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Re: Go with TIPs or am I crazy?
Old 06-03-2005, 01:20 PM   #101
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Re: Go with TIPs or am I crazy?

Quote:
Originally Posted by Nords
or wild packs of crazed weasels
Dangit, I got me an asset class to go sell now. I was hoping it'd take off when everyone started buyin' to avoid the weasels.

Then I gotta do something about them 2000 weasels I bin stockpilin'.
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Go with TIPs or am I crazy?
Old 06-03-2005, 01:28 PM   #102
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Re: Go with TIPs or am I crazy?

That's enough weasels for three more Congresses, with some left over for the Dept. of Homeland Defense.

But I digress.........

Seems to me that if you can afford to save 20-30-50% of your income, why not? Of course, tomorrow is guaranteed to no one, so, as with your portfolio, some diversification and rebalancing are required for life to be successful.
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Re: Go with TIPs or am I crazy?
Old 06-03-2005, 01:38 PM   #103
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Re: Go with TIPs or am I crazy?

Quote:
Originally Posted by Have Funds, Will Retire


But I digress.........

...tomorrow is guaranteed to no one...
Sorry to digress as well, but that line stood out for me from the Clint Eastwood movie (he was a thief and Gene Hackman was a bad guy Prez, can't recall the name as usual) where Ed Harris was talking to Clint. I loved that line. Are you quoting that movie or is this a more historical quote that the movie used

(Important questions here....) :
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Re: Go with TIPs or am I crazy?
Old 06-03-2005, 01:48 PM   #104
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Re: Go with TIPs or am I crazy?

Yes, stolen from "Absolute Power"; good movie.
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Re: Go with TIPs or am I crazy?
Old 06-03-2005, 04:21 PM   #105
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Re: Go with TIPs or am I crazy?

LBYM = "Pathologically feverish chasing of ER?"

I think not. FI is half the goal as well. I've saved 40-50% of my disposable income (depending on how you count it) for ten years with no regrets. My house is smaller than it could be, and I drive a 13 year old pickup, but the prospect of being able to do whatever I want in the future, without financial worry is much more enticing than having more stuff now.

It also helps to have friends who either LBTM or live at their means and make less than you.....





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Re: Go with TIPs or am I crazy?
Old 06-03-2005, 07:03 PM   #106
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Re: Go with TIPs or am I crazy?

Quote:
Originally Posted by charlie
I am concerned that we might be headed into a period of slow
economic growth with rising inflation (stagflation). If that occurs,
it is not likely that stock dividends will keep pace with inflation,
IMHO. If anybody has contrary data, please post it.

I don't have any 'data' regarding alternatives to stagflation, but I like the fellow's theory of bubble history below and how it plays out in and on the market. I would appreciate your opinion, et al, because this article + R. Russell's views have tipped (see, I am staying on topic) me over to the dark side.

http://www.howestreet.com/story.php?ArticleId=1088

He has ties to the gold mining industry, so it's probably prudent to discount that portion. I especially like the 'collapse into debt' part which I liken to to what happened to Japan. Japan wishes it had stagflation.

P.S. I own some TIPS, but not even close to the percentages some of you are talking about. You just never know for sure.

DH w/hat in hand?

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Re: Go with TIPs or am I crazy?
Old 06-03-2005, 11:43 PM   #107
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Re: Go with TIPs or am I crazy?

We're saving ~45% of gross because if we spent any more it would just be for status. I guess I could drive a Porsche instead of planning for ER, but why?
...plus we have a special daughter to take care of and plan for.
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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 07:56 AM   #108
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Re: Go with TIPs or am I crazy?

If you don't live high, you won't get used to that lifestyle. I think that once you get used to a certain lifestyle, it is hard to cut back. Though TH and JG are exceptions.

Also, provided you aren't in poverty, adding more stuff isn't going to make you happier. So unless you are chasing status or trying to meet basic needs, LBYM makes sense.

Human nature might lead us to chase status or be competive to some extent, but as "Will Work for Beer" said, it is easier to LBYM if your friends are living a similar lifestyle.
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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 08:06 AM   #109
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Re: Go with TIPs or am I crazy?

Flip side - tweaking up can be hard - if you've spent a lot of time in cheap SOB land - when time in the market and 'old age' arrives (aka 62 & SS) presents you with a gift.

12 years in ER on the cheap - makes some habits too pleasurable/painful to break.

Working on it though - with a little urging from the SO -"you can't take it with you."

Me - I'm not so sure
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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 08:42 AM   #110
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Re: Go with TIPs or am I crazy?

DW just moved $1000 to savings from checking account, like she does every month. I am not depriving myself of anything, that I can think of, and living off pensions. When SS check comes in, next month, I'll begin again buying I-bonds. The Vanguard Index funds are all up, comparing to 3l Dec 04 balances. And I have LBYM for all of my life. Life is good!

Recommended reading: The Progress Paradox, by Gregg Easterbrook. He depicts how Americans have more and more but seem to enjoy it less and less. He claims that we are bombarded daily by the pessimistic viewpoint when our standard of living is better and better. No head in the sand, but I think he's right.
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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 11:18 AM   #111
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Re: Go with TIPs or am I crazy?

LBYM came naturally to me really, I didnt have squat as a kid.

Day before yesterday I dragged an old $19 park bench I bought 10 years ago out from under some trees out back where I left it when I moved here. Pressure washed it and put a coat of paint on it that was leftover from when the house was built, so it now matches my front door. Found an old can of black spray paint and touched up the cast iron parts. Dropped it in front of the front door. My neighbor with the boat, rv and all the other toys that just refinanced his home to buy a bigger RV (because his inlaws got a bigger one) stopped by and said "Where'd you get that? Its kind beat up...although it looks better with the fresh coat of paint". I said "its rustic...and free!". "But you can get a new one for $50...". "Right...you know what that $50 will be worth in 20-25 years?". "Oh yeah..."

By the way, he bought the RV six months ago. Just took it out for its first 2 day outing this past weekend. Had to spend $15k to build a gigantic superstructure next to and behind his house to put it in. I've seen boats that got more use and cost less to just sit in the driveway...
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 01:13 PM   #112
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Re: Go with TIPs or am I crazy?

It's an addiction, much like gambling, in my opinion. People feel good when they buy a big new "thing". Then they get addicted to that rush. Too late they realize it's the getting, not the having, that drives them. Me, patience has always worked well. My friends bought a new powerboat, but now have nothing to tow their wave runners. Gee, I guess we can store/tow/use them for you, yeah I know, heavy burdon on our part, we'll survive.
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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 01:37 PM   #113
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Re: Go with TIPs or am I crazy?

I discovered it was a pain in the butt to have 'stuff', because you have to store and maintain it and eventually sell it when you finally figure out you arent using it.

I'm nearing the end of 2 years of 'divesting' myself of the overload of stuff i bought when I had a macmansion to put it in, and now all the duplicates of what my wife and I had at our separate houses. :P
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 01:58 PM   #114
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Re: Go with TIPs or am I crazy?

I am amazed at the proliferation of ministorage facilities. Peoples houses are full of stuff, so they have to rent a place just to put more stuff. Weird.
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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 01:59 PM   #115
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Re: Go with TIPs or am I crazy?

I thought about a ministore for about 1.2 milliseconds. A new one opened up offering first two months free and $9.95 a month for a small one about 10x6x4.
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 03:13 PM   #116
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Re: Go with TIPs or am I crazy?

Many real estate spectulators who plan to hold land on major high volume roads will build a mini-storage place on it to produce income for taxes and write offs. Look for most to be high rise office buildings in the future.
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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 03:25 PM   #117
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Re: Go with TIPs or am I crazy?

Quote:
Originally Posted by Donner
I am astounded by some posters who claim to be saving 30%-40%- 50% of their income in an almost pathologically feverish chase to ER.* Never would have dawned on me in my 20s and even 30s to set ER as a life goal and to organize my life and finances to achieve it.* Bothers me some that there are so many people in an awful hurry to end their working careers just as quick as they can.*
I am astounded that so few people are not thinking of attaining financial independence. *I wish I had been thinking along those lines in my 20's and 30's. * *There is nothing I would rather buy than my own freedom from the workplace. *Having choices of what to do with my time without being concerned about a paycheck is the optimal for me. *The end of a working career is the beginning of something else, something that can be tailored for intrinsic rewards.

I've been working on computers systems for almost 25 years. *I don't regret going into the field, but I'm at the point where I've been there and done that. *I would gladly walk away from the tether of the routine, the cubical, the coworkers, the meetings, the stress, the overtime and the bosses.

I want to be FIREd when I am still young enough to hike, travel and have the mental capacity to enjoy learning. *

Three weeks of vacation time just isn't enough. *If I reach FI before age 56, when I am eligible for ER, I will reduce my work schedule to part time.

In the meantime, I have a fully charted retirement savings plan that is doable without feeling deprived of spending. *I get satisfaction from being on a budget and being in control of my spending as well as seeing my net worth increase. *It is actually more enjoyable to me than the way I lived in my 20's and 30's which was without a budget or savings plans or long range financial goals.

Next year, when our mortgage is paid off, our gross retirement savings rate will be at 43%. *That still leaves us with plenty of money to enjoy life.

-helen

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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 04:32 PM   #118
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Re: Go with TIPs or am I crazy?

We save 55% of our gross income. I get the greatest pleasure out of not spending money - it's almost become an addiction. My husband is now part time at 59, and I will retire in 2 years at 57 when we pay off the mortgage. We have so many things we want to do. Simple things, but they beat working every day.
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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 05:02 PM   #119
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Re: Go with TIPs or am I crazy?

Donner, I love the smell of duration in the morning . . . it smells like victory.

I was rummaging around in My Yahoo this morning and found this old asset allocation model I had put under the heading "Martha if I die do this." Kinda control from the grave--if possible. It's from a goldbug board, about two years old. The modeler said it could protect from stagflation and hyperinflation:

Clipper Fund 30%
Hussman Growth 20%
Hussman Income 20%
PRPFX 10%
PRNEX 10%
BearX fund 10%

Rebalance once/year. I substituted I Bonds/TIPS for the BearX fund in my orders to Martha.
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Re: Go with TIPs or am I crazy?
Old 06-04-2005, 06:07 PM   #120
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Re: Go with TIPs or am I crazy?

She takes orders? Hmm...
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