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Old 11-03-2017, 10:19 PM   #21
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Do you really think it is prudent to take financial advice from a 62 year old divorcee librarian who is still working and has less than $1 million to her name? Even if it is free? No chance.

But wait... she wrote "Our Bodies, Our Shelves: A Collection of Library Humor" so she must be qualified to dispense financial advice.

Plus, she is conveniently ignoring inflation risk.

If her ex-husband is wealthy as she states, perhaps she should consider claiming spousal benefits at her FRA rather than waiting until 70 to claim on her own record.
I wasn't referencing the article as "advice".

I dont know if the author ignored inflation risks or not... but I didn't ignore inflation in my question.

Dawg52 nailed it: "This is just another one of those....'why play if you have already won the game?' threads. "
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Old 11-03-2017, 10:20 PM   #22
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If I had "won the game", then yes, I would be fine with nada. However, I'm quite certain that I will not win. To me, winning would be about $5M, maybe more. Basically, it would have to be enough to live at about $100K in today's dollars (spendable money - net of taxes . . .) for what I hope is about 40+ years. Whatever that amount is, it's a lot more than I'll ever have. Therefore, I'll be diversified but more conservative in my AA as I get older.
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Old 11-03-2017, 10:53 PM   #23
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Originally Posted by pb4uski View Post
Do you really think it is prudent to take financial advice from a 62 year old divorcee librarian who is still working and has less than $1 million to her name? Even if it is free? No chance.

But wait... she wrote "Our Bodies, Our Shelves: A Collection of Library Humor" so she must be qualified to dispense financial advice.

Plus, she is conveniently ignoring inflation risk.

If her ex-husband is wealthy as she states, perhaps she should consider claiming spousal benefits at her FRA rather than waiting until 70 to claim on her own record.
I don't know about the woman in the article but matching strategies are made up of investment approaches that do not use stocks or any type of mutual fund and are designed to take inflation into account.
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Old 11-03-2017, 10:54 PM   #24
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I think it's good to have a predictable income stream .. to pay for your expenses .. that gives you a peace of mind.

I think it's also important to have CASH money for emergencies.. that's very valuable.

But I also think it's good to have some money put away in something like the stock market with a higher potential return .. but it's important to havev the other 2 when there is a drawdown, You need to have them in order to ride out the down years .. if you're pulling money out during the down years, that's a recipe for disaster and that's when sequence of returns can really hurt you.
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Old 11-03-2017, 11:14 PM   #25
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I can't afford the taxes to do this.
There is definitely that!
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Old 11-04-2017, 05:53 AM   #26
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You don't know you've won the game for sure until you're dead.
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Old 11-04-2017, 06:41 AM   #27
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You don't know you've won the game for sure until you're dead.
True but Firecalc says so....so it must be true.
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Old 11-04-2017, 07:13 AM   #28
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I just got back into the market last month
LOL, market-(mis)timing quote of the year.
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Old 11-04-2017, 07:47 AM   #29
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Even if you have no desire to leave any inheritance or other money behind once you are gone, it’s not logical to leave easy money with reasonable risk out of your investment allocation.

Only way it makes sense is with the “won the game” level of savings.

It’s also hard to accurately predict your date of death, short of planned suicide
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Old 11-04-2017, 07:56 AM   #30
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If I take what I have now and divide it into 30 years, that's more than what I spend in the last 12 months. And then, I will get SS on top of that.

So, if I can just match inflation with a conservative investment, I should be OK, right?

No, I am staying in the market. The up-and-down makes life more interesting.
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Old 11-04-2017, 07:57 AM   #31
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I expect I'll always have at least 20% in equities once I reach 80.

Before that, can't see dropping below 35% even at 70.
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Old 11-04-2017, 08:12 AM   #32
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If I were 75 or 80 and had plenty of money, I wouldn't mind making nada. Right now (age 59), I need equities to have any hope of making my money last to 95.

Having said that, my 96 year old father hasn't been in the stock market since he retired 35 years ago and has done ok. He obviously hasn't been making much money, but his personal inflation rate is pretty low.
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Old 11-04-2017, 08:15 AM   #33
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Here's a person who has become financially independent, stress free and living her life the way she wants. To me, that's success! "Just another won the game article" - I wouldn't dismiss somebody who shares how she became a winner, I like winners. The generalization about inflation always comes up, yet the only number that counts is your personal inflation rate. Even on this forum, many have shown their rate is much lower than the government's number. The only definite about that government number is it is very unlikely to match your individual experience. Yet again and again it's referenced as a hard number. How condescending to reference her as a "divorced librarian" so why listen to her? Her strategy of investing in a 60/40 index fund and leave it alone for many years is a lot more Warren Buffet like than the many strategies and approaches (most of which the overwhelming real life evidence shows will underperform her approach) that are discussed on this forum. Thanks for sharing!
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Old 11-04-2017, 08:18 AM   #34
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If I were 75 or 80 and had plenty of money, I wouldn't mind making nada.
Depends on how you define having "plenty of money."

I'm 70 and have more money than when I retired 12 years ago, yet I'm 42% equities and have no plans to change at 75 or 80 - assuming I get there.
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Old 11-04-2017, 08:18 AM   #35
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Grandma has a pension covering all her expenses and then some, and only needs some cash as spare for emergencies that will likely never arrive. So she is 100% in fixed rate, and will remain that way.

It allows her to sleep well, know exactly where the money is, no surprises.

DM has some 30% equities, to dampen long term inflation and balance risks. She has no SS to speak of, so it needs to last her lifetime.

And I'm higher still, being not 40 yet and relying mostly on returns on capital if I want to make it to the end in reasonable comfort.
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Old 11-04-2017, 08:23 AM   #36
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My strategy was to find out what my risk tolerance was. Once I knew that I could plan around it. So I have 36% in a relatively stable bond fund. Sure it will lose money in a bear market, but not anything to lose sleep over. I also hold 10% in cash. The rest is in equities.
My income I get partly from bonds and partly from equities. So I still have enough in stocks to get growth and at the same time some protection on the downside.
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Old 11-04-2017, 08:29 AM   #37
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My crystal ball is working particularly well this morning! I see the following:

1) The market will continue on a tear for 3 more years.
2) The article author will begin to compute how much money she would have made had she stayed in.
3) She will "feel" remorseful since her friends and family (all ne'er-do-wells) are getting rich in the market and she has to listen to it everyday.
4) She will think its different this time and get back in after loosing 3 years of gains.
5) The market will drop 37% (I mentioned the crystal ball was working well).
6) The author writes a new article titled "See, I was right after all".

If you need proof of the above, see her quote.

"But if the market totally tanks tomorrow, you ask, and stocks become such a crazy bargain that I’d be a fool not to put at least some of my money back into that mutual fund that served me so well, wouldn’t I?

Of course I would! I’m no fool." Yep, she is a DMT.

So no, I will not follow her lead. I will continue to dance with the one that brought me, my well thought out AA.

FN
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Old 11-04-2017, 09:00 AM   #38
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You don't know you've won the game for sure until you're dead.
In my case, it's only after both me and the Unindicted Co-Conspirator are dead that the game can be considered won. Neither of us will be celebrating.
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Old 11-04-2017, 09:13 AM   #39
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Originally Posted by pb4uski View Post
Do you really think it is prudent to take financial advice from a 62 year old divorcee librarian who is still working and has less than $1 million to her name? Even if it is free? No chance.

But wait... she wrote "Our Bodies, Our Shelves: A Collection of Library Humor" so she must be qualified to dispense financial advice.

Plus, she is conveniently ignoring inflation risk.

If her ex-husband is wealthy as she states, perhaps she should consider claiming spousal benefits at her FRA rather than waiting until 70 to claim on her own record.
I hope no one takes her article as sound financial advice. It is simply her story about how she thinks she has won the game.

She points out that she put money in a vanguard index fund, that sounded a lot like a vangaurd balanced fund, and added to it regularly.

Her story has some helpful elements especially to people who don't know "come here from sic'em" about investing in equities. If you pick a good low cost fund from a quality firm like Vaguard, contribute regularly and let it grow for three plus decades, it will grow.

So her story is interesting but I would not seek her out for financial advice.
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Old 11-04-2017, 09:25 AM   #40
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I think the mindset of people will change if and when a meaningful stock market correction sets in...

In general, now is a time of caution in the markets since they are priced for perfection.
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