BTW --- This thread isn't about "me"..... I'm already set. What I'm trying to do is to get those that aren't - to start thinking about how they might go about getting there!
Are you willing to trade your retirement years "in style" for a new car you don't really need - but just "want" - now? Or that bigger house you don't really need? Or the expensive trip to Hawaii over the moderate trip to So Cal?
The more I hear people say "well... I can afford it".... because they have higher incomes... the more I question them and say -- OKAY.... do you still want to be able to live this way when you have no job (retired)? And how much money do you think that will take?
Right now -- it takes a million bucks invested to "net" about 40 grand a year in income... So if you're making 100K a year - you now need TWO MILLION in the bank!
I just had a discussion with the buddy that handles my bond portfolio... I have a years worth (due 2012) rolling over in the next 6 months...so we were discussing what kinds of return I can expect. Ya know what? We're going to roll this years into bonds due 2019 and MAYBE I'll get 3% tax free.... Do the math -- that's 30 grand a year net off ONE MILLION BUCKS invested. Sucks but that's what it is! If you want super safe instead of A rated bonds - you can drop to well under 2%!
Now... it won't stay that way forever... but in order to get my money back I MUST hold until maturity... so that's dead money until 2019 folks. Think about that! In my book - that's a long time! Next years bonds will roll into 2020's and so on. I hope rates don't go DOWN between now and then!
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