Investing 102

[WSSix]

Good info! I have no intention of taking any "profit" out of my accounts until I retire. Even then, I'm only going to take what I need and keep the rest invested. I look at it as a continuation of living below my means.

[GregWeld]

Originally Posted by WSSix

Good info! I have no intention of taking any "profit" out of my accounts until I retire. Even then, I'm only going to take what I need and keep the rest invested. I look at it as a continuation of living below my means.

I must have told a 1000 people -- that retirement isn't how much money you have it's about what you need -- so keeping overhead low is a great thing. Not many folks get to just retire and do whatever they want to.

The part most folks don't calculate is how much they can MAKE off their retirement nest egg... and in normal times -- it takes a million bucks to produce 50K in income.... Then you factor in the "4% rule" which says you can take 4% of your principal out per year... so now we're up to 90 grand and that's if you have a million bucks put away.

90 grand sounds like a lot --- but my guess is the amount people are making per year now -- sounded like a lot when they were in high school. So if we add 25 years to retirement --- and then plan to live 25 years AFTER retirement -- that's 50 years of inflation to account for.

Take your income now -- and compound 3% per year on it -- and see how that works out.


50K now -- needs to be 104,688K 25 years from now with that 3% interest rate! So that million bucks is just about what you're going to need. Making 150K a year now?? Ya need 3MM!!

Wanna live like you're rich?? 20MM

[GregWeld]

BTW --- Somebody was talking about paying their mortgage off early etc...



This calculation website has just about anything you can calc!! Including what it takes to pay off your mortgage early etc... you just fill in the amounts and press the "easy" button.


http://www.calculator.net/mortgage-p...l=500&x=55&y=8

[GregWeld]

Good article about Charlie Munger (Berkshire Hathaway === AKA Warren Buffet)...


http://seekingalpha.com/article/1263...g_income&ifp=0

[GregWeld]

I know that many of you probably bought McDonalds a few months ago - perhaps near it's high of around 100... and then watched as it died the death of a 1000 cuts and drifted down to 85ish... and you were probably kicking yourselves!


What I want to point out here is that while you were busy whining... you should have been adding to the position (I know most can't be following this kind of stuff as the funds just aren't there YET)... because here it is back near it's high... a nice "stealth rally" in the name.

The other thing I want to point out is --- TIME... all it took was a little time and boom.... back to where it was. No need to get all nervous and sell --- (the old buy high and sell low trick). In the meantime you were collecting that dividend and hopefully that was being re-invested at these lower prices.

A PERFECT example of how this all should work!

[toy71camaro]

Originally Posted by GregWeld

I know that many of you probably bought McDonalds a few months ago - perhaps near it's high of around 100... and then watched as it died the death of a 1000 cuts and drifted down to 85ish... and you were probably kicking yourselves!


What I want to point out here is that while you were busy whining... you should have been adding to the position (I know most can't be following this kind of stuff as the funds just aren't there YET)... because here it is back near it's high... a nice "stealth rally" in the name.

The other thing I want to point out is --- TIME... all it took was a little time and boom.... back to where it was. No need to get all nervous and sell --- (the old buy high and sell low trick). In the meantime you were collecting that dividend and hopefully that was being re-invested at these lower prices.

A PERFECT example of how this all should work!

I happened to be one of those people.. lol. i wasnt worried though. but i was able to add a little bit to my position with some extra funds. I think we had discussed that here before i made the additional purchase.

Also, after completely restructuring my 401k into funds *I* researched and picked (rather than just throwing darts at, lol). I'm all back in the green again by a couple %. So the little man on wall street went and found someone else to bug. heheh

[GregWeld]

Albert!!! You are DA MAN! buddy!

So easy a caveman could do it!!

[96z28ss]

I bought some MCD at $98 and I sold some of my NLY and bought some mcd at $88

[GregWeld]

Originally Posted by 96z28ss

I bought some MCD at $98 and I sold some of my NLY and bought some mcd at $88

[96z28ss]

I sold the rest of my NLY last week and added to my NNN.