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07-24-2016, 12:09 PM
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#61
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gone traveling
Join Date: Mar 2015
Location: Greenville
Posts: 653
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Quote:
Originally Posted by Linney
We felt "meh" about it too. As a member of this forum, by the time you reach that 1st million you have a really clear understanding that it is not enough* to sustain a lasting freedom from work. Sad but true![/SIZE]
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Not exactly. I think it depends on each persons situation. $1MM could be plenty.
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07-24-2016, 01:05 PM
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#62
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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Yes it is. You have to go for stuff that you really want and like, makes it easier to justify.
I still won't blow dough on stuff I don't care about so I can blow more dough on the stuff I really like -
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07-25-2016, 09:22 AM
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#63
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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I have nine figures, if you count the digits to the right of the decimal point...
__________________
Have Funds, Will Retire
...not doing anything of true substance...
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07-25-2016, 11:35 AM
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#64
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Thinks s/he gets paid by the post
Join Date: Aug 2014
Location: Chicago West Burbs
Posts: 2,998
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1mil is still a big amount compared to many others' retirement savings. It is probably not be enough to retire at age 32 with a family of 5. I always told people I was working on my 2nd mil since I heard it was easier. Once I get that, I'd go beck to working on the 1st mil. But seriously folks, if you don't have large expenses and LBYM , even a low-mid income earner can reach that 1Mil mark before FRA. If they do, then they will be a lot better off in retirement than many of their peers. Along with other incomes (pension for some, SS for some) that 1Mil can support them thru their retirement at the level they have been living.
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07-25-2016, 12:32 PM
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#65
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Dryer sheet aficionado
Join Date: Jul 2016
Location: Lowell
Posts: 35
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At some point recently, we passed the $2 million mark in savings/investments. Only debt is a car loan that opted for because the interest rate was so low. House is paid off and up we have plenty of equity built up.
It's a good feeling, but we're just entering retirement. If projections are right and our health holds over time, we should have a comfortable retirement. I was fortunate to have a pension, as did my wife at two of her jobs. That will help, especially when social security kicks in. I certainly don't feel wealthy, but I do feel secure.
__________________
Happiness is not something you postpone for the future; it is something you design for the present - Jim Rohn
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07-26-2016, 06:50 AM
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#66
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Thinks s/he gets paid by the post
Join Date: Nov 2013
Location: Twin Cities
Posts: 3,927
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Quote:
Originally Posted by tmm99
Yeah, if you are spending more and more money each year. Strangely, that is not happening to me. I don't know why.
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The classic "Your Money or Your Life" book goes into why individuals' inflation rates can be so much lower than the national rate. Basically, it's substitution effects that people can make (hotdogs on sale versus hamburgers) that the national formulas don't, because they are intended to calculate only rising or falling (hamburger) prices. Individuals can make such decisions about nearly every line item, though healthcare is probably the most scary rising one. I'm glad to hear the lower rate is true for you in real life as it's kind of a "big deal."
Sent from my iPad using Early Retirement Forum
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07-26-2016, 07:31 AM
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#67
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 5,178
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Quote:
Originally Posted by Markola
The classic "Your Money or Your Life" book goes into why individuals' inflation rates can be so much lower than the national rate. Basically, it's substitution effects that people can make (hotdogs on sale versus hamburgers) that the national formulas don't, because they are intended to calculate only rising or falling (hamburger) prices. Individuals can make such decisions about nearly every line item, though healthcare is probably the most scary rising one. I'm glad to hear the lower rate is true for you in real life as it's kind of a "big deal."
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Interesting. Thank you for your post. I believe that's what we do (substitution) - although in my case, it is not intentional. I try to buy within my budget, and I haven't raised my budget, but I haven't experienced any spending increase.
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07-26-2016, 09:01 AM
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#68
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,682
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I remember hitting the $1M mark in the tumultuous year of 2010, only to drop below it midyear (and below $900k) before rebounding and ending the year over $1M. I hit the $1.1M mark in 2012, $1.2M mark in 2013, and $1.3M mark in 2014.
Getting to $1.4M has been tough, though. First, I dropped below $1.3M in 2015 but got back over $1.3M earlier this year. I am just over $1.37M now so I might get there soon!
__________________
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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07-26-2016, 09:06 AM
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#69
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,682
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Quote:
Originally Posted by Markola
The classic "Your Money or Your Life" book goes into why individuals' inflation rates can be so much lower than the national rate. Basically, it's substitution effects that people can make (hotdogs on sale versus hamburgers) that the national formulas don't, because they are intended to calculate only rising or falling (hamburger) prices. Individuals can make such decisions about nearly every line item, though healthcare is probably the most scary rising one. I'm glad to hear the lower rate is true for you in real life as it's kind of a "big deal."
Sent from my iPad using Early Retirement Forum
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The substitution effect can also apply to more closely related items. Over the last few years, I stopped buying the more expensive cuts of chopped meat from the supermarket because the price gap between Ground Sirloin, Ground Round and Ground Chuck (the cheapest) has widened considerably, and not just on a percentage basis, and Ground Chuck at least at my supermarket is of good quality. This kind of substitution might not appear in general measures of inflation unless it compares more similarly priced items.
__________________
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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07-26-2016, 09:19 AM
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#70
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Recycles dryer sheets
Join Date: Jan 2016
Posts: 66
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Substitution effect might be part of it, but I bet the major driver of individual inflation rates going slower than national inflation rates are fixed long-term costs, and specifically fixed mortgage payments.
Over the course of a 30-year mortgage, housing prices will rise significantly, but the fixed payments on the 30-year mortgage will remain constant. (Of course, taxes and insurance will rise, but the overall housing costs will still rise much slower than inflation because of the fixed P+I payment).
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07-27-2016, 12:49 PM
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#71
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
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Quote:
Originally Posted by scrabbler1
the price gap between Ground Sirloin, Ground Round and Ground Chuck (the cheapest) has widened considerably, and not just on a percentage basis, and Ground Chuck at least at my supermarket is of good quality.
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One thing that has amazed me is that the same chain will price such items differently by neighborhood. Ground chuck will be relatively more expensive in poorer neighborhoods. In those stores, you should buy the good steaks.
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For the fun of it...Keith
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07-27-2016, 01:25 PM
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#72
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Recycles dryer sheets
Join Date: Jul 2013
Location: Villa Grande
Posts: 275
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If I can live comfortably and well on 3-4% of my liquid assets, then I feel secure. All else is noise.
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07-27-2016, 01:40 PM
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#73
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Full time employment: Posting here.
Join Date: Sep 2006
Location: SoCal
Posts: 927
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Quote:
Originally Posted by B0bL0blaw
Substitution effect might be part of it, but I bet the major driver of individual inflation rates going slower than national inflation rates are fixed long-term costs, and specifically fixed mortgage payments.
Over the course of a 30-year mortgage, housing prices will rise significantly, but the fixed payments on the 30-year mortgage will remain constant. (Of course, taxes and insurance will rise, but the overall housing costs will still rise much slower than inflation because of the fixed P+I payment).
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This is a good point. In CA, it's even more exaggerated, since property tax increases are capped at 2% per year. Over time, they'll generally rise much more slowly than inflation.
__________________
I can't complain, but sometimes I still do.
- Joe Walsh
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07-27-2016, 01:50 PM
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#74
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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I prefer ground chuck for burgers on the barbie, it's 80-20 lean-fat. Ground round is 85-15 here and ground sirloin is 90-10.
More fat makes a juicier burger with more flavor!
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07-27-2016, 06:09 PM
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#75
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Moderator Emeritus
Join Date: Feb 2005
Location: San Diego
Posts: 5,267
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Quote:
Originally Posted by RobbieB
I prefer ground chuck for burgers on the barbie, it's 80-20 lean-fat. Ground round is 85-15 here and ground sirloin is 90-10.
More fat makes a juicier burger with more flavor!
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Just have your squirt bottle filled with water, those BBQ fires with 20% fat burgers are napalm patties!
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07-29-2016, 05:53 PM
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#76
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: South central PA
Posts: 3,469
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If I ever got close to that I'd always fly first class.
Sent from my iPhone using Early Retirement Forum
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07-29-2016, 06:30 PM
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#77
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Dryer sheet aficionado
Join Date: Sep 2013
Posts: 28
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Like scrabbler, we went over, then under, then back over a million in the last few years.
We think that makes us multi-millionaires.
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07-29-2016, 06:59 PM
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#78
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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I did the "bob and weave" during the crash. Been stacking ever since.
Buy more when the price is low, cha-ching!
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07-29-2016, 07:05 PM
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#79
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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 EastWest Gal
If I ever got close to that I'd always fly first class.
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+1
That, plus a home on Rockaway Beach Road, Bainbridge Island.
Alas, I do not think that is going to happen, all those squiggly lines of FIRECalc notwithstanding. Or if it does, I will be so old I forget what it was that I wanted. All I will care will be someone to answer my bell, to help me to the bathroom.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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07-30-2016, 10:06 AM
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#80
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Thinks s/he gets paid by the post
Join Date: Nov 2013
Location: Twin Cities
Posts: 3,927
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Meh at hitting a million
Quote:
Originally Posted by B0bL0blaw
Substitution effect might be part of it, but I bet the major driver of individual inflation rates going slower than national inflation rates are fixed long-term costs, and specifically fixed mortgage payments.
Over the course of a 30-year mortgage, housing prices will rise significantly, but the fixed payments on the 30-year mortgage will remain constant. (Of course, taxes and insurance will rise, but the overall housing costs will still rise much slower than inflation because of the fixed P+I payment).
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Probably so since homes are most Americans' largest asset. Plus, homeowners can refinance when rates fall. Energy is often a big driver of the national inflation rate but ER's can often manage their personal energy costs by insulating their houses, relocating to better weather and walking or riding a bike because, by definition, no daily fixed commute costs!
Sent from my iPad using Early Retirement Forum
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