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Old 10-20-2009, 11:42 AM
 
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Quote:
Originally Posted by mathjak107 View Post
of course the big question is if your not drawing down your nest egg and in fact its growing by more then inflation why bother taking on anymore risk then you have to. why keep playing the game if you already won ?

if i didnt need my nest egg to live on id buy one big load of cd's and call it a day
Those are words of wisdom. Cut your risks and secure your projections. The only wild card is health care and can you have enough?
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Old 10-20-2009, 12:31 PM
 
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Although this is for near-retirees, it's a good column about 'buckets':

Buy and hold? No, near-retirees should try money buckets | News for Dallas, Texas | Dallas Morning News | Will Deener | Business Columnist | Dallas Morning News (http://www.dallasnews.com/sharedcontent/dws/bus/columnists/wdeener/stories/DN-deenercol_03bus.ART.State.Edition1.3cf1d37.html - broken link)
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Old 10-20-2009, 12:33 PM
 
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I use ray lucias system... it works well for us
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Old 10-20-2009, 12:38 PM
 
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Quote:
Originally Posted by mathjak107 View Post
of course the big question is if your not drawing down your nest egg and in fact its growing by more then inflation why bother taking on anymore risk then you have to. why keep playing the game if you already won ?

if i didnt need my nest egg to live on id buy one big load of cd's and call it a day

But the majority would succumb to greed and not do that.

That is why the successful business man who is getting rich by owning 10 of them want 20.

Why the person with $10 million tries to make $20 million

Greed !
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Old 10-20-2009, 12:57 PM
 
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well greed can be good sometimes when controlled properly , it makes people strive to do better, earn more and grow bigger companies. but not in retirement, i know my investing goals changed. for me its no longer about growing richer, its now all about not growing poorer thru decades of retirement and inflaton. i down sized my risk going from a growth investor all my life to more of a capital preservation and income investor for the last few years.

as i reached my savings goals i could cut back the risk
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Old 10-20-2009, 01:02 PM
 
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Quote:
Originally Posted by marmac View Post
But the majority would succumb to greed and not do that.

That is why the successful business man who is getting rich by owning 10 of them want 20.

Why the person with $10 million tries to make $20 million

Greed !
Thats what this thread is about how much risk and what type of investments when you reach that point. The average/majority person isn't going to reach that point.
If you accept reaching that point that means you are content to plan your retirement based on what you have and are not feeling the need for more more more to spend. Thus that is just the opposite of greed. You are trying to build wealth and not just draw down wealth.
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Old 10-20-2009, 01:12 PM
 
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truth is most investors can tolerate alot less risk then they think they can and thats true at any age. thats why those dopey questionaires you get when you open an investment account are silly.

they try to mix age and investment risk tolerence together and you really cant.

as we saw there were 30 year olds who were flagged by these questionaires as being aggressive investors but they bailed out in the drop taking huge losses. those questionaires are only to protect the brokerage, they have nothing in common with your own bail out tolerance.
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Old 10-22-2009, 01:01 PM
 
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well...as one who has earned and enjoyed most of wealth , I can understand where you are coming from.
As I have grown older, I have planned for a transfer and maintaining the estate for the kids and grands. anyone can do this through the use of trusts...google that term.
all of you assets can be set inside a trust, allocations made, income dispersed, and investments made. All of these assets can be transferred tax free to your beneficiaries.
cd's ..nope not for me. that same money can be put into a single premiumlife policy for the grands and get an immediate 50-120 % return . 50k buys 125k ..use this to transfer to the kids, charities, etc.
the home goes into a trust
the business if you have one goes into another trust.
YOU, me, become dependents of the trusts. which is fine with me.

the market has made a 50% bounce from the bottom and is due for some corrections. the 1080 level was my estimated top for now...with a retreat back down to the 880 level or even lower. So , keep a close watch on the stocks.

I posted on my blog that the sp would eventually break to the 680 level..it bottomed at 676 or so . interesting..

the most important investment you can make is in yourself..and your health.
without good health, the rest of it is not that important.

just my opinion.
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Old 10-22-2009, 01:16 PM
 
71,593 posts, read 71,751,865 times
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i agree with every thing you posted, im just not a fan of equity linked annuties as a proxy for stock investments.

i myself create my own using a cd and stock options.. but its really just a cd on steriods for an extra point or so. certainly not a replacement for investing in equities...

life insurance has tremendous value for passing wealth and one of my things to do is study up on the ideas of ed slott the master of protecting and passing wealth...
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Old 10-22-2009, 02:55 PM
 
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Mr. Slott says to spend (take 401K distributions before 70 1/2 even if you dont' need them?) and buy the insurance in order to leave money to your heirs and avoid estate taxes, correct?
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