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12-19-2007, 05:52 PM
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#41
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2006
Posts: 7,555
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Quote:
Originally Posted by Sweetlip
The big expenses in life, INMHO, are interest payments (mortgage, car, boat loan interest), depreciation, and the cost of raising and educating kids.
Whilst you can make savings on day to day living expenses such as food, the savings on those things will pale into insignificance compared with interest, depreciation and the cost of kids.
As an afterthought, I have also minimised transactional costs pretty well by living in the same house for 25 years and not trading in the old wife at any time over the past 32 years. (After all, she was the best that I could get with the car that I had!)   
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I agree with you on the big picture. Although I would say the cost of toys, fashion, and eating out, can rival car payments for many Americans.
I also find that many very frugal people have an aversion to risk when it comes to investing. They'll be justifably proud of saving $20 with coupons and smart shop on groceries each week, but may have $50,000 CD at 3.5% in their local bank, instead of getting a 6% CD a Pen Fed, or better yet having a Vanguard stock index fund.
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12-20-2007, 12:54 AM
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#42
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gone traveling
Join Date: Aug 2006
Posts: 994
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Tonight on the Dave Ramsey TV show,
he said when the top 400 wealthiest
people were asked what was their
number one wealth gathering advice...
the vast majority said: Stay out of debt !
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12-20-2007, 01:02 AM
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#43
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gone traveling
Join Date: Aug 2006
Posts: 994
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Quote:
Originally Posted by youbet
Again, don't get me wrong, I squeeze value out of every dollar I spend. But I think accumulating adequate dollars so as to not have to squeeze too hard is a very good thing. And it's possible to learn to spend less as you go along in RE, while it's too late to accumulate more wealth.
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It is not too late to accumulate more wealth in retirement.
I am retired... have a very modest income... but am still able
to add more money to my nest egg by living a comfortable,
frugal lifestyle.
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12-20-2007, 01:11 AM
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#44
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gone traveling
Join Date: Aug 2006
Posts: 994
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Quote:
Originally Posted by clifp
I also find that many very frugal people have an aversion to risk when it comes to investing. They'll be justifably proud of saving $20 with coupons and smart shop on groceries each week, but may have $50,000 CD at 3.5% in their local bank, instead of getting a 6% CD a Pen Fed, or better yet having a Vanguard stock index fund.
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You can't calculate your true net worth... until you cash out of the tulips
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12-20-2007, 12:27 PM
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#45
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Full time employment: Posting here.
Join Date: Aug 2005
Location: Philly 'burbs
Posts: 547
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Be very aware of recurring payments, they add up! In retirement, a 4% withdrawal rate means you need 300x a monthly payment in savings. Take an $80/month cell phone bill. You'll need $24,000 in savings in order to safely pay for that $80 per month.
I am much more wary of recurring payments, even small ones, than I am with one-time purchases.
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12-20-2007, 01:50 PM
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#46
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 11,313
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Quote:
Originally Posted by Helena
It is not too late to accumulate more wealth in retirement.
I am retired... have a very modest income... but am still able
to add more money to my nest egg by living a comfortable,
frugal lifestyle.
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Know what ya mean Helen. DW and I enjoy first class world travel, McMansions, luxury cars, fancy electronics, pricey entertainment, giving generously, and leaving the lights on when we're away. But, we do it all frugally, but comfortably, and therefore need next to no income. We also enjoy seeing our portfolio double annually.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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12-20-2007, 02:00 PM
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#47
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by clifp
I agree with you on the big picture. Although I would say the cost of toys, fashion, and eating out, can rival car payments for many Americans.
I also find that many very frugal people have an aversion to risk when it comes to investing. They'll be justifably proud of saving $20 with coupons and smart shop on groceries each week, but may have $50,000 CD at 3.5% in their local bank, instead of getting a 6% CD a Pen Fed, or better yet having a Vanguard stock index fund.
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I thought Pen Fed was for govt workers and military vets, am I wrong?
Banks make a LOT of money off their depositor's ignorance. One time I showed a guy who just rolls CD's how much money he could have had in a balanced fund for 20 years when compared to the average 5% rate he got on the CD's.........and there was a LOT of silence........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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12-20-2007, 02:49 PM
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#48
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Boise
Posts: 4,908
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Quote:
Originally Posted by FinanceDude
I thought Pen Fed was for govt workers and military vets, am I wrong?
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You can join if you're a relative of a vet, so I qualify because my Dad was USAF. Failing that, you can pay $20 to join some organization -- NMFA, I think -- and then join PenFed.
They're a top notch organization. I've had a second mortgage and a credit card with them and been very happy.
2Cor521
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
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12-20-2007, 02:55 PM
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#49
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Boise
Posts: 4,908
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whoops, double post.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
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12-20-2007, 03:05 PM
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#50
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Recycles dryer sheets
Join Date: Oct 2007
Posts: 463
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I am intrigued by your ideas and wish to subscribe to your newsletter...
__________________
TickTock Rule Of Finance - heavily discount any promises of money/benefits to be paid to you in the future
"I've traded love for pennies, sold my soul for less" -Jim Croce, Age
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12-20-2007, 03:10 PM
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#51
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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He will be happy to oblige, but you must understand that he only does it as a hobby to entertain him between trips to hang out with Princess Caroline.
All proceeds will be donated to the Ray Kurzweil Institute of Eternal Life.
Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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12-20-2007, 05:23 PM
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#52
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gone traveling
Join Date: Aug 2006
Posts: 994
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Didn't your mother tell you... mocking strangers is not nice.
Remember what the good book says about entertaining angels
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12-20-2007, 06:15 PM
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#53
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 11,313
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Quote:
Originally Posted by Helena
Didn't your mother tell you... mocking strangers is not nice.
Remember what the good book says about entertaining angels 
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Oh....... I'm sorrrrrry.  Sometimes a little sarcasm just spills out!
DW and I, 19 months into RE, find ourselves to be more typical Americans than many of my comrades here on the Firecalc board. We have a very livable RE income, are enjoying RE a bunch and are grateful for what we have. But, we'd spend more if we could afford it. It seems like most things we enjoy, even outdoorsy things, cost money. And our FIRE portfolio all came the hard way, no inheritance, no big financial wins, no high paying jobs......just slow and steady over many years. So all this recent talk on the board (beyond this thread) where money comes easy and fun is cheap sometimes leaves me a little exasperated!
Helen, seriously, congratulations on enjoying retirement while spending modestly and even saving. We just can't do it........ Our withdrawal rate is conservative, and we're very disciplined about it, but if we had another $5k scheduled to spend in 2008, I'd be at travel web sites right now!
TickTock - I'd like to start a newsletter! I'd call it "Doing it the Hard Way!"
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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12-20-2007, 06:16 PM
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#54
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,799
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POGO - we have met the enemy and we is them.
Hide from yourself - max every available tax deferred offered - preferably in broad based low expense index funds(500Index for me) plus a few taxible mutual funds - ON AUTO DEDUCT - don't look, don't fiddle or do any 'managing'.
Party till you puke (tongue in cheek - but I did live thirty years in New Orleans) - the creative soul(read cheap bastard) will find a way to boogie.
Dollar cost average over a long period of time - time in the market not market timing and all that there.
heh heh heh - isn't hindsight just wonderfull?
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12-20-2007, 07:40 PM
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#55
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Moderator Emeritus
Join Date: Jul 2005
Posts: 2,811
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 I guess I made it to a comfortable FIRE through a variety of means including being "careful" about spending and staying out of debt. I would not say I have ever been frugal as defined by this board but I have seen some very tough times and still managed to get to FIRE.
I had a good job with a decent salary but I earned every penny of it. I lived below my means but was not frugal. I saved more each year and invested in many different places. I lost a bunch but I also made a bunch. I stepped up in housing and only lost once so far. Equity allows one to do that. I also moved some of this equity into "toys" which, don't make money but allow(ed) me to have fun despite some rough times in my life.
Being money wise is more the issue in my mind. Shop around for a good value; not just the lowest price. I still have many items I have purchased over the years because I bought the best I could afford at the time. Being cheap can actually cost you more in the long run when you have to replace an item over and over again. I usually keep cars 10 year or so and always pay cash for them. I shop every year on car and home insurance for the best value.
I pay more for satellite TV and other toys than the average Joe but I don't go out much so the monthly cost is acceptable to me. We do have a very nice RV we bought this year and while I know it is a hole in the road you throw money into, it is something we enjoy and I don't want to miss out on the things we enjoy because someday we won't be able to do them anymore.
We have a good income from our investments and we plan on spending a lot while we can do what we want to do. Soon enough we will be stuck around the house and not able to go and do things that make us happy. If we end up with a small portolio when we are 90 then who cares? I will most likely be dead before then anyway. We plan on living until we are 95 and our financial plan will allow it but we don't expect to ever see that age nor really want to with our various health issues.
Frugal is good if you don't have much income or if you want to stretch what you have for a long time. I don't care to be frugal...just money wise.
__________________
Work? I don't have time to work....I'm retired.
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12-21-2007, 08:59 AM
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#56
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by SecondCor521
You can join if you're a relative of a vet, so I qualify because my Dad was USAF. Failing that, you can pay $20 to join some organization -- NMFA, I think -- and then join PenFed.
They're a top notch organization. I've had a second mortgage and a credit card with them and been very happy.
2Cor521
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My dad was also USAF. What do they need to verify that??
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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12-21-2007, 09:04 AM
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#57
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: No Country for Old Men
Posts: 47,504
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FinanceDude, this tells you all there is to know about how to join PenFed CU...
https://www.penfed.org/howToJoin/overview.asp
(Full Disclosure: I posted this while wearing a playful smirk at the irony of providing a financial adviser with financial assistance.  )
__________________
Numbers is hard
Retired in 2005 at age 58, no pension
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12-21-2007, 11:01 AM
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#58
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by REWahoo
FinanceDude, this tells you all there is to know about how to join PenFed CU...
https://www.penfed.org/howToJoin/overview.asp
(Full Disclosure: I posted this while wearing a playful smirk at the irony of providing a financial adviser with financial assistance.  )
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Shows you how much I invest in CD's.........well never.........plus, the fact I didn't serve has kept me from doing things such as this or joining the local VFW.......
Maybe it's a personal thing. Now ask me a question about UIT's or manged futures so I know I'm still an advisor..............
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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12-21-2007, 11:40 AM
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#59
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: No Country for Old Men
Posts: 47,504
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Hey, it's not personal! And you are anything you want to be...on the net!
__________________
Numbers is hard
Retired in 2005 at age 58, no pension
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12-21-2007, 02:08 PM
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#60
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by REWahoo
Hey, it's not personal! And you are anything you want to be...on the net!
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Maybe I'll post my CRD number on here...........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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