Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 06-12-2017, 08:54 AM   #61
Recycles dryer sheets
 
Join Date: Feb 2013
Location: Makakilo and Reno
Posts: 374
Thanks easysurfer
Kimo is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-12-2017, 09:05 AM   #62
Thinks s/he gets paid by the post
 
Join Date: Aug 2006
Posts: 1,525
It's funny, once you have a lot of money, there are two mindsets that I think you can have--

1. I don't need to take any risk anymore, so I can go to all bonds/cash

2. The fluctuations of the market can't hurt me anymore, so I can go 100% stocks.

Ultimately, I am closer to the second mindset than the first, but I think each is valid. However, I also tend to temper my asset allocation based on the valuations of what I invest in ( dirty market-timer that I am). I would not be comfortable at 100% stocks at current levels no matter how much money I had. I'm at about 75/25, which is the lowest I've been since 1999/2000.
Hamlet is offline   Reply With Quote
Old 06-12-2017, 10:11 AM   #63
Thinks s/he gets paid by the post
 
Join Date: Apr 2010
Posts: 4,079
No. We want to at least keep up with inflation on an after tax basis.

We have adjusted our portfolio. Over the past five years of early retirement it has been over weight in equities. We are scaling that back a little and doing the rest in short term bonds. It is a managed portfolio.

We have taken advantage of sequence of returns but do not want to push the envelope. Most of our living expenses are covered by pensions, etc.
brett is online now   Reply With Quote
Old 06-12-2017, 10:24 AM   #64
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 11,159
Quote:
Originally Posted by Kimo View Post
Thanks easysurfer
You're welcome Kimo.

I still invest as I'm not in the position to just quit and walk away. But on the part of being true to yourself, you don't want to end up living someone else's life just to fit in to their idea of what should you be doing.

I don't see a problem with just quitting at all. If you can for sure pull it off.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is online now   Reply With Quote
Old 06-12-2017, 10:38 AM   #65
Recycles dryer sheets
 
Join Date: Feb 2013
Location: Makakilo and Reno
Posts: 374
easysurfer, If I sold all my holdings except for my IRA I could use my current cd's, my annuity I already own and buy more cd's from the proceeds of the investments and start SS (66) I would be making more proceeds than I do now and I don't spend what I receive now. I would still have about 290,000 in my IRA. The above plan would generate about 80K to 85K yearly and we average 40K to 50K yearly spending the last 5 years of retirement. We also never look at something and say can we afford it, we just live our lives like we were wor**ng and don't look back. I will say we are not lavish people as even when we were making 6 digit incomes we still lived like we do today just by choice.
Kimo is offline   Reply With Quote
Old 06-12-2017, 12:25 PM   #66
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 11,159
If I was in the situation of having plenty more cash than I'll ever spend in my lifetime, don't know what I'd do.

Just read there was only 1 player in the recent power ball and won almost $450 Million (before taxes). Before he or she falls in the lotto winner curse , I wonder if the the winner's thought is just put the winning in the bank or more money to invest?
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is online now   Reply With Quote
Old 06-12-2017, 12:28 PM   #67
Recycles dryer sheets
 
Join Date: Feb 2013
Location: Makakilo and Reno
Posts: 374
I know if it was me it all go in the bank with that much!
Kimo is offline   Reply With Quote
Old 06-12-2017, 12:29 PM   #68
Recycles dryer sheets
 
Join Date: Feb 2013
Location: Makakilo and Reno
Posts: 374
PS. Think of the bank perks!
Kimo is offline   Reply With Quote
Old 06-12-2017, 12:35 PM   #69
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 11,159
Quote:
Originally Posted by Kimo View Post
I know if it was me it all go in the bank with that much!
I think another way to look how you are thinking about sitting on your cash or keep investing, is if the market goes up, would you think "Man, wish I was in the market to get those gains" or "Doesn't matter to me, I've made my decision and am living comfortably".

As, I said early, only you can decide what's best for you.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is online now   Reply With Quote
Old 06-12-2017, 01:03 PM   #70
Recycles dryer sheets
 
Join Date: Feb 2013
Location: Makakilo and Reno
Posts: 374
Great question, and great answer (IMHO) I don't really pay much attention to it now.
Kimo is offline   Reply With Quote
Old 06-12-2017, 01:17 PM   #71
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 11,159
Quote:
Originally Posted by Kimo View Post
Great question, and great answer (IMHO) I don't really pay much attention to it now.
I use the 100 - age formula for my AA. So, plan on having at least some in equities, unless I live past 100. I think if so, then there'd be other things more pressing on my mind than how much invested I'm in.

The 100 - age formula keeps my emotions in check during the ups and downs so I don't need to decide.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is online now   Reply With Quote
Old 06-12-2017, 01:43 PM   #72
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 8,773
Quote:
Originally Posted by Kimo View Post
PS. Think of the bank perks!
Probably get a free toaster.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
Dawg52 is offline   Reply With Quote
Old 06-12-2017, 02:00 PM   #73
Thinks s/he gets paid by the post
Fedup's Avatar
 
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
Quote:
Originally Posted by Hamlet View Post
It's funny, once you have a lot of money, there are two mindsets that I think you can have--

1. I don't need to take any risk anymore, so I can go to all bonds/cash

2. The fluctuations of the market can't hurt me anymore, so I can go 100% stocks.

Ultimately, I am closer to the second mindset than the first, but I think each is valid. However, I also tend to temper my asset allocation based on the valuations of what I invest in ( dirty market-timer that I am). I would not be comfortable at 100% stocks at current levels no matter how much money I had. I'm at about 75/25, which is the lowest I've been since 1999/2000.
Your post reminds me why my AA is 50/50. I'm in between 1 and 2.
Fedup is offline   Reply With Quote
Old 06-12-2017, 02:23 PM   #74
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,867
Quote:
Originally Posted by Hamlet View Post
It's funny, once you have a lot of money, there are two mindsets that I think you can have--

1. I don't need to take any risk anymore, so I can go to all bonds/cash

2. The fluctuations of the market can't hurt me anymore, so I can go 100% stocks.

Ultimately, I am closer to the second mindset than the first, but I think each is valid.
I'm in the 2) camp too. I approached retirement with over 100x my income requirement in savings.....because I get income from a rental property that covers 2/3rds of my budget. Then I used about 20% of those savings to buy into my employer's DB pension and that gives me another 2/3rds of my budget, so I have a surplus most months. I could put my capital in CDs and be perfectly ok, but as the ups and downs of the market don't affect my income I decided to take on more risk. So I've stopped rebalancing and I'll let my AA drift up towards 75/25. My fixed income now consists of the bond allocation in Wellesley, some TIAA-Traditional paying 4.85% and cash in a stable value fund that I use for emergencies and big ticket items.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 06-12-2017, 02:28 PM   #75
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 2,053
Those in #2, why not add some leverage as well? Borrow 30% and go 130% long.
jim584672 is offline   Reply With Quote
Old 06-12-2017, 03:48 PM   #76
Recycles dryer sheets
 
Join Date: Nov 2010
Location: Henderson
Posts: 87
One reason to stay in equities beyond probable need is to benefit today's workers, people who need capital investment to make their labor profitable. In my thirty years in the civilian workforce, I benefited from access to capital far beyond my own at the time. Large manufacturing establishments supported my work and, for a prime example, gave me the use of the most advanced commercial computers. That is, you could pass along to other people a benefit you received from older investors. Please note that I am NOT saying you have a moral obligation to do this. I don't know what your ethical structure is like, nor would I presume to judge it even if I had the details. I mean only to mention a possibility and one that guides my own management of a retirement stash.
Ted_Shepherd is offline   Reply With Quote
Old 06-12-2017, 04:16 PM   #77
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,867
Quote:
Originally Posted by jim584672 View Post
Those in #2, why not add some leverage as well? Borrow 30% and go 130% long.
I can afford to lose everything.......but not more than everything!
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 06-12-2017, 04:18 PM   #78
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,867
Quote:
Originally Posted by Ted_Shepherd View Post
One reason to stay in equities beyond probable need is to benefit today's workers, people who need capital investment to make their labor profitable.
My reason to stay in equities is to maximize potential return to leave more to my heirs.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 06-12-2017, 04:25 PM   #79
Thinks s/he gets paid by the post
 
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
Quote:
Originally Posted by nun View Post
My reason to stay in equities is to maximize potential return to leave more to my heirs.
Likewise. I view it as a fairly low risk approach to leaving a significant legacy. Really investing for my daughter. Hope she appreciates it. I suspect she does.
Danmar is offline   Reply With Quote
Old 06-12-2017, 06:45 PM   #80
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,451
Send a message via Skype™ to kcowan
Quote:
Originally Posted by Hamlet View Post
It's funny, once you have a lot of money, there are two mindsets that I think you can have--

1. I don't need to take any risk anymore, so I can go to all bonds/cash

2. The fluctuations of the market can't hurt me anymore, so I can go 100% stocks.

Ultimately, I am closer to the second mindset than the first, but I think each is valid. However, I also tend to temper my asset allocation based on the valuations of what I invest in ( dirty market-timer that I am). I would not be comfortable at 100% stocks at current levels no matter how much money I had. I'm at about 75/25, which is the lowest I've been since 1999/2000.
Yes I have two sons and 5 GCs so I am now investing for them. I can afford to take more calculated risks. So I am moving to 70/30 but will take my time looking for bargains if there is a sale soon.

One thing about FI is that it does not burn a hole in my pocket. I would rather take a careful approach than jump in for a quick 20% downdraft. I also focus on dividend payers rather than the rockets.
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
43- To Quit or Not to Quit- and when... ugeauxgirl Hi, I am... 33 02-04-2016 04:09 PM
just QUIT at 44. joebloe Hi, I am... 19 05-05-2014 10:23 PM
Just can't quit MRGALT2U Life after FIRE 27 07-12-2005 07:37 PM
Why don't more people just quit? RockMiner Other topics 66 05-02-2005 01:21 PM
Trailer Home with Land or Small House...You Decide daystar Young Dreamers 18 12-04-2004 11:20 AM

» Quick Links

 
All times are GMT -6. The time now is 12:22 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.