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Old 07-01-2012, 12:18 PM   #21
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Better than average market returns by far, but after deducting management fees and transaction costs it was a tremendous money losing investment!
While you took the approach of investing in high-growth stocks plus possibly high portfolio turnover, I did the value investing approach. Bought and never sold. Seems to work well so far.

In the late 70s, while I was still in graduate school and working part-time at an internship, my wife was working full-time. We were not married then, but living within a block of each other. For a time, my car broke down and while I was trying to fix it (you wouldn't think a poor student would be able to afford a mechanic, would you?), I even had to borrow my future wife's car to go to work. She was carpooling with her coworker then, and did not need her car.

Wasn't that leveraged investing or what?
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Old 07-01-2012, 12:20 PM   #22
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Not like when I was 24 and living in a one-bedroom apartment with no other furniture than a bed, a sofa, and dining room table with a cheap 4-place setting of Corelware.
Hey, don't "dis" the Corelware! They are still our daily dishes (though we've bought several sets so we only need to run the dishwasher every few days). They look okay, stack well to save space, are almost unbreakable--perfect!
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Old 07-01-2012, 01:05 PM   #23
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Originally Posted by NW-Bound
While you took the approach of investing in high-growth stocks plus possibly high portfolio turnover, I did the value investing approach. Bought and never sold. Seems to work well so far.

In the late 70s, while I was still in graduate school and working part-time at an internship, my wife was working full-time. We were not married then, but living within a block of each other. For a time, my car broke down and while I was trying to fix it (you wouldn't think a poor student would be able to afford a mechanic, would you?), I even had to borrow my future wife's car to go to work. She was carpooling with her coworker then, and did not need her car.

Wasn't that leveraged investing or what?
Buy and hold "investing" for the long term is indeed the best investment philosophy!
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Old 07-01-2012, 01:07 PM   #24
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Hey, don't "dis" the Corelware! They are still our daily dishes (though we've bought several sets so we only need to run the dishwasher every few days). They look okay, stack well to save space, are almost unbreakable--perfect!
I use Corelleware too. I have what I think is one of the least ugly patterns, the iris pattern below, though all of them are ugly IMO. Still, they are very light and I like that a lot. Plus, I like the fact that they seldom break. The fact that they are cheap isn't lost on me, either.

I was looking at dishes on Amazon earlier this week, but didn't see any prettier ones that looked as light in weight and unbreakable as Corelleware.
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Old 07-01-2012, 01:52 PM   #25
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Buy and hold "investing" for the long term is indeed the best investment philosophy!
Well, it does not always work.

You do not want to hold "something" like Enron until bankruptcy. Guess I am lucky.
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Old 07-01-2012, 02:09 PM   #26
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Better than average market returns by far, but after deducting management fees and transaction costs it was a tremendous money losing investment!
I think returns improve with additional research.

I don't think it's worth hiring professionals, but you could consider selling options...

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Hey, don't "dis" the Corelware! They are still our daily dishes (though we've bought several sets so we only need to run the dishwasher every few days). They look okay, stack well to save space, are almost unbreakable--perfect!
Yeah, no kidding!

If you stick to the more popular Corelle patterns and patrol Goodwill monthly, then you'll be able to keep picking up spares for less than a buck each.
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Old 07-01-2012, 08:50 PM   #27
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Hey, don't "dis" the Corelware! They are still our daily dishes (though we've bought several sets so we only need to run the dishwasher every few days). They look okay, stack well to save space, are almost unbreakable--perfect!
+1, except they are our only dishes. I gave the other ones away. I really like Corelware.
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Old 07-01-2012, 09:00 PM   #28
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I think this is one of the most important posts I could read here. Assumed inflation is such a big driver in so much we are taught to consider when planning, saving and investing. I've experienced what so many others have posted, little to no rise in expenses and it's great to hear so many others have been able to manage their lives to achieve similiar results. I remember buying my desktop about 12 years ago for $1000 and recently bought a laptop that is so much more powerful for $300. Years ago if a car made it to 100k it was a big deal, my last Honda made it close to 300k. I know a lot of the results have to do with the mindset on this forum but that's just fine with me as I'm drinking the Kool-Aid.
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Old 07-01-2012, 09:19 PM   #29
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I know a lot of the results have to do with the mindset on this forum but that's just fine with me as I'm drinking the Kool-Aid.
You are buying generic brand Kool-Aid at wholesale, right?
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Old 07-01-2012, 09:22 PM   #30
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I think this is one of the most important posts I could read here. Assumed inflation is such a big driver in so much we are taught to consider when planning, saving and investing. I've experienced what so many others have posted, little to no rise in expenses and it's great to hear so many others have been able to manage their lives to achieve similiar results. I remember buying my desktop about 12 years ago for $1000 and recently bought a laptop that is so much more powerful for $300. Years ago if a car made it to 100k it was a big deal, my last Honda made it close to 300k. I know a lot of the results have to do with the mindset on this forum but that's just fine with me as I'm drinking the Kool-Aid.
It's true that the reliability of automobiles has greatly improved, so the life cycle cost has gone down. Electronics have become significantly cheaper, assuming you are replacing like with like. Your desktop is now so much cheaper because it is no longer leading edge product, but a commodity. If you want the latest iPad, eReader, etc, etc. you will be spending money that you couldn't spend 12 years ago because they didn't exist. I guess as we age we are less to be early adopters of new technology. When it comes to home furnishings, there is a peak in the early years of home ownership and the wear and tear of family life, and when the kids leave, suddenly nobody is jumping on the sofa anymore, so it will do for another few years! I definitely see myself becoming less acquisitive as time goes by.
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Old 07-01-2012, 10:14 PM   #31
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Originally Posted by btbw2380
I think this is one of the most important posts I could read here. Assumed inflation is such a big driver in so much we are taught to consider when planning, saving and investing. I've experienced what so many others have posted, little to no rise in expenses and it's great to hear so many others have been able to manage their lives to achieve similiar results. I remember buying my desktop about 12 years ago for $1000 and recently bought a laptop that is so much more powerful for $300. Years ago if a car made it to 100k it was a big deal, my last Honda made it close to 300k. I know a lot of the results have to do with the mindset on this forum but that's just fine with me as I'm drinking the Kool-Aid.
I think we are in this thread probably intermingling inflation with spending restraints but the bottom line is what you spend not the inflation rate. The only variables long term that I truly believe could concern me inflation wise are healthcare, heating, cooling, and food. The rest of them, I feel like I can control. Since I have natural gas, that appears to be one less inflation worry. Food occupies about 7% percent of my budget, so even if that doubles, it still wont be a lot. Of course I could just eat more of that government subsidized starchy food products that will always be cheap that was discussed in an earlier thread
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Old 07-02-2012, 06:03 AM   #32
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I think we are in this thread probably intermingling inflation with spending restraints but the bottom line is what you spend not the inflation rate. The only variables long term that I truly believe could concern me inflation wise are healthcare, heating, cooling, and food. The rest of them, I feel like I can control. Since I have natural gas, that appears to be one less inflation worry. Food occupies about 7% percent of my budget, so even if that doubles, it still wont be a lot. Of course I could just eat more of that government subsidized starchy food products that will always be cheap that was discussed in an earlier thread
I agree about the intermingling but the important takeaway for me is that many others are able to modify their spending, a lot of it using substitution, without negatively impacting their quality of life. It give me more confidence that whatever I encounter, I'll be able to continue to "manage" inflation.
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Old 07-02-2012, 06:14 AM   #33
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Hey, don't "dis" the Corelware!
Heavens no!

We still have and use some Corelware. The stuff is practically indestructible and apparently will last a lifetime. I used the word "cheap" in the sense of meaning low cost, not low quality.
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Old 07-02-2012, 07:55 AM   #34
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This thread is encouraging. I agree there has been disinflation in some things such as autos and electronics. Food costs inflate unless you substitute. Energy costs are certainly going up but cars get better mileage. Property taxes are a big expense for us and they are inflating at over 5% per year. Travel costs are controllable but you have to work hard sometimes to keep them from increasing. So it is very personal. It is left to be seen whether we spend less as we age - haven't noticed this yet but I am only 62 and the DW 55. I am also worried that we might be in for quite high inflation at some point given the fiscal issues the US faces. Canada may fare better. Bottom line like someone upthread said, I am setting a place but if he doesn't show that's OK.
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Old 07-02-2012, 09:28 AM   #35
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I originally posted/agreed that inflation was not a big factor (lots of stuff is now cheaper than 20 years ago).

BUT....what about things you are paying for now that you weren't years ago: cable TV, internet access, cell phones, (here in the NE: air conditioning) etc etc.

Ok, ok, I know these are 'controllable' costs and do add to the quality of life, but for most of us, there is about a $150-$200 per month more that is paid out vs 20-30 years ago.

Sort of an inflation, no?
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Old 07-02-2012, 09:37 AM   #36
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I originally posted/agreed that inflation was not a big factor (lots of stuff is now cheaper than 20 years ago).

BUT....what about things you are paying for now that you weren't years ago: cable TV, internet access, cell phones, (here in the NE: air conditioning) etc etc.

Ok, ok, I know these are 'controllable' costs and do add to the quality of life, but for most of us, there is about a $150-$200 per month more that is paid out vs 20-30 years ago.

Sort of an inflation, no?
These are not inflation, they are increases in the standard of living. I recall an estimate of around 1% per year in standard of living increase, which would be significant for an ER.
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Old 07-02-2012, 09:39 AM   #37
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Agreed that it's not inflation per se, but it is an increase in the COL. An indirect, societal 'inflation' of sorts.

Sometimes I overthink things.............
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Old 07-02-2012, 09:44 AM   #38
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Agreed that it's not inflation per se, but it is an increase in the COL. An indirect, societal 'inflation' of sorts.

Sometimes I overthink things.............
This is one I'll debate. Not inflation of any type. This is new consumption that increases your standard of living while inflation is a higher price for basically the same standard as before.

It does highlight an important part of one's financial planning for ER, because over long periods of time the cost to stay current with standard of living improvements can be substantial.
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Old 07-02-2012, 09:50 AM   #39
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No inflation in grocery costs? I beg to differ, pull out some of those receipts from 2 years ago, and you tell me............
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Old 07-02-2012, 09:57 AM   #40
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This is one I'll debate. Not inflation of any type. This is new consumption that increases your standard of living while inflation is a higher price for basically the same standard as before.

It does highlight an important part of one's financial planning for ER, because over long periods of time the cost to stay current with standard of living improvements can be substantial.
Ok. Wasn't looking for a debate --that must be two doors down ---, just offering my (miguided) thoughts.
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