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Info Seeker
Posts: 3
Registered: ‎11-22-2008

Re: Retiring early - share your experience! Please!

Message 1 of 96 (370 Views)

I retired at 55 because my husband was dying from cancer and I wanted to be with him full time his last year of life.  I also hated my job tremendously.  Retiring was the very best thing I could have ever done.  I have worked a couple part time jobs over the years and have time now to enjoy life.  I travel a little each year to visit family and spend lots of time with my 3 dogs.  And I can now putter around in my house and garden.  Life is good.

Silver Conversationalist
Posts: 36
Registered: ‎11-14-2012

Re: Robin Hood Myth

Message 2 of 96 (473 Views)

Uechapa, where did you get that info? 

 

1) I dug deep my self and couldn't come up with anything that detailed.

2) It conflicts with what I did find.

 

I believe straight tax is not fair for the poor and a bit immoral.  I personally don't mind paying a few more grand in taxes so a stupid person working 2 jobs can stay afloat. I will not notice 2-3 grand missing while some fool working 2 jobs just to make 20k will. 

Silver Conversationalist
Posts: 36
Registered: ‎11-14-2012

Re: lead 'em to the water trough

Message 3 of 96 (477 Views)

Yes, hold on to your stocks during a crash.  Selling them is the worst thing you can do.  I did that in 2008.  I thought I had it all figured out.  I watched the other markets before the US market opened every day.  I sold everything when the market opened since Asia amd Europe had cashed.  My broker mentioned the trade might not be emmediate.  If he told me the truth that the trade would not go through until market close I might have kept him on.  I lost hundreds of thousands so the firm could make a few thousand on me by bundling my trades until market close.  By then they had lost 90% of their value from when I sold them.  Now I do my homework and I have a pro handle my nest egg. He bails out weeks before the crash.  I just hope he can do it one more time. 

 

Institutions slowly sell off before the crash then dump early in the crash.  They usually buy back double what they sold for half the money then made at market close. That is usually the low for the crash.  They like to be heavy in cash when the market bombs.  They make money on the market no matter wich way it goes. 

 

Our SS ought to be in the market.  There will be enough funds to spend a billion managing the money making it the most powerful institution in the world.  What gets me is the same fools who oppose SS going into the market have their own nest egg in the market.  They are where the institutions make their money from.

Silver Conversationalist
Posts: 36
Registered: ‎11-14-2012

Re: Retiring early - share your experience! Please!

Message 4 of 96 (485 Views)

Obviously, you know what you are doing.  Time in the market helps a great deal.  There is a world of difference between reading about a disaster and living through one.  I was in the market in my 20s.  Life was so much easier then.  We didn't make much money but we had a better standard of living than the kids do today. They may spend more on recreation than we did.  

 

You can time the market if you have the resorces.  Institutions ALL time the market.  It could cost them a half billion a year to do so but they are protecting hundereds of billions, so it is a cost of doing business.  There is a cheaper way that is not nearly as good but still saves the bacon.  They watch the market for subtle movement.  They firstly monitor all sorts of indicators that predict which way the market is headed.  Then when a crash is likely, they look for traces of instatutions subtelly dumping their most vulnerable stockand replacing it with defensive stock. This only costs a few million and is employed by high-end portfolio managers.  Needless to say, no individule has these resorces.  If you are that smart, you just find a manager that will do that for you. The monitoring requires a team of analysts.   I didn't know you could make 12% ROR using a passive technique.  10% doubles in less than 10 years.  You must be sitting on 10 times what you had in the 80s.

 

Enjoy your retirement!  You earned it.

Frequent Social Butterfly
Posts: 134
Registered: ‎12-11-2013

Re: Retiring early - share your experience! Please!

Message 5 of 96 (515 Views)
When I was a kid, during the 1950's, I remember TV ads encouraging people to buy savings bonds to fund retirement. I didn't hear of any other ways until I hit my 20's.
Conversationalist
Posts: 9
Registered: ‎02-10-2010

Re: Retiring early - share your experience! Please!

Message 6 of 96 (523 Views)
Living under your means & being virtually debt-free allows you to save and invest. I chose to invest in mutual funds and established a well diversified portfolio which survived 5 recessions since 1980, and a costly divorce, rather than fumble around with stocks and trying to 'time' the volatile market.

My portfolio has maintained a 12%+ ROR average for over 30 years, plus I managed it alone thus saving on fees. Besides my investment portfolio I have substantial savings and CDs also. Thank God, my retirement is in fact 'The Life of Riley'.

As Albert Einstein once stated: '...where there is a will, there is a way...' Smiley Happy Kids today at age 30 need to develop long-term vision and start planning their retirement then thus giving themselves at least 40 years.
Info Seeker
Posts: 4
Registered: ‎11-16-2015

Re: lead 'em to the water trough

Message 7 of 96 (549 Views)

Just a point about the market. When the market crashes, that is the time to buy your shares. You get them at fire sale prices. If you own shares when the market crashes, don't cash them out. Hang on for the ride, they'll come back up.

Conversationalist
Posts: 9
Registered: ‎02-10-2010

Re: Robin Hood Myth

Message 8 of 96 (556 Views)

From the Single taxpayer perspective:  Nonsense, the 'middle class' will not benefit except for the extra $50 from the $12k standard deduction (vs $11,950 from the current standard deduction + personal exemption); however, those that are 65/blind will lose their supplemental senior standard deduction of $1550 unless the plan is 'fixed', otherwise the 'middle class' will stand to lose $1500 per year once the retiree turns 65.

 

Single taxpayers who make between $45,001 to $200,000 will pay a straight 25%.

 

I, personally, will have a tax hike of 5% to help the rich to pay for the poor.  Smiley Happy

 

I complain though I make more than I need and my income streams are perpetual, plus I have excellent medical/dental/vision care, etc.; however, I do not approve of the unequal and unbalanced tax system, nor the government's 'Robin Hood' approach either.  A straight national sales tax would be best.

Silver Conversationalist
Posts: 36
Registered: ‎11-14-2012

Re: lead 'em to the water trough

Message 9 of 96 (557 Views)

Being debt free in retirement is safer but not always smart.  We have enough money to pay off our mortagage but at 2.5% interest rate and a return on our investments of about 17%. We make about 15k profit on our money after paying our yearly P&I from the money made from not paying off our mortgage.  That is 15k free and clear and we get to write off the I on our taxes ( a few more k). 

 

It is best to be shrewed when you are not working for a living any more.

Silver Conversationalist
Posts: 36
Registered: ‎11-14-2012

Re: Retiring early - share your experience! Please!

Message 10 of 96 (562 Views)
You are soooo right! Saving a little is the key to a comfortable retirement. We never made a lot of money. We are near center of the middle class. We never save a lot but we always saved some. I would invest in the market and would lose most in the market crashes. Still, I learned the hard way. I doubt I will get caught the third time for the strike out. For the last decade I have been reading the financials and am fairly comfortable. We will do much better than most persons we know who have been making more money than we have.

If you want a comfortable retirement you need to invest in learning how to invest, how things work financially and how to keep healthy once you are over 50. By the time you hit 70 it is too late, your ship has already left the dock.