM   #48
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Ah, you just like the thing about alien anal probes resulting in investing prescience.
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Old 06-15-2011, 03:48 PM   #49
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Old 06-15-2011, 04:03 PM   #50
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Hi NBW,

One thing I don't understand about your diversification argument. You seem to be under the impression that diversification has to hurt your returns. But that's not always the case, it primarily just reduces risk.

Is there any reason you can't diversify into other asset classes that are equally risky that you also think has a high likelihood of returns?

i.e. you think both Precious Metals is the hot sector, but you also think that Emerging Markets and Small Cap International also have a high likelihood of returns. Instead of putting all your chips on Precious Metals, also spread them around to other sectors with high expected returns. It would still be a very risky, very aggressive portfolio, but now you aren't placing a single bet where you'll either win big or lose big.

There's a reason you aren't (presumably) putting all your money on a single stock in Precious metals. And that's because it's not worth the risk of being wrong on a single stock. That same philosophy applies to also splitting money in other high growth sectors; whatever you believe those sectors will be.

Regardless, best of luck on your portfolio.
Don't confuse a risky portfolio with either win big or lose big.... it might not move at all.... for years....
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Old 06-15-2011, 11:37 PM   #51
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The thing I've come to realize is that saving and having a bunch of money in a retirement account doesn't mean a thing. You can't even access it until you're 65 years old, and who knows if you'll even be alive then. I still have to deal with difficult clients, run to meetings, put out fires, etc. in order to make money and pay the bills. I'm not financially free. I cannot delegate the work I do to other people, because I am being paid for my artwork and design services, so I'm the one that has to do it.
When people suggested sharing the workload, they didn't necessarily mean hiring someone that will be your clone - an 'assistant' can be doing something in the office or running an errand while you're stuck with a client for 3 hours....or can drop you off someplace while they run another errand to cut your running around in half.
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Old 06-16-2011, 01:46 AM   #52
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The thing I've come to realize is that saving and having a bunch of money in a retirement account doesn't mean a thing. You can't even access it until you're 65 years old, and who knows if you'll even be alive then. I still have to deal with difficult clients, run to meetings, put out fires, etc. in order to make money and pay the bills.
"72t" withdrawals allow (as REWahoo said) penalty-free access to IRAs at any age, according to one of three formulas. I use the simplest one, and will withdraw a bit over 3% (of my Dec 31 2010 balance) this year as someone in my early 50s.
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Old 06-16-2011, 10:01 PM   #53
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nbw888, I think you are headed in the right direction. You sound like a man with a plan unlike me or many others in this world. I wish you well even though I know you will succeed. Good luck. oldtrig
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