Investing 102

[GregWeld]

Who needs me? You guys got it going on!!!



Bill et al....

So here's something everyone needs to give some thought to - in a funny backwards sort of way... about retirement. I know this -- because I'm living proof having been retired 20+ years already (I'm 58 now - and plan to live to be 300!)

I - being retired - want to see RAGING INFLATION.... and you hope that when you retire you'll have the same. Blasphemous you say! How stupid is that idea!!

Well.... let's think about it this way -- In retirement I should already own my house.... shouldn't be buying new cars as often - should maybe already have enough "toys" to carry me into my 70's... so what are my costs to live? Heat, Gas... phone.... food... property taxes and home maintenance... simple clothing... the trips I used to fly to I now have time to drive and enjoy...

So... if I could make 10% on my tax free muni bonds (more than double what I'm getting now on average!) my income would be FANTASTIC! Either I could have saved HALF what I needed and get to the same income -- or my income just took a giant jump... I can afford the "inflation" on prices of basics because I'm really not buying that much or that often!

If you want to see what this looks like -- plug in some wild numbers to the "retirement calculator" -- keeping your "required income" the same -- but the rate of return on your investments "high"... use 8 or 9% (unrealistic currently) rather than 4%.

Personally -- I'd love a return to the 80's when I could get 14% on a simple CD...

[Sieg]

Originally Posted by GregWeld

(I'm 58 now - and plan to live to be 300!)

My seat of the pants calculator had you funded to age 330.........but then you entered into an affair with Roger. He's quite talented and I've become concerned about your fiscal well-being.

[Bucketlist2012]

Originally Posted by GregWeld

Who needs me? You guys got it going on!!!



Bill et al....

So here's something everyone needs to give some thought to - in a funny backwards sort of way... about retirement. I know this -- because I'm living proof having been retired 20+ years already (I'm 58 now - and plan to live to be 300!)

I - being retired - want to see RAGING INFLATION.... and you hope that when you retire you'll have the same. Blasphemous you say! How stupid is that idea!!

Well.... let's think about it this way -- In retirement I should already own my house.... shouldn't be buying new cars as often - should maybe already have enough "toys" to carry me into my 70's... so what are my costs to live? Heat, Gas... phone.... food... property taxes and home maintenance... simple clothing... the trips I used to fly to I now have time to drive and enjoy...

So... if I could make 10% on my tax free muni bonds (more than double what I'm getting now on average!) my income would be FANTASTIC! Either I could have saved HALF what I needed and get to the same income -- or my income just took a giant jump... I can afford the "inflation" on prices of basics because I'm really not buying that much or that often!

If you want to see what this looks like -- plug in some wild numbers to the "retirement calculator" -- keeping your "required income" the same -- but the rate of return on your investments "high"... use 8 or 9% (unrealistic currently) rather than 4%.

Personally -- I'd love a return to the 80's when I could get 14% on a simple CD...

Oh man, that would be the ticket.... I would be my own King...Cash and no debt.....sweet...

You are right about the Inflation, but the regular investor needs to be making money on their money and low in consumer debt, with a fixed home loan in the 4% range...

If inflation, or when Inflation really takes off, I will be ready...I am deleveraged, and ready to rock.