Markets still falling like whoa

[Cheeseweasel 26439]

5 minutes ago, B00M said:

Is there a joke here I'm missing? Are these real funds? 

No, my shitty memory. Should have looked them up. 

Fidelity Large Cap Growth (FLGEX)

Fidelity Total Stock Market (FSKAX)

[TwiceHorn 32079]

FLPSX has done me good.  I suppose it's a little risky/volatile, but over the longer haul, it puts out.

[TwiceHorn 32079]

The other thing that's stupid about that withdrawal rate is that you dont need 100k or 200k (not including SS for however long that lasts), for probably the last 5-10 years of retirement.  You won't be doing much that costs a lot, except paying for that assisted living/nursing home.

[Cheeseweasel 26439]

8 minutes ago, TwiceHorn said:

The other thing that's stupid about that withdrawal rate is that you dont need 100k or 200k (not including SS for however long that lasts), for probably the last 5-10 years of retirement.  You won't be doing much that costs a lot, except paying for that assisted living/nursing home.

You don't know how much blow/hookers are in my budget at age 85.

[4thgenhorn 42]

6 minutes ago, Cheeseweasel said:

You don't know how much blow/hookers are in my budget at age 85.

With a balance of $8M, I hope they’d be the majority of the budget. 
 

Thanks for posting the most ridiculous academic paper I’ve seen in a while. Very small percent of peeps will hit that number and very small percent can live sub $40k. Guess 99% of peeps will eat dog food in retirement and ration their pills. 

[Cheeseweasel 26439]

I'm going to write a book called "How to live on only 8 million dollars". I'm going to sell it for $1 and sell 8 million copies. Boom. Rich.

Edited August 20, 2020 by Cheeseweasel
Fuck my book!

[52-80 19377]

17 minutes ago, Cheeseweasel said:

I'm going to write a book called "How to live on only 8 million dollars". I'm going to sell it for $1 and sell 8 million copies. Boom. Rich.

Poor dad, Poorer dad.

[Cheeseweasel 26439]

Just now, 52-80 said:

Poor dad, Poorer dad.

The 8 Millionaire Next Door.

[B00M 6734]

17 minutes ago, Cheeseweasel said:

I'm going to write a book called "How to live on only 8 million dollars". I'm going to sell it for $1 and sell 8 million copies. Boom. Rich.

If it has a wet hole so people can fuck it while they read it, you might be able to sell 8 million copies of it.

[Cheeseweasel 26439]

Just now, B00M said:

If it has a wet hole so people can fuck it while they read it, you might be able to sell 8 million copies of it.

Stop stealing my ideas.

[Fudge Nuggets 19455]

The last payment I make before I die better bounce. 

[Cheeseweasel 26439]

6 minutes ago, Fudge Nuggets said:

The last payment I make before I die better bounce. 

This guy fucks...

 

...his kids inheritance 

[Okie State 3889]

I read articles by that Financial Samurai guy every now and then. He has some good advice, but a lot of it is like that one posted above. I guess it's good to get people thinking about it, but the vast majority will retire with basically nothing, let alone $8MM+.

[Cheeseweasel 26439]

1 minute ago, Okie State said:

I read articles by that Financial Samurai guy every now and then. He has some good advice, but a lot of it is like that one posted above. I guess it's good to get people thinking about it, but the vast majority will retire with basically nothing, let alone $8MM+.

Sounds like he's trying to get clicks by drawing attention to the occasional stupid idea.

[Okie State 3889]

Sounds like he's trying to get clicks by drawing attention to the occasional stupid idea.

Yeah I think he is just very aggressive which is fine, but it's not realistic for most. I've definitely ramped up our savings significantly in recent years and am in a much better position than most, but still think most of his ideas are unattainable.

[Superhero 9022]

17 minutes ago, Okie State said:

25 minutes ago, Cheeseweasel said:

Sounds like he's trying to get clicks by drawing attention to the occasional stupid idea.

Yeah I think he is just very aggressive which is fine, but it's not realistic for most. I've definitely ramped up our savings significantly in recent years and am in a much better position than most, but still think most of his ideas are unattainable.

Yeah, I don't see the price of meth dropping anytime soon in OK.

[Fudge Nuggets 19455]

42 minutes ago, Cheeseweasel said:

This guy fucks...

 

...his kids inheritance 

Any money my parents leave is going straight to them since I don’t need it.
 

I’ve pretty much told the kids I will get them through college debt free and after that they’re on their own (that gives them a big leg up on most of their peers).  Plan accordingly. 

[Superhero 9022]

22 minutes ago, Fudge Nuggets said:

Any money my parents leave is going straight to them since I don’t need it.
 

I’ve pretty much told the kids I will get them through college debt free and after that they’re on their own (that gives them a big leg up on most of their peers).  Plan accordingly. 

That's what my parents did for me as well - they paid for college then told me I'm on my own from then on out.

 

But they slipped a whole lot of money my way since then - grad school tuition (which I invested instead of spending it); money to help with our down payment (which we paid back).

I'm managing a part of their retirement savings that was collecting dust in CDs. They haven't explicitly said I get to keep it after they pass, but they probably won't need it. 

[Sbbruin 22143]

1 hour ago, Fudge Nuggets said:

The last payment I make before I die better bounce. 

My Dad always said his last check was going to be to the undertaker, and that he hoped it bounced.  Of course, that didn't happen and he left a bit to us.  But there were 5 of us so my grubby bro and sis's got their mitts on their share, so 5 ways was a nice little bit of little.  Which is fine.  Glad he spent it.

[Sbbruin 22143]

4 hours ago, DaysOff said:

That's the dumbest shit I've read in awhile. 8M in the bank to live on 40k a year.

Yeah, that shit is all kinds of fucked up.  My cost of living with 2 teens in private school, not to mention a whole host of other shit, is set to peak in 5-10 years, then it should drop precipitously.  I won't need anywhere near what I earn now in retirement.  I'm gonna buy a small place near the beach (and near a harbor), with a modest boat, and I'm fine.  I'm gonna be a 70 yo version of this.

[CooterBrown 18288]

This guy fucks...
 
...his kids inheritance 

Hopefully by the time I kick it, my kids are well on their own way to wealthy. Kids don’t need shit from their parents.

[Okie State 3889]

My in-laws told my wife that we're in charge of their assets should anything happen to them. Apparently they trust me to manage and distribute it more than any of their other children. They're spending it right now though which is good. They earned it and they should enjoy it.

[Incredulity 11876]

2 hours ago, Cheeseweasel said:

This guy fucks...

 

...his kids inheritance 

Trust fund kids suck anyway.

They need to earn it to appreciate it.

[washparkhorn 9973]

4 minutes ago, Incredulity said:

They need to earn it to appreciate it.

A lot of wisdom in that thought. It is a sticky wicket in economic circles: https://www.federalreserve.gov/econres/notes/feds-notes/how-does-intergenerational-wealth-transmission-affect-wealth-concentration-20180601.htm

Quote

Wealth concentration is high and rising in the US, reigniting an old debate within economics about the role that intergenerational wealth transmission plays in understanding savings and wealth accumulation.1 One view is that observed wealth holdings at any point in time are almost entirely attributable to lifetime saving that is unconnected to family wealth or support, which implies that intergenerational wealth transmission is probably not particularly important for explaining wealth concentration. An alternative view is that wealthy dynastic families hold a substantial share of aggregate wealth that is systematically passed from old to young, either through direct transfers in the form of inheritances and financial gifts, or more indirect channels such as the provision of education or other opportunities that lead to future wealth accumulation.2 In this note, we seek to establish the role of intergenerational wealth transmission by using the Federal Reserve Board's Survey of Consumer Finances (SCF), which contains extensive information about household balance sheets, intergenerational transfers made and received, and demographic and socioeconomic characteristics of respondents.3

Direct intergenerational transfers of cash and assets--in the form of inheritances and gifts--are particularly well captured in the SCF data. We show that the size distribution of such direct transfers is highly skewed, and that inheritance and gift recipients tend to be wealthier, higher-income and more educated that the average person in the economy, resulting in highly concentrated flows of intergenerational transfers. We then examine the extent to which direct transfers affect the concentration of wealth.

Other forms of wealth transmission are more difficult to quantify, although the SCF does contain questions that shed light on some of these channels. Investment in education and inclusion in lucrative family businesses are two examples of indirect ways in which wealthy families set their children up for future financial success. Additional wealth transmission channels derive from changes in consumption or labor supply choices due to the receipt or the prospect of future receipt of a substantial gift or inheritance. While some of these behavioral effects could possibly attenuate the effect of intergenerational transfers on wealth inequality--such as the oft-discussed tendency for some children of wealthy families to slack off--most effects--like the ability to take greater risks through entrepreneurship or other activities--would lead to increased wealth disparities.

"More Educated" does not necessarily correlate with enhanced wisdom. Add intergenerational wealth into that equation and the odds of wisdom are reduced.  Sometimes you have to live it to know it. 

[Incredulity 11876]

9 minutes ago, washparkhorn said:

A lot of wisdom in that thought. It is a sticky wicket in economic circles: https://www.federalreserve.gov/econres/notes/feds-notes/how-does-intergenerational-wealth-transmission-affect-wealth-concentration-20180601.htm

"More Educated" does not necessarily correlate with enhanced wisdom. Add intergenerational wealth into that equation and the odds of wisdom are reduced.  Sometimes you have to live it to know it. 

For the record I think the estate tax rates and limits of the early 2000’s were fucking ridiculous. 55% over $650k.

[washparkhorn 9973]

2 minutes ago, Incredulity said:

For the record I think the estate tax rates and limits of the early 2000’s were fucking ridiculous. 55% over $650k.

Absolutely. The limits must be much higher if one cares about a functioning middle class. (Sadly, those in charge don't give a damn about a functioning middle class).

[Okie State 3889]

55% over $650K is complete horseshit.

[Schulz2.0 29280]

3 hours ago, Cheeseweasel said:

I'm going to write a book called "How to live on only 8 million dollars". I'm going to sell it for $1 and sell 8 million copies. Boom. Rich.

7 minute abs

[ChiTownDoc 21345]

9 hours ago, ZB'Tejas said:

Isn't that the truth... I look at the potential upside and the dividends I've got over the last 6 -7 months and i'm not sure why I don't have all my extra cash in these.

This is usually how I feel when I dump a lot of money somewhere...the results have not always been pretty.  

[Dbeasy 15595]

7 minute abs

How about 6 minute abs?

[Blotto 24019]

49 minutes ago, Dbeasy said:

How about 6 minute abs?

 Step into my office

[Cheeseweasel 26439]

14 hours ago, Fudge Nuggets said:

I’ve pretty much told the kids I will get them through college debt free and after that they’re on their own (that gives them a big leg up on most of their peers).  Plan accordingly. 

Same. And I'm going to help fund their IRA's for the first year or so until they get a steady job. Gotta prime that pump.

[B00M 6734]

12 minutes ago, Cheeseweasel said:

Same. And I'm going to help fund their IRA's for the first year or so until they get a steady job. Gotta prime that pump.

I like this idea, may even start the IRA sooner to get them thinking about it before college... But I'm making them take out loans to pay 50% of at least their freshman year so they're motivated to make a high value choice for school and degree and they have skin in the game. Manageable levels of fear are good motivation. 

Edited August 21, 2020 by B00M

[Cheeseweasel 26439]

3 minutes ago, B00M said:

I like this idea, may even start the IRA sooner to get them thinking about it before college... But I'm making them take out loans to pay 50% of at least their freshman year so they're motivated to make a high value choice for school and degree and they have skin in the game. Manageable levels of fear are good motivation. 

My dad did that with me. He "paid" for some of my college but I paid most of it back to him when I started working. (Granted, that was when 10k covered a year of college easily). He put a bunch of that money into a UTMA account for my son. Passing the knowledge of how to invest/keep out of debt is the greatest thing my dad ever did for me. 

[Nice Guy Eddie 13730]

Agree that the “8m is needed for retirement” is a click bait headline and probably gets the author invited on tv interviews. Maybe his formulas tell him this is the case, but that is impossible for 99% of retirees.

I do assume that an about-to-retire person with a pension that pays them via an annuity, the pension is probably calculating a smaller Monthly payment now.  Much smaller. I have one of these from a job I was at years ago. They used to calculate a $1000/mo payment but it’s dropped to 700 when I last checked. All due to interest rates dropping. My plan is to take the lump sum when I retire instead. Unless rates rebound in 2035.

[CooterBrown 18288]

40 minutes ago, B00M said:

I like this idea, may even start the IRA sooner to get them thinking about it before college... But I'm making them take out loans to pay 50% of at least their freshman year so they're motivated to make a high value choice for school and degree and they have skin in the game. Manageable levels of fear are good motivation. 

We have the regular college funds for our kids and then we have their "entrepreneurial" funds.  Basically, for an allowance, they get $1/week for every year they are old.  They have 3 buckets to split it into save, spend, and donate. The most has to go in save. They split as they see fit.  When the save jar is full, we go to the bank and invest it. I match their savings amount. I also auto invest $50/month for each of them into these accounts.  My 13 yo currently has $14,000 and the 7 yo has $6,000.  My 13 yo took the Red Cross babysitting course and was earning $50-100 per babysitting job, well, at least until COVID hit. She puts 50% of that in as well. Most of the investments are in Fidelity mutual funds (Select Software, Trend) and a few they picked like Disney.  Goal is to get them each over $20,000 by the time they graduate college so they have money to get started in life.

[Henry Hill 3156]

7 minutes ago, CooterBrown said:

We have the regular college funds for our kids and then we have their "entrepreneurial" funds.  Basically, for an allowance, they get $1/week for every year they are old.  They have 3 buckets to split it into save, spend, and donate. The most has to go in save. They split as they see fit.  When the save jar is full, we go to the bank and invest it. I match their savings amount. I also auto invest $50/month for each of them into these accounts.  My 13 yo currently has $14,000 and the 7 yo has $6,000.  My 13 yo took the Red Cross babysitting course and was earning $50-100 per babysitting job, well, at least until COVID hit. She puts 50% of that in as well. Most of the investments are in Fidelity mutual funds (Select Software, Trend) and a few they picked like Disney.  Goal is to get them each over $20,000 by the time they graduate college so they have money to get started in life.

Damn. That’s really impressive.

[B00M 6734]

20 minutes ago, CooterBrown said:

We have the regular college funds for our kids and then we have their "entrepreneurial" funds.  Basically, for an allowance, they get $1/week for every year they are old.  They have 3 buckets to split it into save, spend, and donate. The most has to go in save. They split as they see fit.  When the save jar is full, we go to the bank and invest it. I match their savings amount. I also auto invest $50/month for each of them into these accounts.  My 13 yo currently has $14,000 and the 7 yo has $6,000.  My 13 yo took the Red Cross babysitting course and was earning $50-100 per babysitting job, well, at least until COVID hit. She puts 50% of that in as well. Most of the investments are in Fidelity mutual funds (Select Software, Trend) and a few they picked like Disney.  Goal is to get them each over $20,000 by the time they graduate college so they have money to get started in life.

You're killing it. What age did you start this for them?

[CooterBrown 18288]

16 minutes ago, B00M said:

You're killing it. What age did you start this for them?

Allowances started at age 5.  However, from the time they could walk, they had a savings jar. Every time I had change or a loose bill, I would hand it to them and ask "What do we do with money?"  They were drilled to respond "Save and invest it!"  I started their investment account whenever that first savings jar filled up.  The youngest got lucky with a stock of Amazon a few years ago.  The oldest's account really took off once it broke $10K. 

For the oldest, I didn't notice the difference in her until maybe last year.  I think all the brainwashing finally clicked in her head. She is frugal but never asks us to buy her anything. She bought her own AirPods. She's gotten into gardening during the pandemic and bought her own plants. For Christmas, she got her mom an Apple Watch. She's quickly becoming very independent. 

The youngest is starting early. Last week she wanted a Disney Fit Bit but said she was going to save for it and buy it herself. Prior to that, she'd always ask us to buy her something.

 

[Anastasis 23718]

I am totally stealing some of Cooter's techniques. 

[tokamak 6687]

1 hour ago, CooterBrown said:

We have the regular college funds for our kids and then we have their "entrepreneurial" funds.  Basically, for an allowance, they get $1/week for every year they are old.  They have 3 buckets to split it into save, spend, and donate. The most has to go in save. They split as they see fit.  When the save jar is full, we go to the bank and invest it. I match their savings amount. I also auto invest $50/month for each of them into these accounts.  My 13 yo currently has $14,000 and the 7 yo has $6,000.  My 13 yo took the Red Cross babysitting course and was earning $50-100 per babysitting job, well, at least until COVID hit. She puts 50% of that in as well. Most of the investments are in Fidelity mutual funds (Select Software, Trend) and a few they picked like Disney.  Goal is to get them each over $20,000 by the time they graduate college so they have money to get started in life.

So the "save" bucket they can't touch? If they want to buy something (e.g. the airpods), they have to save it up in the spend bucket?

[CooterBrown 18288]

10 minutes ago, tokamak said:

So the "save" bucket they can't touch? If they want to buy something (e.g. the airpods), they have to save it up in the spend bucket?

Correct.  The save bucket is really the investment bucket.

The oldest got a bank account this year and the bank account savings is something she can dip into. However, the rule is she has to keep at least $250 in checking and $500 in savings. Anything above that, she can spend and move around between the two accounts.

 

 

Edited August 21, 2020 by CooterBrown

[Okie State 3889]

Good ideas on the kids investment accounts. My girls have built up a decent amount just from birthday and Christmas money over the years. It has reached a point where investing makes sense. I'll have to look into opening something for them.

[Superhero 9022]

What's the outlook on AAPL? Have $50K burning in my wallet.

Between mine and my parents' account, we have over 400 shares bought when it was < $100/share. Thinking of getting more of it, or dump some money into MSFT.

Edited August 21, 2020 by Superhero

[Cheeseweasel 26439]

Just now, Superhero said:

What's the outlook on AAPL? Have $50K burning in my wallet.

It never goes down. Ever. (Until you buy it)

[Superhero 9022]

1 minute ago, Cheeseweasel said:

It never goes down. Ever. (Until you buy it)

That's me and NFLX. If I ever decide to buy it again, I'll let you know so you can start shorting.

[Coelenterate Fuccboi 13434]

12 minutes ago, Superhero said:

What's the outlook on AAPL? Have $50K burning in my wallet.

Between mine and my parents' account, we have over 400 shares bought when it was < $100/share. Thinking of getting more of it, or dump some money into MSFT.

I’m sitting far more cash than I traditionally would. It goes against my nature to have it sitting around doing nothing. However, I’m trying to be patient for the next significant drop. We’ll see if I can hold out that long.

[woohorn 1131]

About to set up a Robinhood acct for family member. Anyone care about their code enough to pm me?

[Cheeseweasel 26439]

38 minutes ago, Casual Encounter said:

I’m sitting far more cash than I traditionally would. It goes against my nature to have it sitting around doing nothing. However, I’m trying to be patient for the next significant drop. We’ll see if I can hold out that long.

And if it doesn't come?

[Errestaurants 2570]

56 minutes ago, Superhero said:

What's the outlook on AAPL? Have $50K burning in my wallet.

Between mine and my parents' account, we have over 400 shares bought when it was < $100/share. Thinking of getting more of it, or dump some money into MSFT.

IBIO is a much better buy versus APPL. Better yet sale your entire APPL stake and buy IBIO