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Old 02-27-2015, 09:53 PM
 
2,037 posts, read 1,945,753 times
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I think he likes expressing worries just so he can talk about his million dollars.
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Old 02-27-2015, 11:07 PM
 
Location: USA
271 posts, read 314,441 times
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Quote:
Originally Posted by Loudmouth View Post

He keeps saying, "this is real money, not paper losses
Yep it is real money.

He should ask himself if I had no money at all, just my social security check to live on
and I came into a million dollars this morning
Would I invest this windfall in the same way?

He my feel differently about it.
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Old 02-28-2015, 05:22 AM
 
199 posts, read 452,345 times
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The stock market is not the best choice for retired people, not enough time to to recoup a major bear market. He needs to be in safer investments and no I don't like annuities.
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Old 02-28-2015, 05:28 AM
 
71,478 posts, read 71,652,652 times
Reputation: 49068
that is 100% false. without stating at what withdrawal rate you are talking not using equities or enough equities has seen more retirements fail because of that fact.

that statement is based more on myth and misinformation than facts and data.

even at 65 a retiree has long term money they will not eat with for 30 years . we have never had even a 15 year period where you couldn't sell some equities at a profit .

in fact even if a retiree had the stomach to go 100% equities as in a diversified mutual fund , looking at the rolling 30 year time frames since 1926 , only 2 time frames would have run out of money before 30 years even at 100% equities and spending down at losses. that is a 98% success rate .

not using equities has failed 65% of the time trying to draw 4% inflation adjusted and most of that was during bond bull markets.


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Old 02-28-2015, 05:41 AM
 
Location: Mount Airy, Maryland
10,459 posts, read 5,920,270 times
Reputation: 16151
Please pay attention to the figures mathjak has posted. Not being in stocks really sets a person up to run out of money, the facts don't lie.
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Old 02-28-2015, 05:43 AM
 
Location: Mount Airy, Maryland
10,459 posts, read 5,920,270 times
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Quote:
Originally Posted by jghorton View Post

I've structured our finances to assure a comfortable income stream ...and let my account managers take care of the rest. As long as the bottom line shows 8-10% annual growth, I don't worry about the details. - To me, quality of life is more important than squeezing every possible nickle out of our retirement investments
.
How are you set up where you can count on an annual 8-10% return?
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Old 02-28-2015, 08:18 AM
 
71,478 posts, read 71,652,652 times
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yeah get me in on that deal too. 8-10% going forward is awfully optomistic .
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Old 02-28-2015, 10:32 AM
 
Location: Florida -
8,760 posts, read 10,832,098 times
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Quote:
Originally Posted by DaveinMtAiry View Post
How are you set up where you can count on an annual 8-10% return?
It's a relatively conservative WF equity management package that has produced 10% annually for the past 7-years after management fees (about 1.5%). Of course, I realize that it's not indefinitely guaranteed, but, other than checking it periodically to verify that I'm on-track for at least an 8% annual ROI, I keep my hands off -- Overall, we maintain a balance between 4-'buckets: Pension/SS income, Property, Annuity and Equities.
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Old 02-28-2015, 10:48 AM
 
71,478 posts, read 71,652,652 times
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well if you belive jack bogle and others :

dividends and interest rates are tied together .

dividends have always represented 1/3 of the markets gains so with the s&p dividends at 2% and the 10 year at 2% while cash is at zero at best the average over the next 7 to 10 years may be in the 6% range and that is before inflation.

right now bonds are at zero real return , dividends on the s&p 500 are zero and cash is negative and stock valuations are high.

pesronally i rather set my sights lower and be nicely surprised if we perform normal or better. counting on things the other way round may be a disapointment..
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Old 02-28-2015, 03:43 PM
 
Location: Wisconsin
21,534 posts, read 43,972,276 times
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Quote:
Originally Posted by mathjak107 View Post
at best the average over the next 7 to 10 years may be in the 6% range and that is before inflation.
I just got a newsletter from TRP saying essentially the same thing - average 5-6% return in equities over the next decade.
Quote:
It's time for investors to recalibrate their long-term expectations.

If U.S. stocks return 5% or 6% a year over the next decade, it would be a great outcome."

Bill Stromberg, TRP Head of Equity.

T. Rowe Price Report: investment outlook and commentary on financial topics
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