Do you sometimes feel like the crew of the Starship Enterprise?
yellowkid
Posts: 5,486 ✭
Boldly going when none have gone before. I retired almost nine years ago, put my money in a diversified postfolio, and expected to be ready for almost anything. Luckily I paid little attention to the seers at Vanguard who said no gold, no Emerging Markets, no REITs. These along with my dividend payers and bonds have kept me afloat. What are the chances of retiring into the most volitaile financial market in history?????
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Got about half what I consider the minimum portfolio going in, so being careful, but researching possibilities.
Silver has possibilities, pallidium has got me wondering about its curve to offset the other pms.
I guess I don't have to have %100 of what I consider to be covered, as most won't have %5 of what they need in the next coming decades.
See a lot of my aged folks counting on a basic pension, not enough in the portfolio, and understanding modifying risk vs safety.
Retirement used to mean when you were old at 62. Hah, lately we realize that is not old and quite early and you should live another 25+ yrs. But in the coming future, most will be working till they drop. Fewer pensions, less folks prepping adequately, and not enough to cover things.
Medical... Just don't get sick. Country in debt and getting deeper. Dollar shakin.. Guess we'll have to collinize Canada or something..
Jersey boy; but I'm going to W. V. to retire in a modest small home on a 12 acre hill, with a garden, chickens, wife, ebay businesses, pms hidden in the well, and a shotgun to keep the yankees away when they flee the cities.. But it will be the government that will be my biggest worry, because they'll say, "you have some money, so we aren't giving you your earned SS " ;-)
Question: Run into any really big unexpected expenses that took a big piece of the pie earlier than expected.?
My risk with metals is reduced by the fact that my long debt free lifestyle enables me to live comfortably on just my retirement.
My advice to anyone desiring to be financially able to retire when the opportunity arises is to get out of debt first. A debt free lifestyle makes all the financial difference in the world. Most people who are eligible to retire but can't are enslaved to debt that forces them to continue drawing a full salary. High interest debt reduction should take priority over most investing.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
This reaffirms my belief that education and knowledge are paramount. Places like this forum are helpful as a sounding board, and taking an active role in your own finances is one of the best things you could do.
I used to do a very good job for my company, and yet I wouldn't apply the same level of diligence to my own personal finances. At one point, the lightbulb came on brightly and I started taking responsibility. Nothing magical, just some diligence.
I think you are doing what you need to do, and the results are self-evident. Watch out for the potholes.
I knew it would happen.
<< <i>My advice to anyone desiring to be financially able to retire when the opportunity arises is to get out of debt first. A debt free lifestyle makes all the financial difference in the world. Most people who are eligible to retire but can't are enslaved to debt that forces them to continue drawing a full salary. High interest debt reduction should take priority over most investing. >>
I appreciate the debt advice, and been reading about 'eliminating the money step'.
I'm still in the beginning of adding PMs to my portfolio and learning as I go. I've been inching in a percent or two
at a time, and still below the previous recommended levels, so got a bit to go. I'm using a split of previous money, and salary to create
the PM items, w 401k and IRA's in place for quite some time (but modifying the mix). I certainly know I need more balance with tangibles,
and things other than just emoney. Real stuff like some land in WV.
I'm unclear how no-tax on PMs is different than no-tax on 401k/IRA accounts along the way.
I understand we have gain obligations at the take out time.
Also still learning about how much is practical for Roth type investments or switchovers, to balance tax burden at the other end.
Was reading I need to count on about 8 years or more for that to be practical, right?
(Kirk: Scotty, beam me down some gold. They don't take cash here, esp for bail!)
<< <i>(Kirk: Scotty, beam me down some gold. They don't take cash here, esp for bail!) >>
That would be "Gold Pressed Latinum."
<< <i>
<< <i>My advice to anyone desiring to be financially able to retire when the opportunity arises is to get out of debt first. A debt free lifestyle makes all the financial difference in the world. Most people who are eligible to retire but can't are enslaved to debt that forces them to continue drawing a full salary. High interest debt reduction should take priority over most investing. >>
Me to!!!
I had 7 year left on my mortgage but decided to refinance to a 2.75% 5 year ARM which after adding some extra $$, will be paid off in3 1/2 years. Best part is I still have $$ for stacking!!!
<< <i>I used to do a very good job for my company, and yet I wouldn't apply the same level of diligence to my own personal finances. At one point, the lightbulb came on brightly and I started taking responsibility. Nothing magical, just some diligence. >>
Agreed. It has always puzzled me why so many people work so hard to make their money, but then make virtually no effort to ensure that their savings/investments are good ones. It's like pouring water into a colander. Most people prefer to just increase the water flow to retain the waterline inside it. Plugging the holes seems like the more obvious solution to me.
My father is very bad for this. He works very long hours and makes good money, but makes no effort to understand finances or investing. He basically just gives it all to the same financial manger he has used for years. Even when the stock market was great, his own returns weren't even that good. But he doesn't want to shop around for a second opinion on his finances. He did ask me once about gold a few months back, but really has no interest in buying any for himself. A few more negative quarters and I think he might come around though.
I have just started...
<< <i>My father is very bad for this. He works very long hours and makes good money, but makes no effort to understand finances or investing. He basically just gives it all to the same financial manger he has used for years. Even when the stock market was great, his own returns weren't even that good. But he doesn't want to shop around for a second opinion on his finances. He did ask me once about gold a few months back, but really has no interest in buying any for himself. A few more negative quarters and I think he might come around though. >>
I understand your dad.
I understand my profession and am good at it. Other aren't good at my profession.
The world of high finances, though, is a fun-house of acronyms, financial tools and contrivances coming and going like Higgs bosons, people with ties and spats claiming expertise and selling guidance. They who run those places have a profession that is different from mine. Making the money is my perview; preserving and enhancing the money is putatively theirs.
It's like anything else (say, the coin industry), where you bring the money you've made from a venue where you were the expert and knew what you were doing, into a jungle where people lurked who knew far more than you , who spoke in strange tongues, and who spent all their time creating complexity for the neophyte and assuring their advantage.
I have to acknowledge, the rigid and skeptical analysis required to assure your safety as you venture into this foreign land of wealth preservation is stimulating for some, but tedious for me, and I have to struggle to keep my eyes from glazing over.
Sometimes (like your dad), you hope to have established a personal relationship with a person who 1) is honest and 2) is competent. in exchange for some fee, and then but monitor the outcome rather than the sausage-making. I can understand how your father may be reluctant to jettison such a relationship even if his financial success with the man had been meager, and embark on waters on his own.
For me, I've perceived enough to abandon the froth of the stock market, to move toward real estate holdings, PMs and other assets, to rely on bonds and dividends from certain select companies (which are selected and monitored by my own trusted and hopefully trustworthy "professional"), and to try desperately to diversify.
And naturally, I've enjoyed the wisdom of many on this Board for guidance over time. Thank you all.
Here's a warning parable for coin collectors...
When I was working my way up the corporate ladder, I decided to get an MBA in Finance, because I wanted to know the "secrets". Well, the "secrets" are all on display every day in the Wall Street Journal and other venues. If you read, you broaden your understanding. If you don't take the time to learn, whether it is in a formal setting or and informal one, you will remain with the less-advantaged group.
There is no magic, but there is understanding and diligence. And of course, there are numerous ways to gamble. Sometimes, an educated guess is your best bet. Nothing is guaranteed. The Starship Enterprise usually performed admirably. It didn't always crash. I think it only had to be totally-rebuilt once. Or was it twice?
I knew it would happen.
Yes. The taxes on Social Security are very much higher than expected IF you have "too much" income (from 401's, IRA, or pensions). The 99% of the people I know, believe taxes are the same brackets in retirement as when they were working. Basically that's far from true. See for yourself - it is a complicated situation.
As for financial markets, it is hilarious to hear someone say the "most volatile financial market in history." I'm guessing the op doesn't have much sense of financial history. U.S. bonds are still in a 30 year long bull market. Gold and silver, 12 years of a historic bull market. That's two asset classes that have been pillars. U.S. stocks are nearing all time highs (measured by total market index). Most volatile? You gotta be kidding me? Any Vanguard style investor has done very well during the past decade, primarily due to the bull market in bonds. A good percentage does have some gold. Most have a relatively high percentage of foreign stocks, certainly higher than on this forum. On the Vanguard forum, one of the most popular threads is about the Permanent Portfolio which has a 25% allocation to gold (25% to bonds, stocks, CDs).
As I have often written, Chicken Little is always with us. Go back to each decade and there were doom and gloomers writing about the end of the U.S. economy, the end of U.S. economic strength, the end of U.S. military supremacy. Back in the late 60s, we were in Vietnam, 2% inflation was seen as a big problem, and that led to government price controls in the early 70s. Back in the 70s, we lose in Vietnam, Cold War is in full effect, there was high inflation (remember WIN Whip Inflation Now?), lines at gas stations, a 70% decline in the U.S. stock market. In the 80s, a big scare was the Japanese buying all the prime U.S. real estate and Japan out competing us. How is Japan doing today? There was also the 1987 stock market crash, a 40% decline in one month, which many doomers thought meant the end of the U.S. economy and a return the 1930s bread lines. In the 1990s there was a terrible bear market in precious metals. There was a constant drum beat that the budget deficit and trade deficits spelled doom, so much so that Ross Perot ran for President primarily on those two issues. How nice would it be to return to 1990s era budget deficits today?
Yes, at some point, the U.S. will lose its #1 spot. Yes, even at some point USA will be erased off world maps and the dollar will go to zero. But as the Klingons might say, "today is not that day."
Some would say today is different. Like Star Trek scripts, it is always a little bit different. However, some things are predictable, some things never change, both in Star Trek and the financial markets. Live Long and Prosper.
good post RT.
Some folks lament the passing of "the good old days" and look back to earlier times with fond nostalgia, and now think we live in "the bad new days"
The thing is: when viewed from the future, THESE are "the good old days" and THOSE will be the bad new days.
That's how it always is, and always has been, throughout history. Most live for the past, or the future. Very few people really value the present time and make the most of it.
Liberty: Parent of Science & Industry
The media has a massive influence. You gots to think for yerself.
I knew it would happen.
I knew it would happen.
<< <i>Yes, at some point, the U.S. will lose its #1 spot. Yes, even at some point USA will be erased off world maps and the dollar will go to zero. But as the Klingons might say, "today is not that day." >>
I think they said, today is a good day to die" more oftain.
As for IRA's and Deferd Comp plans (there are many more than 401k's), I think wat happens this November will give direction on if they are safe or not. The world is changing and when it settles, thing may be fine. On the other hand, their is the move for the US to be more like the EU and IMOP, that is not good.
I nominate this comment for "Comment of the Year" to date
<< <i>Very few people really value the present time and make the most of it.
I nominate this comment for "Comment of the Year" to date >>
Apprehension Reigns!
<< <i>I am a fan of Star Trek. As fans know there were six TV series and eleven movies, with the original series running for three years (1966 to 1969). Each crew faced its own set of challenges, and had its own set of characters.
As for financial markets, it is hilarious to hear someone say the "most volatile financial market in history." I'm guessing the op doesn't have much sense of financial history. U.S. bonds are still in a 30 year long bull market. Gold and silver, 12 years of a historic bull market. That's two asset classes that have been pillars. U.S. stocks are nearing all time highs (measured by total market index). Most volatile? You gotta be kidding me? Any Vanguard style investor has done very well during the past decade, primarily due to the bull market in bonds. A good percentage does have some gold. Most have a relatively high percentage of foreign stocks, certainly higher than on this forum. On the Vanguard forum, one of the most popular threads is about the Permanent Portfolio which has a 25% allocation to gold (25% to bonds, stocks, CDs).
I wasn't referring directly to the rate of return of various investments during this period, and it was perhaps a bit of hyperbole, but name a time when we came as close to financial disaster as we did after the Lehman Fund broke the buck, 1929 worse? Some say no. Panic of 1837? Losing over a quarter of your net worth in a very short time, IMHO, is an indication of volatility.
<< <i>Very few people really value the present time and make the most of it.
I nominate this comment for "Comment of the Year" to date >>
These are the " good old days."