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04-13-2017, 12:19 PM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Are You Good With Money?
Are You “Good with Money?” | The 10th Man Investment Newsletter | Mauldin Economics
Straightforward quality article about dealing with money before and after retirement. This is a bit different from the heavily plowed furrows that we may see all day every day.
Ha
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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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04-13-2017, 12:23 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,000
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Good to see me and my fellow Texans are number one!
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Numbers is hard
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04-13-2017, 12:28 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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That's me, I am that article.
Including never making more than 5 figures when I was working and becoming a millionaire not withstanding.
Yeah, good stuff and easy too.
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04-13-2017, 01:01 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Add that to the scorpions and rattlesnakes in your Texas sales spiel.
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04-13-2017, 01:18 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 6,496
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Based on the article my money management skills are truly awesome.
In any case I am very comfortably retired. And, can not even remotely be accused of being Texan.
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There must be moderation in everything, including moderation.
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04-13-2017, 01:36 PM
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#6
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,290
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Quote:
Originally Posted by ls99
Based on the article my money management skills are truly awesome.
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Yep, I do all those things too.
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When I was a kid I wanted to be older. This is not what I expected.
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04-13-2017, 01:38 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,975
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Great basic info that sums it up nicely. It's not all that complicated.
I always thought I was good with money since I tend to hang onto it.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
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04-13-2017, 01:54 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,308
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"3) Maybe Invest It. I say maybe, because investing isn’t for everyone. Most people are bad investors. Most people are better off with cash in a bank account or CD."
Hopefully few are stupid enough to take this advice.
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04-13-2017, 01:56 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,148
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Simple, not easy as I often say. I used to tell my employees (who made well above average wages) time and time again, you have to live below your means if you ever want to reach financial independence and retire - whether you make $40K/yr or $400K/yr. But I was usually met with 'we don't want to learn about investing, just tell us what stocks to buy that'll make us rich' or 'yeah, easy for you to say since you make more than we do.' They never could grasp it's not how much you make as much as how much you keep...
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No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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04-13-2017, 02:01 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by OldShooter
"3) Maybe Invest It. I say maybe, because investing isn’t for everyone. Most people are bad investors. Most people are better off with cash in a bank account or CD."
Hopefully few are stupid enough to take this advice.
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I've known and still know plenty people for whom this is excellent advice. If you avoid fire, you won"t get burned.
One of my brothers is very comfortably retired in spite of never making a high salary, and he has always looked for and bought the best CDs he could finds, and kept it up.
Ha
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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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04-13-2017, 02:07 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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The chart showing the average credit score getting progressively higher as one goes north is very interesting.
Some time ago, I read that people in colder climates tend to be more independent and self-reliant. Perhaps that trait, which is driven by the required survival skills due to the environment, also drives them to borrow money less.
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"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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04-13-2017, 02:08 PM
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#12
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Moderator Emeritus
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,543
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According to the article, I'm good with money. Probably, but I could have saved more when I was young.
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04-13-2017, 02:14 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,975
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Quote:
Originally Posted by haha
I've known and still know plenty people for whom this is excellent advice. If you avoid fire, you won"t get burned.
One of my brothers is very comfortably retired in spite of never making a high salary, and he has always looked for and bought the best CDs he could finds, and kept it up.
Ha
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I agree. Even with a less than optimal plan you can exceed about 95% of the general population.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
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04-13-2017, 02:25 PM
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#14
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Full time employment: Posting here.
Join Date: Oct 2014
Posts: 566
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Great simple article, easy to read.
This jumped out at me.
"People lament the tragic state of financial literacy in this country. It is indeed tragic. But imagine for a second that President XXXX would put aside a billion dollars for financial education. Basic financial literacy, balancing a checkbook, paying taxes, that kind of stuff."
Back in the 70s when I was in HS these subjects were taught for a whole semester. We even went through the 1040 forms and simulated our own businesses for a few weeks. Public High School, not some business course for braniac teenagers. I can't imagine anyone not knowing how to do this.
Is this not curriculum today? I know Charles J Givens always said Americans were financially illiterate, but was he exaggerating? Or not?
_B
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04-13-2017, 02:37 PM
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#15
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,155
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Quote:
The funny thing about being good with money is that it doesn’t necessarily mean being smart. I know plenty of dumb people who are great with money. I know certifiable geniuses who always seem to be broke. I do think there is a correlation with intelligence, but I think it is rather weak. Maybe even negative at the upper reaches of IQ.
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This is a remarkable observation. I don't know if it's generally true, but I do know a person who takes pride in his IQ, yet has lived on a shoestring all his life and has been deeply in debt for decades. Relatives have bailed him out repeatedly but he gets right back in trouble again. He belongs to several elite societies where an astronomical IQ is the only criterion for membership. He also likes to brag about what a smart businessman he is, a "highly respected expert in his field." He has had his own one-man business for 40 years but has run it more like a hobby than a business. It's worth far less today than it was 20 years ago, and is mortgaged to the hilt.
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04-13-2017, 02:46 PM
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#16
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,290
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Quote:
Originally Posted by Beldar
Back in the 70s when I was in HS these subjects were taught for a whole semester. We even went through the 1040 forms and simulated our own businesses for a few weeks. Public High School, not some business course for braniac teenagers. I can't imagine anyone not knowing how to do this.
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Without question the two most useful classes I had in high school were typing and a class in personal finance. The one in personal finance was one that I actually enjoyed to the extent that I'd read ahead of the material to be covered. Then in class if I nodded off the teacher would be a bit frustrated when she directed a question at me and I knew the answer. But it was an optional class and not required. I just took it because I knew it would be of practical use later, unlike most classes, which I considered as useful as "underwater basketweaving".
__________________
When I was a kid I wanted to be older. This is not what I expected.
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04-13-2017, 02:53 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
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Didn't read the article but I know I am great with money. Made a ton, gave away a ton , and still have a ton. Money just seems to come my way. Seems second nature to me but I know for most people it is not.
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04-13-2017, 02:55 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Apr 2006
Location: North Bay
Posts: 1,246
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Quote:
Originally Posted by OldShooter
"3) Maybe Invest It. I say maybe, because investing isn’t for everyone. Most people are bad investors. Most people are better off with cash in a bank account or CD."
Hopefully few are stupid enough to take this advice.
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While this may not be the best investment advice, putting money in a CD will do a lot more for your retirement than blowing it on beer or speedboats or vacations in Vegas.
Quote:
Originally Posted by NW-Bound
The chart showing the average credit score getting progressively higher as one goes north is very interesting.
Some time ago, I read that people in colder climates tend to be more independent and self-reliant. Perhaps that trait, which is driven by the required survival skills due to the environment, also drives them to borrow money less.
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I agree... Surviving harsh long winters and retiring comfortably both require the mindset of foregoing comforts today to ensure later success.
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04-13-2017, 03:21 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Nov 2009
Location: SF East Bay
Posts: 4,321
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Quote:
Originally Posted by haha
This is a bit different from the heavily plowed furrows that we may see all day every day.
Ha
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I don't know that it's really all that different from many other similar articles I've read - except perhaps for the map showing variations in average credit scores from state to state. This is not meant to criticize, as the info is good basic advice, that many would do well to follow. For us folk here, it's fun to read, and it confirms that we are all good with money.
I agree with his general thoughts on how there isn't necessarily a correlation between intelligence and financial sense - or between financial sense and anything else, really.
Thanks for posting this. I have a good friend who I dearly wish would follow the advice in this article. I doubt that she'll ever take it fully on board, but I have at least been able to coax her away from the edge of financial disaster.
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Contentedly ER, with 3 furry friends (now, sadly, 1).
Planning my escape to the wide open spaces in my campervan (with my remaining kitty, of course!)
On a mission to become the world's second most boring man.
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04-13-2017, 03:49 PM
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#20
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,290
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Quote:
Originally Posted by Major Tom
I agree with his general thoughts on how there isn't necessarily a correlation between intelligence and financial sense - or between financial sense and anything else, really.
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That was one of the frustrating things with my ex. She was otherwise very intelligent but simply could not deal with handling money. When she wanted to take out a loan to go on a trip it was over. I saw no future (at least not a good one) going down that road.
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When I was a kid I wanted to be older. This is not what I expected.
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