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01-01-2009, 01:34 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 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,674
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Another LBYM fan
I ran across this piece on yahoo today. It seems that there are more and more LBYM fans speaking up these days. Sure hope that there are many, many more folks taking this to heart.
Quote:
Henry "Bud" K. Hebeler says that if we expect to reach our financial retirement goals, we're going to have to put the kibosh on extraneous spending and make savings a priority in our lives.
It seems simple enough, but for many Americans, giving up flat-screen TVs, luxury vehicles and the penchant for dining out is about as palatable as swallowing a spoonful of castor oil.
For those of us who have moved retirement planning to the back burner, Hebeler's back-to-basics advice is propped up by stark figures on American saving habits.
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http://finance.yahoo.com/focus-retirement/article/106378/Retirement-Myths-and-Realities?mod=retirement-preparation
__________________
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
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01-01-2009, 01:43 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: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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There might be an opportunity for good capitalists to market bumper stickers and T-shirts saying "I was frugal before frugal was cool."
Of course, the trick is to get the frugal to spend their money to buy them...
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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01-01-2009, 01:52 PM
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#3
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,126
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from the article:
Quote:
Those who retired in 1965 would have used up the entire $950,000 in 25 years if they only spent $15,000 a year, not $50,000. On the other hand, they could have spent $108,000 if they had retired in 1948. This difference is staggering. All of this with only 40 percent stock allocation. Also those who retired in 1965 had higher taxes than those who retired in 1948, thus delivering another crippling blow.
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That is scary to think that in 1965 a mix of 40/50/10 only had a SWR of 1.5%, but you would not know this when you set out.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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01-01-2009, 02:23 PM
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#4
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Full time employment: Posting here.
Join Date: Oct 2007
Location: New York
Posts: 898
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Quote:
Originally Posted by ziggy29
There might be an opportunity for good capitalists to market bumper stickers and T-shirts saying "I was frugal before frugal was cool."
Of course, the trick is to get the frugal to spend their money to buy them...
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Not a problem, the one's who would buy them are the posers - a much bigger market!
__________________
Money's just something you need in case you don't die tomorrow.
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01-01-2009, 11:22 PM
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#5
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Quote:
Originally Posted by mickeyd
I ran across this piece on yahoo today. It seems that there are more and more LBYM fans speaking up these days. Sure hope that there are many, many more folks taking this to heart.
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Hebeler's been writing this for years-- I think I started reading his articles & book in the early 2000s. I guess he's one of the first to go for a variable withdrawal rate, and I'm pretty sure he's the only one with such a tight negative feedback loop.
Good advice from a guy who knows far too many widows trying to make it on Social Security survivor's benefits.
__________________
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Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
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01-02-2009, 11:44 PM
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#6
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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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Quote:
Originally Posted by Alan
from the article:
That is scary to think that in 1965 a mix of 40/50/10 only had a SWR of 1.5%, but you would not know this when you set out.
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SWR of 1.5% ! Mamma Mia ! We are all doomed !!!
I better dig up recipes using Spam as the main ingredient.
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01-02-2009, 11:51 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 1,183
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Spam? You must be rich! I think beans & oats and seeds planted in pots or replacing backyard sod! Now, if I can only find my hoe.
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01-03-2009, 12:19 AM
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#8
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Full time employment: Posting here.
Join Date: Jul 2008
Posts: 622
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Quote:
Originally Posted by Maurice
Not a problem, the one's who would buy them are the posers - a much bigger market!
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Or you can use the old reverse psychology on them. Make shirts that say "Don't waste your money on shirts like this!"
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01-03-2009, 10:22 AM
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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: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,674
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Quote:
if I can only find my hoe.
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Where did you leave her?
__________________
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
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01-04-2009, 01:12 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: Jul 2008
Posts: 35,712
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Quote:
Originally Posted by crazy connie
Spam? You must be rich! I think beans & oats and seeds planted in pots or replacing backyard sod! Now, if I can only find my hoe.
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I've eaten Spam, and though not crazy about it, actually do not see what the big fuss is. Hawaiians eat it by the shipload. My concern is that it seems to have a lot of fat, which likely shortens my life, which in turn allows a higher SWR than 1.5%. Hmm... Where's the equilibrium point?
Still, no comments on this 1.5% SWR? Do forum members disregard this data point, or do we play ostrich? Comments please.
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01-05-2009, 09:27 AM
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#11
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Quote:
Originally Posted by NW-Bound
Still, no comments on this 1.5% SWR? Do forum members disregard this data point, or do we play ostrich? Comments please.
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If you haven't already, you could read Hebeler's articles at http://www.analyzenow.com/ or a library copy of his 2001 book "J. K. Lasser’s Your Winning Retirement Plan".
IIRC he was an aero engineer before becoming Boeing's CFO so his retirement planning tends to include a belt, suspenders, frequent mirror checks, and an occasional staple...
As far as 1.5% SWR goes, that's way too conservative when even the S&P dividend rate is higher.
__________________
*
Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
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01-06-2009, 09:21 AM
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#12
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Recycles dryer sheets
Join Date: Sep 2008
Posts: 274
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Was anybody thinking they could just put their funds in a set position when you retire, and never think about the money again? If you are smart enough to invest wisely when you are working, why wouldn't you do the same when you are retired? Changes in the tax code alone can prompt a shift in positions. Or times of glaring uncertainty - like now - require a modicum of new thinking about where you are keeping your money.
That 1965 number must be heavily influenced by the "Carter inflation" years. Seventeen percent inflation will eat you alive if you don't move to a safe harbor.
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