Joe Domiguez Q&A on Stocks ( Your Money or Your Life Co-Author)

[Hydroman]

http://contrib.jrb3.com/SLNet/Articles/joe-on-stocks.php

And here is the current related thread in the Simple Living Network (SLN) Forum

http://www.simpleliving.net/forums/topic.asp?TOPIC_ID=37607

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Of course the YMOYL crowd does not believe in inflation.

Opinions?

 

[haha]

Of course the YMOYL crowd does not believe in inflation.

Opinions?

Does not your statement above tell you everything you need to know about the usefulness of anything they might say?

Not believing in inflation is close to not believing in entropy.

Ha

 

[Nords]

http://contrib.jrb3.com/SLNet/Articles/joe-on-stocks.php
And here is the current related thread in the Simple Living Network (SLN) Forum
http://www.simpleliving.net/forums/topic.asp?TOPIC_ID=37607
You may need to register to read the above.
Of course the YMOYL crowd does not believe in inflation.
Opinions?

Sure, 100% Treasuries will work fine. Just make sure your portfolio is big enough.

By "not believing in inflation", the book discusses how electronics and bicycles were cheaper in the 1990s than 1980s. It's true that the cost of some items drops over time, especially computers. However the authors ignored the galloping rise of healthcare and other insurance, home values/rents, heating oil, and a host of other things that I'd consider essential to a decent quality of life. I'd have a hard time explaining to my spouse in our eighties why we're seeking cheaper lodgings to avoid non-existent inflation.

Test a couple runs in FIRECalc with your retirement expenses-- one run with a retirement portfolio of 100% Treasuries, another with 50% stocks/50% Treasuries, and a third with 100% stocks. Try to achieve 90% success with each and decide which portfolio you're willing to work for.

 

[yakers]

Joe Domiguez is a terriffic person and inspirational writer but his investment advice is, to be polite, aweful. Don't follow his investment advice but don't dismiss the contribution he made to shifting a lot of people's thinking about work, retirement & life.

 

[shorttimer]

the last reprint of the book was 1999, but it was written much before that.

Like any book, I doubt following the investment advice of something ten years old or so could be disasterous. Who knew that health care would be in the state it is in today, or that pensions would be taken over by pension guarantee when the CEO's got millions in restructuring? And on and on.

The basic message of the book is valuable, but he lived in shared housing, had no kids and his way of life unlike most here.

 

[MooreBonds]

Sure, 100% Treasuries will work fine. Just make sure your portfolio is big enough...

Or make sure your treasuries consist of 14% 30-year bonds that you buy @ par.

 

[FinanceDude]

Or make sure your treasuries consist of 14% 30-year bonds that you buy @ par.

Good idea!! Got any I can buy..............

 

[rmark]

I think its interesting he refused to answer the question about indexing. Might have shot down his complaints about holding individual stocks.

 

[rmark]

I had the original tape set years ago, and have always thought the book suffered from too many authors. The original tapes were oriented to helping you focus your spending on your interests, without the environmental and service work guilt trip, and with early retirement as a by-product, not a goal. I found the book to be a disappointment. It now seems to be used more as a recruiting tool for activist volunteers. It's philosophy, not personal finance.

 

[Running_Man]

I found the book to be a disappointment. It now seems to be used more as a recruiting tool for activist volunteers. It's philosophy, not personal finance.

Personal Finance is the control of your expenditures is it not? You can live within your means or you can try and maximise your returns. His book to me was very clear, find out what you feel is important, track and budget it and start saving money to earn interest that will pay for those expenditures.

I don't know how many people really want to live a life as what they are implying you would end with, but for the most part inflation for what is essential in America is very low assuming you own your house. Furnaces and Air Conditioners are far more fuel efficient now than any increase in the commodities used to run them. Today's best Nike shoes are no doubt more comfortable yet do they protect feet any better than the standard gym shoe of 35 years ago? Those can still be bought at a fraction of the price of the top Nike shoes.

There is a reason the average home has increase in size from 1200 to 2100 square feet over the past decades. Real life living standards have improved. Keeping up with the Jones's is the main source of inflation in America today.

For individuals living on such a simple lifestyle interest income is best - why if you feel that too much of the world is spent on unnecessary items would you put your money into an investment that counts on a continued surge in spending on those items.

Personal finance is how you control your money, money is merely a stored unit of your time. Therefore personal finance is a control you exercise of your money and your time.

The range in America on the spending side goes from the Unabomber at $300.00 per year to the millions per year spent by Donald Trumps always doing the first class ride. Inflation rates at each level in between are very definitely personalized and not the CIP.