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Old 06-30-2009, 08:18 AM   #21
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but the markets have not cooperated as well as I would have hoped (understatement of the year
I continue to be baffled by the widespread practise of being exposed to the markets when one is close to retirement. A quick glance at the 100 year chart shows deep and long bear markets.

Assuming a paid off mortgage, I thought the fundamental rule was to edge into fixed income throughout middle age, and lock in close to 100% fixed income or annuities when you retire.

If 4-5% guaranteed return does not get you there (I don't mean you personally), then one is not saving enough. Reliable returns above that range are just not realistic.

Drives the investment "advisors" crazy though, given that the fixed income products are transparent and competitive, with very low kickbacks.
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Old 06-30-2009, 05:09 PM   #22
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I hear you, and I have been shifting. For the last three years though, much of my compensation has been based on megacorp's share price. That is the biggest "market" factor for me. The mortgage is paid off, the cash throw-off is almost set for the first few years, a couple years of cash for basic needs have been set aside, but with about 55-60% currently in equities and 7-8% in real estate I am holding for eventual sale, uncertainty as to the direction of the equity markets, uncertainty in the ecoonomy, and two kids in college, the prudent thing was to accept the several extra years behind the grindstone. I'm still in my 40s (almost late 40s), and even with the 2-3 extra years, I will still qualify as an "early" retiree.

Thanks for the comments though.

R
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Old 06-30-2009, 07:23 PM   #23
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of course there is hyper inflation to now worry about
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Old 06-30-2009, 08:11 PM   #24
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Assuming a paid off mortgage, I thought the fundamental rule was to edge into fixed income throughout middle age, and lock in close to 100% fixed income or annuities when you retire.
I think all three assumptions are conventional wisdom, but not necessary-- except for those who are unwilling to cope with a "black swan" event. And even then there are asset allocations that will survive a prolonged bear market without requiring highly annuitized/fixed-income solutions.

As you've pointed out, the other side of the coin is inflation, and my parents-in-law are "Exhibit A". ER'd in 1994, they've maintained a Treasury/CD portfolio since roughly 2002. They're seeing the effects of inflation but, being children of the Depression, they refuse to spend their principal. This steadfast resoluteness does not, however, keep them from venting their economic frustrations in our direction.

I think it's better to annuitize a bare-bones subsistence income and diversify the rest to deal with inflation. As far as I can tell, stocks are the only long-term solution.
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Old 07-01-2009, 05:14 AM   #25
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Rambler - Your team is lucky to have you. It's ironic they have benefited from the market meltdown since it delayed your departure! I definitely understand your description of being a human shield for crap falling from above. I also performed the same function with respect to our needy, arrogant major customer. It's satisfying to know you are making a difference (my first-born tendency to save the world. Are you a first born?) in these folks' lives but my reserves are running low and I need a recharge.
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Old 07-01-2009, 05:25 AM   #26
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Rambler - Your team is lucky to have you. It's ironic they have benefited from the market meltdown since it delayed your departure! I definitely understand your description of being a human shield for crap falling from above. I also performed the same function with respect to our needy, arrogant major customer. It's satisfying to know you are making a difference (my first-born tendency to save the world. Are you a first born?) in these folks' lives but my reserves are running low and I need a recharge.
Yes, another first-born here. My sis was in town the other day, and she had to gently reprimand me for trying to "take care" of her and her family while they were here. But I sure do hear you about the reserves running low (as it pertains to megacorp).

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Old 07-01-2009, 06:49 AM   #27
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I left Megacorp after 30 years about 9 months ago, still have feelings about some of the people there but no guilt, did my time, survived and got out. I volunteered to take a layoff package and there is a general feeling from those that stayed that it probably saved a job or two, not sure of that but hope I did. Heard from a former coworker yesterday that a few more people were laid off last week, hearing that just reminds me how happy I was to leave.

Sounds like you've done what you could to prepare and given full effort while you've been there so from my perspective, just give them your best, wish them luck, and then get on with ER!

Only a week away, how exciting!
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Old 07-01-2009, 09:58 AM   #28
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davemartin88 - I'm not sure I can claim RE at this point. All I know is I am looking forward to being in an extended job search.
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Old 07-05-2009, 06:33 AM   #29
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davemartin88 - I'm not sure I can claim RE at this point. All I know is I am looking forward to being in an extended job search.
Ahh, just let the ER sneak up on you, I like that plan!
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Old 07-05-2009, 08:05 AM   #30
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My mid sized 145 year old private company was sold to an investiment group about 1 1/2 years ago, last Oct they gave anyone over 60 a good package. I was there 31 years, and trained my replacement well. That being said, between the economy and their Global Matrix I believe they are doing a good job at destroying the company.
Hopefully they will succeed without too many more job losses and plant closings,
time will tell.
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Old 07-09-2009, 12:24 AM   #31
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Last day at my current employer was today....well, I guess now yesterday. Had a very nice lunch with the other managers and the CEO (oldest sister/family member). I spent 6 hours personally saying goodbye to everyone in the plant and then finished cleaning up my electronic files and cleaned out my desk. Got a couple nice emails. Here's one:

Thank you for all your help, patience and kindness. You being here has made life a lot better for all of us. Have a great life!


Thanks like that makes it all worthwhile. Headed out the door at 6 pm and found my car had been "decorated." Went back tonight to talk to 3rd shift and dropped off my badge on the way out. It's going to take a little time to realize it's really over. Let's see how I adust to just being me and not the Plant Manager!

We fly to St. Pete in the morning to visit with friends for a week. Not vacation. Just going. Weird.
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Old 07-09-2009, 05:07 AM   #32
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just throwing out an idea. When you are in Florida, take a day trip down to Immokalee. This is an area where I am thinking of doing volunteer work when I am down there.

By the way, check out Paseo in S. fort myers along the way, my neighbourhood. Exit 131 West, turn right at second lights (Palimino) then left on Penzance.

Paseo Ft. Myers
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