Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 02-20-2015, 05:02 PM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
During grad school at Tennessee in the early 70's, TA's were allowed to participate in "faculty lunch." This was a pretty nice buffet for $1 offered every weekday. I'd eat until I could eat no more and leave with a sandwich wrapped in a napkin to have for supper. It was a great deal since we'd focus on protein and veggies. Whatever we had stashed in our rooms was usually carb based......
__________________

__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet 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 02-20-2015, 05:50 PM   #42
Recycles dryer sheets
 
Join Date: Oct 2010
Posts: 229
Quote:
Originally Posted by youbet View Post
It was a great deal since we'd focus on protein and veggies. Whatever we had stashed in our rooms was usually carb based......
Aren't veggies generally carb based?
__________________

__________________
jimbee is offline   Reply With Quote
Old 02-21-2015, 08:18 AM   #43
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
We usually had a stash as well...




Sent from my iCouch using Early Retirement Forum
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 02-21-2015, 09:34 AM   #44
Thinks s/he gets paid by the post
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 3,847
I have thought about "the savings question" a bit, since my eldest just entered the work force. She asked for my opinion, so I gave her the basics (fund the Roth, blah, blah).

But I did couch the advice by saying "the advice is only good if everything 'financial' stays about the same, but that is not guaranteed". Not that I think it's likely, but there's always the chance that somebody presses the reset button. Then the guy/gal that lived like a college student is in worse shape than the spendthrift (has a cheaper sofa to exchange for 22 bullets, LOL!). And of course there's the financial penalties for having assets and income (student aid comes to mind) and perks for being poor (food stamps, etc). Not that I BELIEVE that's the way to go! But I wanted to provide a complete picture of the situation....I didn't want her to come to me after the reset button was pressed and blame me for living like a college student "for nothing".
__________________
sengsational is offline   Reply With Quote
Old 02-21-2015, 11:07 AM   #45
Full time employment: Posting here.
 
Join Date: Mar 2012
Location: seattle
Posts: 643
Quote:
Originally Posted by daylatedollarshort View Post
In the articles I've read he doesn't tell people to buy or not buy houses - he just says that historically they usually keep pace with inflation so they may not be the great investment many think they are.

http://finance.yahoo.com/news/we-re-...174038372.html

"There is an argument for helping low-income people get a house,” says Shiller. “I think it makes them feel better about their attachment to this country and themselves.” But he doesn’t believe there’s any reason to advise people towards owning a house instead of starting a business or paying for an education.

Owning a home appeals to certain people, according to Shiller, people who are upwardly mobile with young children. But, he warns, owning a home is an incredible nuisance that can trap people and end up costing a lot in upkeep. “I’m a homeowner but there’s a lot of stuff that goes wrong, we had our heat go out the other day,” he jokes."
Still, he bought a second home with his winnings. Maybe he really likes the beach, and if so it was likely a good decision. I would expect someone who insists that houses make low to middling investments would have looked for a different job for that money.
__________________
bld999 is offline   Reply With Quote
Old 02-21-2015, 11:23 AM   #46
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,384
He certainly hedged his bets with his opinion on home ownership. No one could be offended with his statement as he certainly covered all the angles.


Sent from my iPad using Tapatalk
__________________
Mulligan is offline   Reply With Quote
Old 02-21-2015, 11:34 AM   #47
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,386
Shiller is a Nobel Prize winning economist who is a principal in many successful high margin businesses, plus having a chair in the department of economics at Yale.

Does he really need to maximize cash returns on everything he owns?

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 02-21-2015, 12:29 PM   #48
Thinks s/he gets paid by the post
 
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 2,145
Quote:
Originally Posted by Bestwifeever View Post
Please don't make me eat those generic frozen pot pies every day for dinner again!
No student living for me... I've moved up to Smart Ones frozen dinners.
__________________
Hermit is offline   Reply With Quote
Old 02-21-2015, 12:55 PM   #49
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,327
Quote:
Originally Posted by haha View Post
Shiller is a Nobel Prize winning economist who is a principal in many successful high margin businesses, plus having a chair in the department of economics at Yale.

Does he really need to maximize cash returns on everything he owns?

Ha
+1. I think the advice he gives his students and the general public is not the same advice he would give to his older self and likely well off age 50+ fellow Nobel laureates and business partners. Part of what we suggest for our kids to do now is the wisdom we learned from our own mistakes. We tell them not to get tied down to a big house right away. We did that ourselves because the conventional wisdom, or so we thought at the time, was that houses can only go up and houses are great investments, right?

Shiller is just pointing out houses tend to keep up with inflation, they tie down your money and your free time and there may be better options.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Old 02-21-2015, 01:20 PM   #50
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,438
Shiller does not live like college students, because he does not have to. I am younger, and have less than he does (most likely), and I do not have to live like a student either. And I even have a 2nd home, because I can afford it.

I was fortunate to be working and saving during the boom years of 1980-2000. I hope my adult-age children will have the same opportunity I had, but there's nothing certain in life. They aren't living as college students either (my son bought an Audi S4), but I encourage them to save as much as they can.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 02-21-2015, 02:23 PM   #51
Recycles dryer sheets
 
Join Date: Feb 2013
Location: San Jose
Posts: 173
Three decades and counting. Enjoyed some nice gains in the late 90s but I remembered that line from the movie "Wall Street" which goes "enjoy it while it lasts kid, because it never does". It sure didn't last for me. Still made it to FI reasonably early, and what got me here was my persistent low spending rate. It began around 25% of AGI when I started working full time and has since dropped to less than 10% for everything except income taxes.

I don't think living this way for years on end would suit many college grads, especially those who have to dig out from under onerous student loan debt first. Today's students don't seem unhappy now because they will soon taste the freedom that comes from earning a full time wage. Those who see it as freedom to live well now won't look at saving 50% the same way as those who prefer freedom to control their time later. It gets harder to resist the splurge during the honeymoon first years on the job after the first few raises when they start thinking they'll be happy to work there forever. That and the fear of getting too old to enjoy it later.

I think Prof Shiller has a good idea but very few will choose to do it. Still I wouldn't offer this advice to anyone except close family (heirs) because it could be construed as a pessimistic view of a young graduate's future prospects.
__________________
dunkelblau is offline   Reply With Quote
Old 02-21-2015, 02:58 PM   #52
Recycles dryer sheets
Focus's Avatar
 
Join Date: Oct 2009
Posts: 473
Quote:
Originally Posted by dunkelblau View Post
I don't think living this way for years on end would suit many college grads, especially those who have to dig out from under onerous student loan debt first. Today's students don't seem unhappy now because they will soon taste the freedom that comes from earning a full time wage. Those who see it as freedom to live well now won't look at saving 50% the same way as those who prefer freedom to control their time later. It gets harder to resist the splurge during the honeymoon first years on the job after the first few raises when they start thinking they'll be happy to work there forever.
I think this is an interesting point. There's a very different feeling to living like a student, with limited financial means, in your youth and doing so later when control over your time is perceived as more valuable and well worth the price of a simple, frugal lifestyle. Perspective is everything.
__________________
-
"Wealth consists not in having great possessions, but in having few wants."
--Epictetus
Focus is offline   Reply With Quote
Old 02-21-2015, 06:57 PM   #53
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,327
I guess it also depends on what kind of college student lifestyle you are living. Our oldest lives in a nice apartment where at least one of his professors and other professionals live, has a nice car, has a kitchen and knows how to cook, eats healthy food, etc. so that is my frame of reference for suggesting he consider not spending too much more right away and instead invest the difference. If he were living in a house with 6 people, eating Ramen and getting around on a skateboard I could see where he would want to upgrade that kind of lifestyle significantly as soon as possible after graduation.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Old 02-21-2015, 08:28 PM   #54
Full time employment: Posting here.
 
Join Date: Mar 2012
Location: seattle
Posts: 643
Quote:
Originally Posted by haha View Post
Shiller is a Nobel Prize winning economist who is a principal in many successful high margin businesses, plus having a chair in the department of economics at Yale.

Does he really need to maximize cash returns on everything he owns?

Ha
Fair point, I am sure the answer is no. As I read back , I see he was talking to students to begin with.
__________________

__________________
bld999 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
Trying to save some on student loan Klubbie FIRE and Money 4 06-15-2014 03:28 PM
Save Some Money and Help Your Son or Daughter Live Longer With One Simple Act haha FIRE and Money 7 03-10-2012 12:24 PM
Some Interesting Historical Data and Most Recent Shiller PE10 haha FIRE and Money 15 04-08-2010 10:51 AM
What Do Tobin's Q and Shiller's CAPE Say About Current S&P Valuations? haha FIRE and Money 50 01-17-2010 04:13 PM
Shiller Data bongo2 FIRE and Money 5 06-23-2004 12:50 PM

 

 
All times are GMT -6. The time now is 04:17 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.