Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 07-14-2009, 12:25 PM   #21
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,692
You can read about it here

Conversation - #6 Oct/Nov 93
Transforming Your Relationship With Money - A Complete Workbook & Audio CD Course - The Institute for Earth Education



Quote:
Originally Posted by Telly View Post
About Joe Dominguez...



What I had heard, was that as inflation wittled away his real income, he was forced into a lower and lower, and lower, standard of living.

If you or anyone else can find a link to info on his personal finances, I'd be interested to read it. What I had found on him on internet was the same-old same-old of book reviews, "we love Joe's message", etc. etc., but nothing about the other side.

Now, if he really did give away any $ he earned above and beyond the income from his "portfolio", if you could call it that, and willingly subjected himself to ever-more dire circumstances just to prove his original "plan", then I would say "What a guy... a true believer in his convictions".
But I would cringe at the thought of someone following his lead.
__________________

__________________
Running_Man is offline   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!

Old 07-14-2009, 01:33 PM   #22
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,692
http://http://www.time.com/time/maga...983666,00.html

Time Magazine talking about their charity, literally gave away a fortune. This story was written in 1995 2 years before Joe Dominguez died.

Several times I have seen it posted that if you go to all income you'll end up like Joe Dominguez but he was not living as he was for a lack of funds, he had all the funds he wanted.
__________________

__________________
Running_Man is offline   Reply With Quote
Old 07-14-2009, 03:11 PM   #23
Recycles dryer sheets
 
Join Date: May 2009
Location: Ottawa and Fort Myers
Posts: 488
when pushing into your eighties, would it not make sense to convert to simple fixed annuities (no guaranteed return of capital) with a 25% inflation buffer built in - split the balance not required for this between equities and fixed income...add to the annuity as required...residual to heirs when you pass?

if there are no heirs, why not dump the wad in annities, hopefully with enough margin to cover inflation. That way you know what you have to spend each year without worry.

PS

rough estimate for life annuity monthy income of $100K invested by age

60-> $621
70-> $775
80-> $1102
__________________
Kroeran is offline   Reply With Quote
Old 07-14-2009, 03:14 PM   #24
Recycles dryer sheets
 
Join Date: May 2009
Location: Ottawa and Fort Myers
Posts: 488
Quote:
Originally Posted by . . . Yrs to Go View Post
I'm with REWahoo. Diversification is the only free lunch in finance.

10-yr treasury bonds are yielding 3.3%. The S&P 500 is yielding 3.0% (according to my Bloomberg terminal). Not much of a yield pick up in treasuries. And principal protection? The current 10-yr treasury would lose more than 40% of its current market value if interest rates spiked to 10% (which some folks are calling for). So they ain't exactly riskless, either.
if there is an interest rate spike, that would be the time to lock in annuities, right?
__________________
Kroeran is offline   Reply With Quote
Old 07-14-2009, 03:21 PM   #25
Recycles dryer sheets
 
Join Date: May 2009
Location: Ottawa and Fort Myers
Posts: 488
Quote:
Originally Posted by ziggy29 View Post
Our economy is based on a mindset where the best way to build wealth is to be a saver among a vast sea of spenders.
maybe the interest rate is the price of borrowing, and that is determined by supply and demand - demand can come from productive investment such as for capital and mortgages, but as well unproductive credit card debt and government borrowing.
__________________
Kroeran is offline   Reply With Quote
Old 07-15-2009, 10:34 AM   #26
Recycles dryer sheets
 
Join Date: Oct 2008
Posts: 295
I agree with him, but alot sooner than he said.. Prior to my Being able to retire? I moved over 75% of my Wealth into A "Flexible" Bond portfolio, that included those IShares in Global and EMD's, only because? Many of my reg. Limo Clients strongly suggested to go the All bond route ..

Since 99'? I haven't looked back and It has done as well as Owning Balanced Funds and the Yields have been More than enough to allow me to reinvest 3% of the ave of 6.75% apy on them a yr to maintain Inflation and then some..not to mention their Growth ( ave 11.75% a[y past 10 yrs combined now)

IF the next 10 yrs are anythng like the past? Who Needs Equities? The heck with them!
__________________
Dennis is offline   Reply With Quote
Old 07-15-2009, 12:15 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by Dennis View Post
IF the next 10 yrs are anythng like the past? Who Needs Equities? The heck with them!
But they won't be, because the era of inflation or superinflation is almost upon us. Better look at the duration of your bond funds now, because when interest rates go up,you'll see a haircut like Custer got at the Battle of Little Big Horn..........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 07-15-2009, 12:54 PM   #28
Recycles dryer sheets
 
Join Date: May 2009
Location: Ottawa and Fort Myers
Posts: 488
the other side of the argument is that this monetarist stimulation will not work due to the classic monetarist liquidity trap that was faced in the 30s...pushing out money and no-one spending, like pushing a string, because we have all become like our depression era grandparents, FIRE forum members and the Japanese...which points to lots of savings and greatly reduced spending and borrowing for at least a couple of generations...which points to indefinitely low interest rates and commodity prices, unless we can find another set of suckers (borrowers) for the ponzi scheme.

In such a situation, the next step is the Kensian defence, which is, if the public won't spend, government must, and beyond the levels of the New Deal, and rather at the levels of WWII to work. As long as debt to GDP does not outpace WWII levels, I am not sure we should be concerned.
__________________
Kroeran is offline   Reply With Quote
Old 07-15-2009, 01:11 PM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by Kroeran View Post
In such a situation, the next step is the Kensian defence, which is, if the public won't spend, government must, and beyond the levels of the New Deal, and rather at the levels of WWII to work. As long as debt to GDP does not outpace WWII levels, I am not sure we should be concerned.
I think the current Administration is already doing this, and they believe it will work. I think World War II spending levels will be FAR surpassed.......
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 07-15-2009, 01:27 PM   #30
Recycles dryer sheets
 
Join Date: May 2009
Location: Ottawa and Fort Myers
Posts: 488
in terms of percent of GDP?

answering my own question

http://www.chrismartenson.com/blog/c...debt-gdp/11570
__________________
Kroeran is offline   Reply With Quote
Old 07-15-2009, 02:47 PM   #31
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
So, do you believe me now?
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 07-15-2009, 03:26 PM   #32
Recycles dryer sheets
 
Join Date: May 2009
Location: Ottawa and Fort Myers
Posts: 488
would it not make sense to move into Canadian dollar denominated instruments?

not much debt

"OTTAWA, July 9 (Reuters) - Canada still aims to reduce its debt-to-GDP ratio to 25 percent, Finance Minister Jim Flaherty said on Thursday, but he could not say how long it might take to reach that goal, which was abandoned during the recession.
Before the global financial crisis, the Conservative government had pledged to reach the 25 percent target by 2011-12. But the budget in January of this year said the debt-to-GDP ratio would rise to about 32 percent in March 2011 from 29 percent and there was no reference at all to the 25 percent target."
__________________
Kroeran is offline   Reply With Quote
Old 07-15-2009, 04:58 PM   #33
Recycles dryer sheets
 
Join Date: Oct 2008
Posts: 295
Quote:
Originally Posted by FinanceDude View Post
But they won't be, because the era of inflation or superinflation is almost upon us. Better look at the duration of your bond funds now, because when interest rates go up,you'll see a haircut like Custer got at the Battle of Little Big Horn..........
Re:Yes, FD and I hope it does! Sound nuts? Well As I recall, way back when, during the Carter Yrs, what was the Interest rates on those LT Treasuries? 15%? for nice 30 yr one's?

I'd be happy to (a) Sell most of my Bonds now and (b) Buy 20 yr LT treas. paying even 8-10% an paying 2 to 2.5% every Qtr? In can take out just 1 qtr ( 2.25%) I need to pay my bills and Reinvest the other 3 qtrs back in My Current Bonds at the Newer rates.. That's the advantage of Owning them in Funds vs Directly. and keeping my Global with Pimco and EMD's with Fido..

The Treasuries will be Bought Directly, thru Treasuary Direct

at least that's the Game plan..

FYI? In 00' I did dump 75% of my other bonds and bought all Treasuries ( VFITX and VUSTX) and did the same in 2nd qtr of 2007..
& sold them In Oct/Nov of 08' and back in with the other 25% that was in my other Bonds..in Jan 09' and that came out ok.

I use the 20/50wk moving ave , Rick Santelli, Wm. Larkin over at Cabot Mgmnt. + Bill Gross & El H. to give me the Red Flags when to be looking at doing this..along with other Advisory sources..

It's a Constant game of Musical Chairs with Bonds, just like with Equities..
__________________
Dennis is offline   Reply With Quote
Old 07-15-2009, 07:15 PM   #34
Recycles dryer sheets
 
Join Date: May 2009
Location: Ottawa and Fort Myers
Posts: 488
I remember Dad going to the CD broker to roll over a largish bag of cash when interest rates were 18% at the peak...and I said "LOCK IN FOR 5 YEARS!!"

"LOCK IN FOR 5 YEARS!!!!"

he did three years,thinking rates would go higher

I was so mad. Almost as mad as the time he came back from a Florida trip and had bought a mobile home on a leased lot instead of buying a real house.

those were the only 2 mistakes he made, however
__________________

__________________
Kroeran is offline   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
Transitioning part of portfolio into fixed income? Synergy FIRE and Money 32 11-27-2007 04:36 AM
Choice for fixed income portion of portfolio Bart523 FIRE and Money 15 08-23-2006 06:07 PM
Is this ok as Fixed Income pat of portfolio nun FIRE and Money 13 04-27-2006 01:47 PM
Fixed Income / Dividend Portfolio ferco FIRE and Money 4 06-18-2005 12:47 PM
Fixed Income Portfolio Help DFW_M5 FIRE and Money 4 01-12-2004 03:53 PM

 

 
All times are GMT -6. The time now is 07:15 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.