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Old 06-03-2010, 11:58 PM   #41
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property managers typically get a % of gross, not profit. mine gets 6% of gross from my rental portfolio. 10% is w-a-y too much to pay!
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Old 06-04-2010, 02:51 AM   #42
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The first $100k is the hardest mainly 1) if $100k is a lot compared to your salary (e.g. a few times that) and 2) if you're relying on compounding.

Another annoying problem with round target is that if you're investing and subjecting them to volatility, you can expect to pass these numbers a few times before it's solidly passed.
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Old 06-04-2010, 08:02 AM   #43
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To the original poster.....the investing world is not the same now, as it was when "experienced investor types" grew their portfolios.
You are in a marketplace that none of them have encountered, therefore none have any experience in how to deal with it. Myself included.
Telling stories about the past is fine, but it's pure folly to use these discussions as a road map for the future.
Many of the old, hard & fast rules are no longer valid.
Take great care in how you proceed.
These are particularly dangerous times in finance.
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Old 06-04-2010, 08:17 AM   #44
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To the original poster.....the investing world is not the same now, as it was when "experienced investor types" grew their portfolios.
You are in a marketplace that none of them have encountered, therefore none have any experience in how to deal with it. Myself included.
Telling stories about the past is fine, but it's pure folly to use these discussions as a road map for the future.
Many of the old, hard & fast rules are no longer valid.
Take great care in how you proceed.
These are particularly dangerous times in finance.
To the original poster: The above comments, like most comments on this discussion board, are nothing more than opinion and conjecture.

No one knows what the future holds for any of us and Shakespeare's "What's past is prologue" may or may not be applicable - this time it might actually be different. Since no one knows for sure the best option may be to live below your means, save your money and diversify your investments.

Please note that my comments are nothing more than opinion and conjecture.
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Old 06-09-2010, 05:44 PM   #45
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If you want to know my "method" in a nut shell for picking individual stocks. Go look at "good" dividend based funds like VIG the Div Appreciation Index and use that as your initial stock screen. From there go and look at the top 20 holdings. Look them up on Morningstar and look at their stats. Then think about the company. What do they do? Who do they sell to? How well will they do in a crap economy? From this you can make a wish list of stocks you want to buy. Now, just go and buy them
This isn't a bad approach. However, IMO stock picking is not so much about picking likely winners as it is avoiding the likely losers. E.g., no airlines, no restaurant chains, etc.

That means that I don't have the chance for the occasional 'ten-bagger', but so be it.
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Old 06-09-2010, 06:44 PM   #46
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This isn't a bad approach. However, IMO stock picking is not so much about picking likely winners as it is avoiding the likely losers. E.g., no airlines, no restaurant chains, etc.

That means that I don't have the chance for the occasional 'ten-bagger', but so be it.

Good point. Right now I own shares in the following stocks: CVX, JNJ, PG, KO, MO, PM, T
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Old 06-10-2010, 10:57 AM   #47
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These are particularly dangerous times in finance.
Reminds me of the old Mark Twain saying: "October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February."
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Old 06-12-2010, 08:14 PM   #48
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I've enjoyed reading this thread and hearing how other folks reached this milestone. It took me a while. My 20's were pretty much a mess. My former wife was not very good with money, and I was stupid/weak enough to stand by and let it happen. By the time I was 31, I was freshly divorced, $40k in debt, and due to a major move, earning a lot less than I was. I remarried about a year later, and my wife and I had some good team work going on. We watched the pennies and were able to buy our first house in 2003, while chipping away at the debt. My income started increasing pretty rapidly, and the key thing - the best financial thing accomplishment we ever made - was that we did not let our cost of living grow with it. We just continued living the way we were since we were perfectly happy, and still do to this day. We got through the debt by 2005. We needed a new car, so we started saving for it. We were determined not to get in debt again, so we were going to buy it outright with cash. By summer 2006, we had the money we needed. However there was 0% financing available on the car we wanted, so we changed our plans and financed it afterall. We were a bit unsure about what to do with the chunk of cash we had lying around, so we slapped 20k on the mortgage. After running one of those online mortgage calculators we were amazed to find out that we had already blasted 8 years of the end of our mortgage by doing this. So, we immediately set a new goal of paying down the mortgage enough that it would be done before we had to pay for college for our son (2021). We kept going and achieved that with about another 6 months of sinking every free penny we had into the mortgage. By then we had some momentum going, and started dreaming of actually getting the entire thing off our backs. We buckled down and continued working very hard at it month in and month out. As a result, we weren't affected at all by the stock market in 2008. In January 2009, we made our last payment, and boy! was that a good feeling?! If we're counting house equity as net worth (I do), then we crossed the 100k milestone sometime early-mid 2008. Since then, we've been able to save very well due to having all the money we were putting on the mortgage, plus the money no longer needed for the regular mortgage payment, to put back. We're creeping up on the 250k milestone now - another few months, and in the process of purchasing our first rental property.
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Old 06-13-2010, 12:53 PM   #49
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My first $100,000 seems impossible.

That's what Buffet and Gates once said also, I believe.
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Old 06-14-2010, 06:19 AM   #50
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I was at 100K (investments not net worth) at 30 years old. I did it via keough/sep/ira (all CD) on the tax defered side and CD's and DRIP on the taxable side. The AA for all was approx 85% CD and 15% DRIP. You have time and compounding on you side, therefore I NEVER lost 1 dollar of the principle in the tax deferred accounts. I have tracked my CD tax deferred stash against all my stocks and mutual funds and the CD's win hands down.

Add up all of contributions to date, compound them by say 4% per year and see if they are greater than what you have now. Let the number do the talking.
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Old 06-14-2010, 06:42 AM   #51
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[QUOTE=Cassius King;940520] Strictly growing through contributions. QUOTE]

This is your answer. In the early years nothing is going to increase your net worth faster. Even in the later years I did not have any stock or mutual fund that even came close to increasing my NW like good ole saving/401K contribution. Net worth went up because principle was never lost. As long as I have my principle and time, I live to fight another day.
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Old 06-14-2010, 07:00 AM   #52
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CK:

One thing I noticed. No one mentions rental real estate.
I agree. Every 5 years I bought a house to live in and rented out the previous house. 1031 tax exchanges are the greatest thing since sliced bread. Banks did not seem to care back then that you had converted it to rental as long as the mortgage was current.
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Old 06-14-2010, 09:36 AM   #53
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I was at 100K (investments not net worth) at 30 years old. I did it via keough/sep/ira (all CD) on the tax defered side and CD's and DRIP on the taxable side. The AA for all was approx 85% CD and 15% DRIP. You have time and compounding on you side, therefore I NEVER lost 1 dollar of the principle in the tax deferred accounts. I have tracked my CD tax deferred stash against all my stocks and mutual funds and the CD's win hands down.

Add up all of contributions to date, compound them by say 4% per year and see if they are greater than what you have now. Let the number do the talking.
That is both depressing, and funny... My generation has been really screwed so far as investing in the S&P 500 goes.

My 401k is fixed income heavy. We get taxed on the 401k at the marginal tax rate. So, I figure I might as well fill most of it up with bonds.
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Old 06-27-2010, 01:40 PM   #54
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I finished school in 1997. From that date forward it seems that I have seen little if no gains in my portfolio. Strictly growing through contributions. As soon as I think I'm getting close, this past month in the market happens (again!) and crushes my energy for awhile. It's really disheartening.
What are others doing? I know I can't be the only person of this generation facing the same experience.
From those that are more experienced, how long did it take to get to $100k? Am I correct in understanding that the first $100k is the hardest?
Thanks for letting me vent!

/rant!

Cheers, TheDude!
I finished school around the same time. Yup there have been lots of ups and downs.

Although I've talked to lots of people about it, I can't really say what the deal is with seemingly "whole" or "round" numbers. 100K is no different from 97K or 102K. I've heard the same thing about the first 1MM.

My $.02 is to stop focusing on the $100K mark. It helped me a lot to focus on the process. Finding more ways to put money aside for FIRE, finding / having / educating a DF / DH that shares the FIRE goal, and scrutinizing what was working and what wasn't working in my portfolio then doing something about it helped earn my freedom. Doing those things leaves little time for being disheartened about some random round number.
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Old 06-27-2010, 03:07 PM   #55
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My first $100,000 seems impossible.

That's what Buffet and Gates once said also, I believe.
Don't know about Buffett, but I don't think Gates was ever going to have trouble meeting FIRE criteria. His private preparatory school tuition cost three times as much per term as Harvard.
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