Critical Mass - Care and Feeding For Once Attained
- R_Lewis
- Rande
- Rande
- Happy
- Rande
- R_Lewis
- tele
- mitelo
- tele
- mitelo
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» Happy - 1979/1980 was a period when I hit a seven bagger with 50% of my
1979/1980 was a period when I hit a seven bagger with 50% of my assets in gold stocks. I remember one stock, SGOLY, that I paid $9 a share for in 1979, paid a $12 dividend in 1980.I also remember the branch manager of Bank of America on Union Street in San Francisco telling me I was the first person in two years, who had taken out a home mortgage at his branch. Because I was buying three new foreclosed condos from the bank, I got a rate of 13 7/8%. The regular rate was 17%.
-- posted by Happy
» Rande - Re: 1979/1980 was a period when I hit a seven bagger with 50% of
In response to message posted by Happy:
Norm,
My pride and joy in 1980 was a 30-year fixed rate mortgage at 9.25% that I had locked in 1978. Little did I know that one day 9.25% would seem really high. (Currently sitting on a 30-year fixed jumbo at 6.875% that I locked in Jan. of 1994.)
-- posted by Rande
» tele - Have Your Income Needs Taken Care Of
The town where I live has a lot of rich people, many of them young retirees. They've all made their money in different ways, but the ones I've talked to about this almost always say the same thing. Have at least twice your income requirement in fixed income. Then you can invest in stocks and not worry about what the market is doing. This might not have been good advice in 1980 where the best thing would have been 100 pct stocks especially 100 pct NASDAQ 100 equivalent vehicle, but just imagine the new retiree with critical mass at the beginning of 2000 who followed that path. They might have to go back to work! Stocks may be best over the long run, but if you start out your retirement during a bad period for stocks, and that's where your money is, you may have a tough road ahead.-- posted by tele
» mitelo - Re: Have Your Income Needs Taken Care Of
In response to message posted by tele:"Have at least twice your income needs in fixed income."
tele,
I don't understand what that means. Wouldn't you want the income to be close to your needs rather than what was invested in fixed vehicles? Wouldn't this all depend on the rate of return?
I am wrestling with this very issue. Actually, I guess we all do or will eventually.
-- posted by mitelo
» tele - Re: Re: Have Your Income Needs Taken Care Of
In response to message posted by mitelo:I didn't make that very clear. What I meant to say was have enough in fixed income ie bonds to throw off twice your required income. If you need 50K have your fixed income throw off 100K and invest the rest as you see fit. This may not be practical for most of us, but it probably assures staying in critical mass.
-- posted by tele
» mitelo - Re: Have Your Income Needs Taken Care Of
In response to message posted by tele:I agree. That would be a great situation if inflation behaved extremely well. DCA into an index with any excess income over needs would be a reachable goal for more of us.
The "twice the income needed" approach seems a little hard to hope for. I am probably only two or three million short.
Thanks for your input.
-- posted by mitelo
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