Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Happy New Year- Resolutions
Old 01-01-2004, 02:03 PM   #21
 
Posts: n/a
Re: Happy New Year- Resolutions

Quote:
but I also find your comments regarding other peoples preferences to be a little smug. *(A little more time and experience will take care of that). *Your remark about stocks being the only safe investment over a period of time sticks out.
Jarhead,

I think if you go back and reread my post, you will see that it is my preference for my current situation. And for my current situation and growth requirements, stocks are the 'safest' bet for me. *And as I had said my situation may change. John had said that he did not understand why anyone would load up on stocks in ER, and I was only explaining my reasons.

If a person prefers real estate properties for their retirement portfolio that is their decision. It however does not change the historical risk/reward equation. And real estate is considered a bigger risk than stocks. Again, not my opinion.

I have read enough investment books to know what investments are considered 'safer' and what are considered 'riskier'. If a person only needed a 1% return over the long haul to sustain his lifestyle, I would not recommend stocks in any way shape or form.

Sorry for any miscommunication :-/
__________________
  Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Happy New Year- Resolutions
Old 01-01-2004, 08:42 PM   #22
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Re: Happy New Year- Resolutions

Quote:
The more money that you have the easier the planning gets. (As long as you don't increase your standard of living)
Cut-Throat, you're sure right about that. Someone here said he can live off the income from his taxable accounts, without touching his retirement accounts, and without even touching the principal in his taxable accounts. It must be nice. I'm afraid I'll never see that kind of money. But I should be able to make it with a 35%-40% stock exposure. I'd like to go 100% with fixed income, but it squeezes me a little too much. Maybe in a few years.
__________________

__________________
Bob_Smith is offline   Reply With Quote
Re: Happy New Year- Resolutions
Old 01-02-2004, 03:23 AM   #23
 
Posts: n/a
Re: Happy New Year- Resolutions

Hello cut-throat and Bob_Smith. Re. living off the income
without touching your "base", I've been able to do it so far, but it's been mostly luck. However, unless I
face a future disaster (galloping inflation, major uninsured health issues)
I figure I can continue forever. I am to the point
where I am close to drawing off the income from my IRA,
closely followed by SS benefits, and maybe later a small
inheritance. So, I've turned the corner, so to speak
just by the passage of time. I also have the backup
option of a reverse mortgage in case things got
really hairy. IMHO, if you are doing ER on the cheap
(like I did), there is absolutely no substitute for cutting back your spending. My pretax income is a fraction
of what I once paid for rent alone. Amazing but true.

John Galt
__________________
  Reply With Quote
Re: Happy New Year- Resolutions
Old 01-02-2004, 03:29 AM   #24
 
Posts: n/a
Re: Happy New Year- Resolutions

Hello cut-throat and Bob_Smith. Re. living off the income
without touching your "base", I've been able to do it so far, but it's been mostly luck. However, unless I
face a future disaster (galloping inflation, major uninsured health issues)
I figure I can continue forever. I am to the point
where I am close to drawing off the income from my IRA,
closely followed by SS benefits, and maybe later a small
inheritance. So, I've turned the corner, so to speak
just by the passage of time. I also have the backup
option of a reverse mortgage in case things got
really hairy. IMHO, if you are doing ER on the cheap
(like I did), there is absolutely no substitute for cutting back your spending. My pretax income is a fraction
of what I once paid for rent alone. Amazing but true.

John Galt
__________________
  Reply With Quote
Re: Happy New Year- Resolutions
Old 01-02-2004, 03:41 AM   #25
 
Posts: n/a
Re: Happy New Year- Resolutions

Oops! I posted the same comments twice and then missed the request by Bob_Smith to share my current
allocation. Here it is.

Cash (bank money markets) 10%
Real estate (including residence) 45%
Investment grade bonds 30%
Bond funds (some junk) 15%

All bonds are long term but callable. Current average yield around 7%.

John Galt
__________________
  Reply With Quote
Re: Happy New Year- Resolutions
Old 01-02-2004, 10:50 AM   #26
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Re: Happy New Year- Resolutions

Thanks John,

That's not too far from where I plan to be except I'll have mostly stock funds where you have real estate. Comments posted here by you, Cut-Throat, and Ted have led me to do some research on real estate. After some study on the issue, I plan to add about 5% of my total portfolio to the Vanguard REIT fund. Next I plan to look into High Yield Bonds.

I have a brother in the Twin cities who has made a ton of money by buying and selling real estate. For example, he bought his log home for about $250,000, put about $125,000 into improvements, and could get $750,000 for it today, about four years later. (Cut-Throat, it's a few miles from Stillwater.) I'm not the high flyer he is, but I have toyed with the idea of buying a small house and renting it out, or possibly a duplex and renting one side and living in the other.
__________________
Bob_Smith is offline   Reply With Quote
Re: Happy New Year- Resolutions
Old 01-02-2004, 11:31 AM   #27
Recycles dryer sheets
 
Join Date: Dec 2002
Posts: 290
Re: Happy New Year- Resolutions

This is my recommendation for TH.

Skip the dieting phase. Go directly to your weight maintenance phase. Eat what you intend to once you have shed the pounds. Doing that means permanent weight loss with little strain, if any.

I recommend against planning to lose 30 pounds. Set your goal at 20 pounds or less. Also, be sure not to lose more than 2 or 3 pounds per month. If you lose it faster, which is quite tempting, you are in danger of putting it back on. Remember, your goal is a permanent weight loss, not a dieting yo-yo.

What is more, if you try to lose weight rapidly, your body will fight back. Your metabolism will drop as your body goes into its survival mode.

After you have lost 20 pounds, you might consider losing ten more. But be careful. It is much better to hold a steady weight than it is to shed those last ten pounds.

Think about it. If you lose 2 or 3 pounds per month, you will have met your goal well within a year. And, much more important, you will never put those pounds back on.

Have fun.

John R.

P.S. Your girl friend has the right idea. That's the right way to splurge.
__________________
JWR1945 is offline   Reply With Quote
Re: Happy New Year- Resolutions
Old 01-02-2004, 11:48 AM   #28
Recycles dryer sheets
 
Join Date: Dec 2002
Posts: 290
Re: Happy New Year- Resolutions

This is my answer to John Galt's question.

Your aunt probably remains in stocks because she feels comfortable with them. If she has held stocks for years, she probably has enough experience with the market to accept its fluctuations in stride.

I am not saying that this is what she should do. I am suggesting that this is why she does what she does.

In addition, she may be very satisfied with her financial condition even though she is not wealthy. Her desires are likely to be much less than ours because of her age. When you compare her vision of a good life as a child and as a young adult with today's reality, she may be rich in her own eyes. Think back to your childhood and think about things like owning a car and owning a television. Cars as comfortable as today's were luxuries. We even have air conditioning! And our inexpensive color televisions ($200 to $400) are much more capable than the black and white sets with small screens from yesterday.

She may intend never to dip into her stock portfolio. She may be holding them in trust for her heirs. That is why I hold stocks. I don't need them for myself. My pension is more than enough to cover my needs. Of course, the portfolio might come in handy to handle an unexpected, unknown emergency of some kind.

Have fun.

John R.
__________________
JWR1945 is offline   Reply With Quote
Re: Happy New Year- Resolutions
Old 01-02-2004, 03:05 PM   #29
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Re: Happy New Year- Resolutions

Cut-Throat,

That is a nice area. Haven't been to the Wisconsin side. My brother is just east of Marine on St. Croix, maybe a mile or two from there. He has seven acres and a massive log house. He bought it as an investment, but now he can't bear to part with it. Property in that area has exploded in value the last few years.
__________________
Bob_Smith is offline   Reply With Quote
Re: Happy New Year- Resolutions
Old 01-02-2004, 10:01 PM   #30
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Re: Happy New Year- Resolutions

Yes, Cut-Throat, I meant west. I'll pass the Bob White link on to my brother.
__________________
Bob_Smith is offline   Reply With Quote
Re: Happy New Year- Resolutions
Old 01-03-2004, 05:14 AM   #31
 
Posts: n/a
Re: Happy New Year- Resolutions

Hello cut-throat. Every summer we take at least one
motorcycle ride along the Mississippi. We angle north from north central Illinois to LaCrosse, then ride along the river, up the Wisconsin side and back down the Minn. side (or vice versa). Farthest north we ever got before
turning back was Red Wing. Beautiful country,
especially on a motorcycle.

John Galt
__________________
  Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Adjusting Fire Calc for a mid year exit USK Coastie FIRE and Money 1 02-02-2007 11:26 AM
Year One REWahoo Other topics 23 05-31-2006 03:38 PM
FireCalc: Year 1, 2, etc kat FIRE and Money 16 02-02-2006 10:41 AM
Year of the Dog Spanky Other topics 2 01-29-2006 12:33 PM
Happy New Year & Introduction Lusitan Hi, I am... 13 01-19-2006 10:08 PM

 

 
All times are GMT -6. The time now is 12:32 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.