Investing 102

[Bucketlist2012]

Originally Posted by Sieg

Just ran a conservative scenario in the Schwab's retirement planner without my wifes current income or retirement, factoring retirement age of 65, life expectancy of 80..........it's projecting a surplus of $439,000. Didn't factor inexpected emergencies, though there's other assets and revenue that aren't factored. I'll definitely sleep a little better tonight.

Congrats. Knowing the numbers is so important..

Yes, I never run my Wife's income or Social Security in my projections. Just me..

Also I never include my Home Equity. I do count it in my NET worth, but not for future living expenses..

That way I am excluding approx 300K of non liquid assets from my projection.
So we have that money for assisted living if ness.. later in life...or for whatever.

Seig, it really helps to run the numbers once a year. Also to calculate your NET worth to see where you are at..

Then once a year revisit to see if you are up or down...

[Blake Foster]

[QUOTE=solarguy09;393143]Congrats. Knowing the numbers is so important..



Also I never include my Home Equity. I do count it in my NET worth, but not for future living expenses..

That way I am excluding approx 300K of non liquid assets from my projection.


QUOTE]

I read an interesting quote went something like this
Customer to Advisor. My current house is worth 300,000(say)fully paid for. I only actually calculate it at 100,000 in value" why is that? " because I will have to live somewhere and if I figure when I retire I will down size and spend 200k then that leaves me 100k in assets to work with not the full 300k.
Something I never really thought of. In that context anyway. dDoesn't really flow with what is happening here but may add some light.

[CRCRFT78]

Just to get back on the Facebook IPO for a minute or two, would their IPO have a possible positive affect on the companies doing the underwriting? Just looking at the charts for Morgan Stanley, Goldman Sachs and JP Morgan I wouldn't think to buy due to their lack of performance but Im trying to think outside the box.

The current discussion on the solid market, steady eddy dividend payers is great, but I'm now looking at the gambles for those with a higher risk tolerance. I'm trying to disect all angles, sometimes you've got to take risks to reap rewards. Although it might not be for some, others will make that move. Whats your take on the possible positive affects it could have on other stocks or companies involved?

[96z28ss]

Facebook,

Greg you have stated before to keep things simple. You used your Apple visit to the mall senario,and it prompted you to look into it and purchase it. You have had a nice ride up.

Now wouldn't you use that same thinking in Facebook. Everyone but you (and a few) are on it. I'd say about 80% of the vendors on this message board are on it. Its another way of advertising. They currently generate income from advertising and social games.
Looking back at google as an example it started at under $100 its now $585
It does have its wild rides but how about the long term?

[GregWeld]

Originally Posted by 96z28ss

Facebook,

Greg you have stated before to keep things simple. You used your Apple visit to the mall senario,and it prompted you to look into it and purchase it. You have had a nice ride up.

Now wouldn't you use that same thinking in Facebook. Everyone but you (and a few) are on it. I'd say about 80% of the vendors on this message board are on it. Its another way of advertising. They currently generate income from advertising and social games.
Looking back at google as an example it started at under $100 its now $585
It does have its wild rides but how about the long term?

RE: FACEBOOK


I just left my local Schwab office.... where -- sorry to say -- I get some preferential treatment as a large account type customer... so after we do some "bidnezz"... we start talking about Faceybook and they'll allocate 100 shares to me -- and as over subscribed as it is now - I might get "50"...

Oversubscribed means -- more people want in than want to sell... So if Faceybook issues 100 shares total -- there's people lined up to buy 300 shares -- thus "oversubscribed".

My VP guy wants to buy it for his kids account.... but his take is -- he's going to wait for the first big drop...

So here's my "take" - which I've discussed above... it's gambling - for those that want to take the risk -- I say -- you're all adults -- JUST DO IT! Me? I'll see what it does and tip toe into it... and even tip toeing into it -- it will be a very very very small % of my investable funds. I'm not AGAINST investing in these -- it's more about "at what price" and how much. With "seasoning" (age) comes a certain outlook on life and I don't have to jump into the fray == I prefer standing on the outside and picking around the edges...


RE: APPLE


COMPLETELY DIFFERENT ANIMAL HERE! COMPLETELY!

Apple was a public company for a very long time -- that had it not been for Bill Gates bailing their sorry asses out - would have been long gone....

When I was seeing the line at the mall -- THE STOCK -- was not up (@ $85ish) so we had not yet seen the real rise yet. The STOCK was not in demand YET.... so I was EARLY.


FACEBOOK is going to come out of the gate in HIGH DEMAND... Which equates to a high price (given all the metrics of P/E and blah blah blah) so does it RISE from here or come back to earth? We just do not know. But it was, and is, a very good comparison Bob with your statement about "everyone" is using it and wants it!

[Bucketlist2012]

[QUOTE=killer69;393212]

Originally Posted by solarguy09

Congrats. Knowing the numbers is so important..



Also I never include my Home Equity. I do count it in my NET worth, but not for future living expenses..

That way I am excluding approx 300K of non liquid assets from my projection.


QUOTE]

I read an interesting quote went something like this
Customer to Advisor. My current house is worth 300,000(say)fully paid for. I only actually calculate it at 100,000 in value" why is that? " because I will have to live somewhere and if I figure when I retire I will down size and spend 200k then that leaves me 100k in assets to work with not the full 300k.
Something I never really thought of. In that context anyway. dDoesn't really flow with what is happening here but may add some light.

Excellent, just being more conservative...When my wife and I bought our REO at the bottom, we went with the larger home with more Value...

That leaves us with the downsizing option too.. My plan is to stay here or move to an equivalent home someday.. Or just downsize later in life..

Similar to you...Maybe the house is 350K, and the sole survivor, her or me, can use that money any way needed.. 200k home, or just assisted living..

I plan to die with money invested... That way i am never spending to the edge of my comfort range...

[Sieg]

Originally Posted by solarguy09

Congrats. Knowing the numbers is so important..

Yes, I never run my Wife's income or Social Security in my projections. Just me..

Also I never include my Home Equity. I do count it in my NET worth, but not for future living expenses..

That way I am excluding approx 300K of non liquid assets from my projection.
So we have that money for assisted living if ness.. later in life...or for whatever.

Seig, it really helps to run the numbers once a year. Also to calculate your NET worth to see where you are at..

Then once a year revisit to see if you are up or down...

Thanks you.

Regarding networth the only debt/liability we have is our home and it's $250K balance was refinanced two years ago on a 15 schedule so it will (should) be paid for the same time I hit age 65.

[Bucketlist2012]

Originally Posted by Sieg

Thanks you.

Regarding networth the only debt/liability we have is our home and it's $250K balance was refinanced two years ago on a 15 schedule so it will (should) be paid for the same time I hit age 65.

Very Nice...

I love this thread.... No really I do..

We can share and go over ideas and the different strategies we are using.

And some that are getting started will feed off our passion.

Well done Sieg..

To share, My only liability is a 4.5% fixed 30 year 150K balance( 330K value), everything else is assets , and they are in nimble, liquid, global Investments..

Mike V.

[ErikLS2]

This thread is moving too fast for me to even participate, lots of great info here. And Greg, what a great contribution you've made to a great many here.

Got to put in my 2 cents on Facebook, and you heard it here first, they are a short term fad soon to be replaced by the next short term fad. They are not Google, Microsoft or Apple who make products people have integrated into their daily lives. I know, Facebook is part of people's daily lives, but in an entertainment sense more than a practical use sense. I believe people are quite fickle when it comes to entertainment and can easily and quickly move onto the next hot thing. I heard recently, can't recall where, that there were more people leaving FB per month than joining. I believe usage on there has about peaked and will start to decline as people get bored with it. Anyone prone to get hooked by that type of thing probably already is and will eventually get bored with it. I would much rather own a piece of the companies that make the vehicle for getting on FB (and it's replacement), the cell phone makers and cell service providers. Websites and social media fad will come and go but the way people access those things will remain.

Anyway, this thread will certainly be still going when FB flops and I can then point everyone back a couple hundred pages and claim I called it.

I'm sure there's going to be some big short term bucks made on it though. Maybe I'll be one of those few shorting it after a huge upward run. (Gotta learn how to short stocks first though)

Sorry for the rant, just trying to contribute to the thought process of investing in my own corny way.

[ErikLS2]

Wanted to share two great websites for keeping track of all your financial stuff in one place, calculate net worth, etc.

http://www.yodlee.com/ymc_home.shtml

www.mint.com