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Hit the $800,000 mark (Stock investments + cash only)
Old 01-12-2018, 04:58 PM   #1
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Hit the $800,000 mark (Stock investments + cash only)

The market really took up my 401k, letting my stock investments plus cash hit the $800,000 mark. Other assets like house, car, etc. not included. NW above $1.1M. On target to retire in 3-4 years if I want to. Living in the cheaper South, having a paid house and $1 million will work. Still hoping to have $1.1 mil - $1.2 mil by then. Hope to get to at least $930,000 by end of the year Dec. 31, 2018.
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Old 01-12-2018, 05:26 PM   #2
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see Fear & Greed thread.

16% returns are not normal.

how would you feel if your portfolio was 640,000 at the end of 2018. Bear market is 20% drop. We are overdue for a correction (10%) or a bear market (20%)

Don't forget your $1 million is before taxes too (retirement accounts)

congratulations by the way!
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Old 01-12-2018, 05:53 PM   #3
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Congrats! I'm a few years from that mark. Hopefully, all these gains will help offset any correction that comes along.
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Old 01-12-2018, 07:14 PM   #4
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Retire in 3-4 years? Things might be totally different then.
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Old 01-14-2018, 11:12 AM   #5
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No, More than $300,000+ is after-tax money, so I don't have to pay income taxes anymore on the $300,000+. So, right now, the $800K+ is actually equal to around $900,000 of pre-tax savings. And if I hit $900,000+ or more by end of year - that's equivalent to $1 Million in pre-tax savings. I reckon my after-tax savings will be around $350K - $360K with my salary at the end of the year.

No, I respectfully disagree with you on the bear market. Dow might head to 50,000 in a few years. Being an active trader for 30 years, investing in options and stocks, there is no bear market in 2018 because as Warren Buffett said the 25% gain in the tax reforms are not yet factored into the corporate earnings. Sure there could be some minor consolidation, but Dow is headin to 50,000 because of tech - AI, IOT, Blockchain technology . If the market falls a bit, then I'm putting more money it, buy Low and hold 16% return is nothing - that's the sign of the start of a Bull market. you're looking at 1000%-5000% returns in cryptos, lol.

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see Fear & Greed thread.

16% returns are not normal.

how would you feel if your portfolio was 640,000 at the end of 2018. Bear market is 20% drop. We are overdue for a correction (10%) or a bear market (20%)

Don't forget your $1 million is before taxes too (retirement accounts)

congratulations by the way!
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Old 01-14-2018, 11:14 AM   #6
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Well I guess .. just keep on working, right ? lol OMY - the one more year syndrome

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Retire in 3-4 years? Things might be totally different then.
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Old 01-14-2018, 12:33 PM   #7
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No, More than $300,000+ is after-tax money, so I don't have to pay income taxes anymore on the $300,000+. So, right now, the $800K+ is actually equal to around $900,000 of pre-tax savings. And if I hit $900,000+ or more by end of year - that's equivalent to $1 Million in pre-tax savings. I reckon my after-tax savings will be around $350K - $360K with my salary at the end of the year.

No, I respectfully disagree with you on the bear market. Dow might head to 50,000 in a few years. Being an active trader for 30 years, investing in options and stocks, there is no bear market in 2018 because as Warren Buffett said the 25% gain in the tax reforms are not yet factored into the corporate earnings. Sure there could be some minor consolidation, but Dow is headin to 50,000 because of tech - AI, IOT, Blockchain technology . If the market falls a bit, then I'm putting more money it, buy Low and hold 16% return is nothing - that's the sign of the start of a Bull market. you're looking at 1000%-5000% returns in cryptos, lol.


Was this post written in 1999? I see many of the basic finance 101 biasí markers on display.
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Old 01-14-2018, 01:34 PM   #8
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Congrats and it is always nice to add that second comma to the net worth line no matter how you count it. But as others have pointed out, this is not the new normal and to think otherwise is fool hardy.
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Old 01-14-2018, 01:46 PM   #9
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Congratulations on reaching this level!

Continue to keep the long term in mind even if a bear market hits in 2018. Our Cash+investments hit 800K in 2006, it went up a little further but at the bottom of the 2008-2009 recession it was down to close to $700K. We just stayed the course (with a LOT of patience and not listening to the herd that was running out of the market) and now it is much more than that.

If you are willing to expect potential bear markets but keep plowing forward, that is the key.
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Old 01-14-2018, 01:53 PM   #10
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Congratulations! I’m also optimistic about the US and world economy. I don’t think that’s foolhardy. Perhaps not having contingency funds or backup plans would be foolhardy.
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Old 01-14-2018, 01:57 PM   #11
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Congratulations!!
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Hit the $800,000 mark (Stock investments + cash only)
Old 01-14-2018, 02:12 PM   #12
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Hit the $800,000 mark (Stock investments + cash only)

Congrats! Stay the course and Retirement will be right around the corner.
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Old 01-18-2018, 07:07 PM   #13
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Thanks guys for the heads up. Also thanks to those who are being cautious
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Old 01-18-2018, 08:15 PM   #14
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Congrats cyber888! $800k is a great milestone to reach! I hope to be there in about 3 yrs. Personally I'm a bit of a minimalist and I feel I too can easily do a 35yr retirement on about $1.2MM with a paid for house and claiming social sec at 65. However, I may be cutting close in case there's a big unforeseen expenditure so I'll probably build in some cushion, hopefully, while I'm at the peak of my career so adding another couple of 100ks shouldn't take too long plus it shaves off another couple of years to rely on the retirement funds.
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Old 01-18-2018, 09:31 PM   #15
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Thanks guys for the heads up. Also thanks to those who are being cautious
I've been in the bull camp for quite a long time, i.e. since early 2009. I even penned a post on a thread here a day or two ago basically saying that I didn't think the (longer term) top was in yet.

Your post makes me want to revisit my "we've got a way to run" thesis. In fact, I think I will sell something tomorrow to appease the market gods (i.e. to lock in a gain).

Rule #1: Don't count your winnings until they actually happen.
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Old 01-19-2018, 05:44 AM   #16
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...because as Warren Buffett said the 25% gain in the tax reforms are not yet factored into the corporate earnings.
But they are pretty much factored in to current stock prices....unless you believe PEs of 25, 30, and 40 or more are perfectly ok.

It's also the case that many companies are not going to get a great benefit from tax reforms, as they weren't paying ridiculously high taxes in the first place. The politicians all spew about the corporate tax rate being 35%, but in actuality, none pay that much. Companies that will benefit the most are those which did not employ brilliant CPAs to find loopholes to claim lower tax rates. Go check out the last year end income statement for your favorite large cap company and what the effective tax rate was. I think you'll find that for most, it wasn't so high that the tax reforms will have a huge impact. Apple - 24%, Boeing - 12%, Google - 19%, Facebook - 18%, GE - 5%, Exxon - negative 5% (they received a tax refund of $400 million in 2016 even though they posted profit of $8 billion).
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Old 01-19-2018, 07:07 AM   #17
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But they are pretty much factored in to current stock prices....unless you believe PEs of 25, 30, and 40 or more are perfectly ok.

It's also the case that many companies are not going to get a great benefit from tax reforms, as they weren't paying ridiculously high taxes in the first place. The politicians all spew about the corporate tax rate being 35%, but in actuality, none pay that much. Companies that will benefit the most are those which did not employ brilliant CPAs to find loopholes to claim lower tax rates. Go check out the last year end income statement for your favorite large cap company and what the effective tax rate was. I think you'll find that for most, it wasn't so high that the tax reforms will have a huge impact. Apple - 24%, Boeing - 12%, Google - 19%, Facebook - 18%, GE - 5%, Exxon - negative 5% (they received a tax refund of $400 million in 2016 even though they posted profit of $8 billion).
While your statement is true, there are multiple aspects to the tax bill in addition to the reduced corporate rate:
1) Territorial system: Corporations will now be taxed on US profits, not world wide.
2) Repatriation: The tax law allows for a lower 15.5% (on cash and equivalents, 8.0% on non liquid assets vs the current 35%. In Apple's case alone this will result in a one time $38 billion payment for assets currently held overseas (and will free those assets to be deployed in the United States).
3) I thought the bill also included expensing of 5 year or under capital investment - but not sure if that made the final bill.

All of the above are stimulative and should have a positive impact on GDP growth (at least in the short term).
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Hit the $800,000 mark (Stock investments + cash only)
Old 01-22-2018, 02:03 PM   #18
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Hit the $800,000 mark (Stock investments + cash only)

Goldman Sach tells all high networth clients ($10 Million NW and up) to stay in stocks. Bull Market will continue.
https://finance.yahoo.com/news/goldm...123353880.html
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