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A Bad Economy is A Terrible Thing to Waste
04-25-2012, 09:40 AM
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#1
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Recycles dryer sheets
Join Date: Feb 2011
Posts: 75
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A Bad Economy is A Terrible Thing to Waste
Curious if anyone else out there is finding themselves doing really well in this mess of an economy.
My company has been on fire the past few years and my income has been at an all time high. I was making anywhere from 100k - 125k and then more than doubled my income over the past few years due to bonuses and company stock performance.
Just did some quick calculations and I think I am going to make over $300k this year for the first time. I grew up VERY blue collar and my first job out of college paid about 20k in the early 1990s so I am kind of stunned by all this. It has allowed us to pour money into the college fund for the kids and really beef up retirement savings which is just awesome.
I apologize if this sounds like I am bragging but where else can you talk about this stuff?
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04-25-2012, 11:42 AM
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#2
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Moderator Emeritus
Join Date: May 2007
Posts: 12,901
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No need to apologize for your success. We too have experienced amazing growth in both income and net worth since 2008.
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04-25-2012, 12:17 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,695
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The economic crash of late 2008 was a huge benefit for the Early Retirement I took that November. This was because I was able to buy shares of a bond fund at rock-bottom prices using the proceeds of my company's stock (ESOP) sale at prices which had not yet fallen significantly. The bund fund's share value has recovered nicely and subsequenet cap gains distributions, while taxable, resulted in many more shares than I originally thought I would get.
I drive very little so the high gas prices have had little impact compared to the overall upside I have experienced from the overall bad economy. The recovered stock market has improved my stock fund holdings and dividends, too.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
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04-25-2012, 01:13 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,363
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+1 I sometimes feel guilty that we have prospered while so many have suffered but a lot was right place/right time and being well positioned to begin with.
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04-25-2012, 01:15 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Posts: 12,880
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The bad economy cut down on tourism and development in our area, which is a good thing for us. The best was that a local pulp mill went out of business permanently, meaning a big improvement in air quality.
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04-25-2012, 02:10 PM
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#6
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Recycles dryer sheets
Join Date: Feb 2011
Posts: 75
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Quote:
Originally Posted by pb4uski
+1 I sometimes feel guilty that we have prospered while so many have suffered but a lot was right place/right time and being well positioned to begin with.
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Yes. It makes for some weird conversations with neighbors and family. Many people freaked out and just trying to weather the storm while we are doing really well.
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04-25-2012, 05:49 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 2,525
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Quote:
Originally Posted by CorporateSoldier
Curious if anyone else out there is finding themselves doing really well in this mess of an economy.
My company has been on fire the past few years and my income has been at an all time high. I was making anywhere from 100k - 125k and then more than doubled my income over the past few years due to bonuses and company stock performance.
Just did some quick calculations and I think I am going to make over $300k this year for the first time. I grew up VERY blue collar and my first job out of college paid about 20k in the early 1990s so I am kind of stunned by all this. It has allowed us to pour money into the college fund for the kids and really beef up retirement savings which is just awesome.
I apologize if this sounds like I am bragging but where else can you talk about this stuff?
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Shhssss! Good news is not allowed... The proper tenor of the times is doom and gloom.
But may you continue to prosper and may many more join you
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04-25-2012, 05:52 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,259
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Luck is when preparation meets opportunity.
You succeeded because you prepared yourself. That is good. Spread some of the dollars around helping those less fortunate. Spread a few more around enjoying life - it's shorter than you think. And, of course, invest a bunch of the dollars for the future.
I also made a few dollars from the unfortunate economy. Having saved and invested for years, I had a nice pot of $'s sitting in a money market account. When the market nose dived, I took a chunk out and bought more shares in a Total Stock Market fund. Had I spent this money on foolish things I would not have had it.
Of course, if my time machine had not been broken, I would have bought even more of the fund. But, even the best prepared can't have everything.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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04-25-2012, 06:56 PM
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#9
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Thinks s/he gets paid by the post
Join Date: May 2011
Location: South Eastern USA
Posts: 1,068
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Quote:
Originally Posted by CorporateSoldier
Curious if anyone else out there is finding themselves doing really well in this mess of an economy.
My company has been on fire the past few years and my income has been at an all time high. I was making anywhere from 100k - 125k and then more than doubled my income over the past few years due to bonuses and company stock performance.
Just did some quick calculations and I think I am going to make over $300k this year for the first time. I grew up VERY blue collar and my first job out of college paid about 20k in the early 1990s so I am kind of stunned by all this. It has allowed us to pour money into the college fund for the kids and really beef up retirement savings which is just awesome.
I apologize if this sounds like I am bragging but where else can you talk about this stuff?
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WARNING: Whatever you don't say <Wheee!)
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04-25-2012, 07:04 PM
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#10
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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We did two major home-improvement projects in 2008 and 2011 that would have cost a lot more if not for the recession's impact on the construction industry.
I don't know how much they "should" have cost, and both were quality jobs, but both times there was grumbling from the contractor's bean-counters over the hours of labor required to finish the jobs.
This year we finally used up all the capital losses from all our 2008 tax-loss swap selling.
__________________
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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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04-25-2012, 07:30 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Jan 2007
Location: Thousand Oaks
Posts: 1,111
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Quote:
Originally Posted by TromboneAl
The bad economy cut down on tourism and development in our area, which is a good thing for us. The best was that a local pulp mill went out of business permanently, meaning a big improvement in air quality.
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I'm sure the mill workers were thrilled also.
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04-25-2012, 08:26 PM
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#12
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Recycles dryer sheets
Join Date: Mar 2010
Location: New England
Posts: 197
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I did get swept up in a massive lay off in 2009 (with a huge grin on my face).
I took the opportunity to start rehabbing cheap foreclosures. Fortunately, I had plenty socked away to pay cash for a few places. But yeah, I try to keep mum about profiting off of other people losing their homes.
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04-25-2012, 08:33 PM
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#13
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Recycles dryer sheets
Join Date: Dec 2011
Posts: 77
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Golly, so glad to hear you folks are thriving! If it's not too much to ask, what fields are you in? Some of us may be faced with a career/field change before long and want to pick a winner.
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04-25-2012, 08:43 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Posts: 5,350
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I'm on the far other end of the spectrum. I've been unemployed for the last 9 months. Dozens of interviews with no offers. It looks like I may get an offer finally. The job pays a whopping $10.20/hr and i'll be lucky to get it. If I don't get this job my portfolio will drop back down to 5 figures. On the bright side i'm 33 and have over $100K in my portfolio. A lot of people would love to have that...none are on this forum
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04-25-2012, 09:11 PM
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#15
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Full time employment: Posting here.
Join Date: Jan 2012
Posts: 518
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Quote:
Originally Posted by aaronc879
I'm on the far other end of the spectrum. I've been unemployed for the last 9 months. Dozens of interviews with no offers. It looks like I may get an offer finally. The job pays a whopping $10.20/hr and i'll be lucky to get it. If I don't get this job my portfolio will drop back down to 5 figures. On the bright side i'm 33 and have over $100K in my portfolio. A lot of people would love to have that...none are on this forum
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Good luck Aaronc879. I think it's awesome you've built a good safety net and I hope your job prospects perk up soon! The fact that you get so many interviews says you have a good resume. The fact that you haven't gotten many offers means that competition is super intense, or you need an interview skills brushup. It could certainly be the former. (I was a headhunter in a former life)
Like many other commenters, we've had some of our best earning years during the downturn. Of course a lot of that has been DH's luck/hard work in hanging onto his megacorp job while they laid others off, but even my small biz did well last year. Because of our past savings, we were able to buy a home at a discount and invest in the market during the 2008 crash, so we've gotten some good returns.
I have a few thoughts about our economy:
1. High paying jobs exist, but they are by no means certain. Appreciate it while you've got it and save like mad. We're always one layoff away from a 60% drop in income.
2. The US workforce is marvelously productive. This hasn't been the best thing for workers, as companies learned they can thrive with fewer employees.
3. If you have a job and savings when a recession hits it can mean great opportunities. We're not "rich" but I can see why the rich get richer.
4. I wonder how much of the current unemployment is structural. Some sectors are hiring, others may never recover to previous levels. I don't know that we will "get back" our old economy, but we might see a positive new one.
SIS
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04-25-2012, 09:28 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,688
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I guess I was lucky enough to be living in a place that was relatively unscathed, and working in an industry that was relatively unaffected ,by the financial crisis.
One thing I have gained from hanging out here (and a few other places) is an appreciation for the need to keep your skill set current and to network aggressively if you want to maximise your employability.
__________________
Budgeting is a skill practised by people who are bad at politics.
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04-25-2012, 11:16 PM
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#17
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Recycles dryer sheets
Join Date: Dec 2007
Posts: 482
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Things have never been better. Could hang it up now, but like a little padding to make sure.
__________________
Retire date Jan. 10, 2018
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04-26-2012, 04:38 AM
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#18
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,708
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Corporate soldier, there's nothing wrong with working hard and earning well. Just remember to save. Forum members and society will respect and congratulate your success but not easily forgive a missed opportunity to provide for your future needs.
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04-26-2012, 08:30 AM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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We have seen huge growth in net worth since the peak of the last economic boom in 2007. We were smart/ballsy enough to keep plowing money into our portfolio all throughout the downtown. On the income front, DW has done very well, and has seen ~ 50% growth in employment income since 2007. I on the other hand, have seen my wages stagnate since 2008 (barring a ~10% bump when I switched employers). My previous employer and current employer have frozen salaries since 2008. If the job wasn't so sweet and laid back, I would be looking harder for a replacement employment income source!
But the real wealth driver at this point is portfolio returns, not employment income. An economic downturn would be perfect for me at this point to assist us in buying more securities at fire sale prices (a la 2009).
I have seen so many crying about tough economic times that I usually keep my mouth shut (off the boards) about our financial successes.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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04-26-2012, 08:51 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Aug 2010
Posts: 1,440
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We've done well too, but like Fuego it had nothing to do with income. My salary has also been stagnat for a ridiculous number of years, but if I were to leave I couldn't replace my salary in this economy so all is good.
__________________
Learning how to be still, to really be still and let life happen - that stillness becomes a radiance -
Morgan Freeman
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