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Old 01-01-2016, 12:56 PM
 
Location: Colorado Springs
4,830 posts, read 4,944,472 times
Reputation: 17289

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Investing is easy. Just buy the ones going up.

Amazon went from 306 to 675 during 2015.
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Old 01-01-2016, 02:43 PM
 
Location: SW Florida
9,743 posts, read 7,022,649 times
Reputation: 14219
Quote:
Originally Posted by eok View Post
Joe sixpack may buy a certain number of sixpacks per week. When he retires, he might buy that many per month. Does that make him a loser? People slow down when they retire. A day is like a few hours. They buy as much stuff per month as they used to buy per week, and it still seems like the same amount, because time goes by at a different rate.

Being a miser is not usually part of a plan. It's an attitude. That you don't need to be buying so much stuff, because you're just as happy without it. And you do need to be shopping around more, and pondering for months things you might buy, which a non-miser is more likely to buy on the spur of the moment. There is nothing about being a miser that makes people unhappy.

Some people seem born to be unhappy, and are far more likely to overspend. Their closets are full of clothes they hate, because they only liked them when they bought them on the spur of the moment. Their houses are cluttered with furniture, and they hate all of it. They hate their vehicles, their gardens, their trees, and often even their pets. They would be much better off as misers, spending more time pondering things, doing things that don't cost money, and shopping for fun, without actually buying stuff.
I think I must be a miser. It's second nature to me, as a result, I believe, of having to squeeze every available dollar for much of my life to make ends meet, meet financial and other obligations, not incurring excess debt and knowing that if I failed it was sink or swim. I wasn't unhappy at all, just knew I had to live within my means, and learned not to crave what I could not afford, or to be envious of others who had more than I did.

So we managed whatever we had well, paid our obligations and ourselves first (saving what we could), and splurged when we found something worthwhile doing so, and knew it wouldn't leave us in a big hole if we did splurge.

It's a mentality we still maintain to this day, in retirement. We live simply, have no debt, and splurge when we really want to, even though it's still second nature to look for those bargains.
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Old 01-01-2016, 02:56 PM
 
Location: Nescopeck, Penna. (birthplace)
12,351 posts, read 7,498,921 times
Reputation: 15950
Conservative stocks in stable consumer-goods industries usually hold their worth (most, in fact, usually increase in value, even after accounting for inflation, but slowly) and the same is true of the dividends they pay. And those who are still concerned about a single company "tanking" can go to a no-load mutual fund.

And there's also the possibility of "poor man's real estate"; aging owners of a family-sized house in a stable neighborhood can convert a part of the property for rentals.

The old maxim that "the greater the risk, the greater the reward - and vice-versa" still holds true; and like most people who've been playing the game, I've had a clunker or two (most notably, Lucent back in the late Nineties) But the tax system is set up both to soften the blow of the occasional mistake, and to reward those who play for the long run.

It beats being part of the clientele of the local political hacks.
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Old 01-01-2016, 05:05 PM
 
29,764 posts, read 34,851,819 times
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Perhaps the real current retirement is the search for yield. Saving is only part of the equation. ROI is the meat on the potatoes. MJ how much of your wealth is principle v ROI and how much of pension benefits are ROI s lot,
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Old 01-01-2016, 05:09 PM
 
71,464 posts, read 71,652,652 times
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only 15% of our current income is pension . 85% is all portfolio . this being our first year was mostly principal since returns sucked and we were up about 1% overall.

once ss kicks in we will be about 45-50% portfolio dependent
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Old 01-01-2016, 07:54 PM
 
29,764 posts, read 34,851,819 times
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Quote:
Originally Posted by mathjak107 View Post
only 15% of our current income is pension . 85% is all portfolio . this being our first year was mostly principal since returns sucked and we were up about 1% overall.

once ss kicks in we will be about 45-50% portfolio dependent
What I was asking was not spending but of your total how much was from contributions and how much from investment returns? If you have 3 million what part of it was contributions over the years and what amount was ROI compounded on those contributions. Pension funds tend to assume a 7-8 percent historic rate. Moving forward that is questionable etc with individual savings.
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Old 01-01-2016, 08:53 PM
 
2,677 posts, read 1,069,237 times
Reputation: 5167
I lost all my savings and employability due to an illness that persists today. You never know when you will need some kind of social assistance and thank God my country has great supports.
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Old 01-01-2016, 09:30 PM
 
Location: Cochise county, AZ
4,960 posts, read 3,451,255 times
Reputation: 10475
May God continue to be with you Kittie.

The same happened to me, although mine was a car accident. God does take care of his children.
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Old 01-02-2016, 01:48 AM
 
71,464 posts, read 71,652,652 times
Reputation: 49027
Quote:
Originally Posted by TuborgP View Post
What I was asking was not spending but of your total how much was from contributions and how much from investment returns? If you have 3 million what part of it was contributions over the years and what amount was ROI compounded on those contributions. Pension funds tend to assume a 7-8 percent historic rate. Moving forward that is questionable etc with individual savings.
i could never even guess .
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Old 01-02-2016, 02:09 AM
 
6,353 posts, read 5,154,974 times
Reputation: 8527
Quote:
Originally Posted by ohio_peasant View Post
Zero percent annual return on a billion dollars is still zero!
No, actually if you earn 0% on a billion dollars, you still have a billion dollars.

The most important return is the return of capital, not the return on capital. How much you save is much more important than the investment return, unless you have decades to build wealth - and, even then, a great return on a small investment balance is still small.
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