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Old 06-26-2008, 06:13 PM   #41
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Hard to see anytime soon.
Probably not this year.

But you DO have a cash buffer of at least a year or two of expenses, right?

You DO have the ability to avoid liquidating equities for at least 3-4 years, yes?

You ARE cutting costs and expenses, ya?

Then you've got nothing to worry about.
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Old 06-26-2008, 06:19 PM   #42
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Thanks, had the butter knife to my wrists twice today but couldn't go thru with it..
Attachment 3856


Glad I could help.

Just kidding!
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Old 06-26-2008, 06:26 PM   #43
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This is something I've always wondered . How do you cash out if most of your investments are in taxable accounts ? How do you handle the tremendous capital gains ? And where do you put the money ? Sorry if this question is elementary .
All my stocks/mutual funds were either in 401K or Roth accounts...
I switched all to cash before I retired last June. No tax hit at all.
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Old 06-26-2008, 06:26 PM   #44
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If I had a Cola pension I'd be doing the happy dance. At this point I'm a wall flower.
Hey, if you want a COLA pension too, then you can go buy a COLA-adjusted annuity from Vanguard for a lot less than I paid for mine. The payer might have a slightly lower credit rating but I'm not sure that'll make a difference over our lifespans. You won't have to learn how to breathe underwater either.

All I'm saying is that the people who were gleeful last year (or kvetching that they weren't up as much) should not be complaining this year. If anything they should be figuring out at what prices they'll be buyers. It's the two sides of volatility.

It sure is different this time-- because so far the NASDAQ hasn't lost over 50% of its value and the S&P500 hasn't had a one-day drop of 22%, let alone the drops it experienced in 2001-2. So for those "it's different this time", this is barely a blip on the volatility radar. Anyone this year's volatility to be scary should perhaps revisit their desired asset-allocation plans.

But our COLA pension is the reason that our ER portfolio is 92% equities. We're down 21% from last year's all-time high but only down 7% YTD. We rebalanced last Feb (when Berkshire Hathaway was 17% higher than today's close) and we have two year's spending money in a money market & CDs. Thanks to a few gentle nudges from Laurence, our kid's college money is also in two-year CDs for her 2010 graduation.

No cutbacks planned so far. But when I update the "should I pay off the mortgage or invest" thread in a few months, I suspect it's going to be a demonstration of short-term pain for the prospect of long-term gain.
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Old 06-26-2008, 06:28 PM   #45
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Not speaking for Helena, but the way it usually works is your cash gets eaten alive by inflation, the market rebounds and you miss getting back all of the money you lost, and then you get clobbered with a huge capital gains tax next april.
You're right... you don't speak for me.

I cashed out last year and had absolutely no tax hit.

We'll see who's ahead of the game come next April.


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Old 06-26-2008, 06:35 PM   #46
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Probably not this year.

But you DO have a cash buffer of at least a year or two of expenses, right?

You DO have the ability to avoid liquidating equities for at least 3-4 years, yes?

You ARE cutting costs and expenses, ya?

Then you've got nothing to worry about.
Yes to the first 2, but I'm already a cheap old bastard so hard to cut anything.
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Old 06-26-2008, 06:38 PM   #47
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I have a feeling that we are pretty close to the bottom so this IS the right time to panic and sell it all. As for me...I will be buying tomorrow or early next week. Our portfolio is down a bunch from the highs of october but we are still WAY ahead this decade. Saving and investing is a long term project. COLA'd pension has me not worrying too much about recent market levels and little things like living expenses.
Life is good!
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Old 06-26-2008, 06:49 PM   #48
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The main takeaway I'm getting from this thread is that it's easy to relax if you're one of the fortunate few with a COLA'd pension.
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Old 06-26-2008, 06:52 PM   #49
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The main takeaway I'm getting from this thread is that it's easy to relax if you're one of the fortunate few with a COLA'd pension.
Go buy yourself a COLA'd pension.
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Old 06-26-2008, 06:52 PM   #50
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Which do you want to be?



or the Duke Brothers?

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Old 06-26-2008, 07:00 PM   #51
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The main takeaway I'm getting from this thread is that it's easy to relax if you're one of the fortunate few with a COLA'd pension.

I don't have a COLA'd pension... I took a lump sum and rolled it over
to a self-directed IRA.

I do have a glorified hobby that brings in extra $$.

My health insurance is paid by my former employer [Blue Cross]

I am completely out of debt... I mean totally... all my real estate
and vehicles are paid off.
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Old 06-26-2008, 07:12 PM   #52
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I don't have a COLA'd pension... I took a lump sum and rolled it over
to a self-directed IRA.

I do have a glorified hobby that brings in extra $$.

My health insurance is paid by my former employer [Blue Cross]

I am completely out of debt... I mean totally... all my real estate
and vehicles are paid off.
Before I ask you to marry me, you are female? Correct?
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Old 06-26-2008, 07:16 PM   #53
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Before I ask you to marry me, you are female? Correct?

I retired early... but still too old for you.

Besides... I like being single.
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Old 06-26-2008, 07:18 PM   #54
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Before I ask you to marry me, you are female? Correct?
Should that make a difference?
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Old 06-26-2008, 07:30 PM   #55
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[quote=Nords;675299]Hey, if you want a COLA pension too, then you can go buy a COLA-adjusted annuity from Vanguard for a lot less than I paid for mine. The payer might have a slightly lower credit rating but I'm not sure that'll make a difference over our lifespans. You won't have to learn how to breathe underwater either.

quote]

You own a COLA'd insurance annuity? I would not have guessed that. I assume you think that was a mistake?
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Old 06-26-2008, 07:34 PM   #56
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[quote=RockOn;675340]
Quote:
Originally Posted by Nords View Post
Hey, if you want a COLA pension too, then you can go buy a COLA-adjusted annuity from Vanguard for a lot less than I paid for mine. The payer might have a slightly lower credit rating but I'm not sure that'll make a difference over our lifespans. You won't have to learn how to breathe underwater either.

quote]

You own a COLA'd insurance annuity? I would not have guessed that. I assume you think that was a mistake?
Yeah, he owns one from the federal gov., it took him 20 years to buy it.
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Old 06-26-2008, 07:36 PM   #57
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Should that make a difference?
For some, no. And to be politically correct, that's ok too. But for me, yes. But I've been rejected anyway. So I'll lust over my avatar.
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Old 06-26-2008, 07:37 PM   #58
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For some, no. And to be politically correct, that's ok too. But for me, yes. But I've been rejected anyway. So I'll lust over my avatar.
Dawg the boy toy! rejected
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Old 06-26-2008, 07:41 PM   #59
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Working extra shifts. Picked up a locums job. Spending all that extra cash on VEU and VTI. When looking in the rear view mirror 15-20 years from now 2008 will have been a good year to purchase equities, certainly better then 2007...

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Old 06-26-2008, 07:44 PM   #60
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Just ignoring the market right now (at least trying). Still investing according to schedule. My wife's 401K contribution was invested today. We added more money to our VG portfolio Yesterday. Plus this week it's quarterly dividend paying week so we have several thousand dollars being reinvested at pretty low prices.
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