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Old 05-03-2011, 03:03 PM   #41
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Definately not baseball. No one has ever said marriage or divorce was boring.
That from our northern friends who think curling is a sport?
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Old 05-03-2011, 04:22 PM   #42
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Senin, welcome to the board.

I second nun's and GregLee's comments: as you already have a secured retirement income - arguably not 100% guaranteed, but as close to it as one can reasonably get - you can, and probably should, afford to be somewhat aggressive with your personal investing. Nothing fancy, but think (dividend) stocks, not bonds.

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I would like to know how a person gets a $100,000 COLA'd pension from the Gov.
This should explain everything: "California Prison Academy—Better Than a Harvard Degree".
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Old 05-04-2011, 12:20 AM   #43
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Why are divorces so expensive?



Because they're worth it.
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Old 05-04-2011, 03:34 AM   #44
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Senin, welcome to the board.

I second nun's and GregLee's comments: as you already have a secured retirement income - arguably not 100% guaranteed, but as close to it as one can reasonably get - you can, and probably should, afford to be somewhat aggressive with your personal investing. Nothing fancy, but think (dividend) stocks, not bonds.

This should explain everything: "California Prison Academy—Better Than a Harvard Degree".

Thanks Milton. Very interesting.

I don't think I would actually need much extra cash/dividends. A steady growth would be good. Just would like the security in case another Big Recession hit (and took a solid chunk of assets out).
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Old 05-04-2011, 09:55 AM   #45
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"If you could invest 10k-20k of that 100k to protect against future contingencies -- like hyperinflation or catastrophic illness -- that might be prudent."
That was a great comment. I never thought of continuing to invest the 100k pension, I was just thinking of taking. Of course the investment better be pretty darn safe.

This is a little silly.

At first, you were ready to spend the $10k-$20k, presumably on stuff you didn't really want anyway, so you were already prepared to watch the money completely disappear every year. Now, faced with the prospect of investing it, you need a "darn safe" investment vehicle so you won't experience losses?

You were just prepared to part with all of it, now you can't bear to lose any of it?
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Old 05-04-2011, 02:15 PM   #46
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That from our northern friends who think curling is a sport?
I prefer to see Canucks beating Nashville. It seems so international...plus it reminds me of divorce when I look at the stick-handling around the net!

(And the body slams along the boards...)
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Old 05-04-2011, 09:28 PM   #47
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This is a little silly.

At first, you were ready to spend the $10k-$20k, presumably on stuff you didn't really want anyway, so you were already prepared to watch the money completely disappear every year. Now, faced with the prospect of investing it, you need a "darn safe" investment vehicle so you won't experience losses?

You were just prepared to part with all of it, now you can't bear to lose any of it?
Your point is perfectly valid. But who among us can honestly say that his or her thinking is entirely free of contradictions?
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Old 05-05-2011, 10:45 AM   #48
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But who among us can honestly say that his or her thinking is entirely free of contradictions?
Or even modestly free of them?

Ha
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Old 05-05-2011, 01:48 PM   #49
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Or even modestly free of them?

Ha
OK I will!
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Old 05-05-2011, 07:58 PM   #50
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Senin, are you in safety? Just curious.
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Old 05-06-2011, 05:04 AM   #51
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Yep, safety.

I like Greg and Nun's comments.

The 100k should do very nicely the first 10 years or so. My expenses are modest, so probably the following 10 years also. Things should be smooth sailing, unless I run into another 'Great Recession'.

The real key would be the right investments.
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Old 05-06-2011, 08:33 AM   #52
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Yep, safety.

I like Greg and Nun's comments.

The 100k should do very nicely the first 10 years or so. My expenses are modest, so probably the following 10 years also. Things should be smooth sailing, unless I run into another 'Great Recession'.

The real key would be the right investments.
The real key will be living on less than that 100k cola. Then the investments are gravy.
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Old 05-06-2011, 09:16 AM   #53
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Back to the OP's question. I think some evaluation of the financial stability of the pension fund involved would be prudent. I recall reading that the average muni pension is 35% underfunded. This will have to come to a head at some point. I think building up a solid plan B that can withstand a reduced benefit in the future would be a good idea.
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Old 05-06-2011, 09:46 AM   #54
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I agree that the blue chip DB pensions will have to give. Not this year, but certainly within a retirement planning horizon. It has already happened in the private sector.
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Old 05-06-2011, 02:24 PM   #55
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Back to the OP's question. I think some evaluation of the financial stability of the pension fund involved would be prudent. I recall reading that the average muni pension is 35% underfunded. This will have to come to a head at some point. I think building up a solid plan B that can withstand a reduced benefit in the future would be a good idea.
There are all sorts of ballot measures on "pension reform". Basically making current workers pay much much more into the retirement systm.
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