Search found 1076 matches

by Garco
Fri Mar 15, 2024 6:54 pm
Forum: Investing - Theory, News & General
Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
Replies: 129
Views: 17353

Re: Retirees apparently tend to maintain assets - lessons for BH investors?

I have been retired for nearly 10 years. My accumulated invested wealth -- not counting real estate -- is more than double the nominal value when I retired. This has been brought about for various reasons. 1) On top of my accumulation from my working career, my spouse and I inherited significant amounts of cash and investments from our parents at about the same time I retired. 2) Our children have had their own successful careers and haven't needed us to contribute significant money to them yet (but we have voluntarily made such contributions). 3) Our health costs are amply covered by my former employer's well thought-out plans. 4) We have managed our accumulated wealth conservatively but constructively; IOW it is invested, not mainly sitti...
by Garco
Thu Mar 14, 2024 12:16 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5250
Views: 906742

Re: What are you up YTD? [Year To Date]

YTD I don't know. But it's positive. I'm more concerned with LTD (life to date). That's the money I live on, save, and plan to pass to my heirs.
by Garco
Wed Mar 13, 2024 10:15 am
Forum: Investing - Theory, News & General
Topic: Age 60+ AND retired? What's your asset allocation? What type of bonds/Fixed Inc instruments do you use?
Replies: 63
Views: 10045

Re: Age 60+ AND retired? What's your asset allocation? What type of bonds/Fixed Inc instruments do you use?

Our "allocation" is between plans as much as it is within types of investment. In our main retirement fund, we have 71% equities, 24% fixed income, and 5% cash (MM). Retired since 2014. We have additional funds in what I sometimes think of as a playground, namely a brokerage account. It makes for a good reserve (it adds about 25% to our total invested wealth).
by Garco
Tue Mar 12, 2024 8:10 am
Forum: Investing - Theory, News & General
Topic: How many are holding cash right now?
Replies: 203
Views: 31410

Re: How many are holding cash right now?

Cash is what I hold in my credit union. My investment account is about 10-15% "cash-like" (e.g., money market funds). But I balance my invested holdings between stocks and fixed income, roughly 65-35%.
by Garco
Wed Feb 28, 2024 9:36 am
Forum: Investing - Theory, News & General
Topic: "How much should I have in my 401k" article for various ages - thoughts?
Replies: 45
Views: 6375

Re: "How much should I have in my 401k" article for various ages - thoughts?

The recommended schedule is fair but also maybe fairly aggressive. One factor to consider is that most people marry and have a family. Often both spouses are employed. Another factor to consider is that most married couples have children who eventually may attend college; so saving for college costs may be as important as saving for retirement. In my case, we had a one-worker family. I've been retired for several years. We put two kids through college with no debt for them or for us. We are in good shape financially because we "oversaved," i.e., contributed to supplementary retirement accounts. Also we received some cash from the estates of our own parents (something that we didn't build into our planning, so this came as a last-m...
by Garco
Tue Feb 27, 2024 12:04 pm
Forum: Investing - Theory, News & General
Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
Replies: 129
Views: 17353

Re: Retirees apparently tend to maintain assets - lessons for BH investors?

I've been retired since 2014. I'm living on income from Social Security and RMD's from my defined contribution pension plan. I have other investments in a brokerage account. Over the last 9 years my accumulated invested wealth has nearly doubled. This is partly due to my having received some money by inheritance. I've invested most of that, though spent some on a new residence. In my 70's I'm not worrying about depleting my money.
by Garco
Sat Feb 10, 2024 3:39 pm
Forum: Investing - Theory, News & General
Topic: Reporter doing story on Investing in Russia
Replies: 11
Views: 1998

Re: Reporter doing story on Investing in Russia

I've travelled to Russia many times (but years ago). I'm also knowledgable about Russian politics, including their political history. I know too much about the political mess in that country to invest any of my money there. There are crooks running the country including the economy.
by Garco
Thu Feb 01, 2024 9:48 am
Forum: Investing - Theory, News & General
Topic: Asset allocation strategy
Replies: 37
Views: 3806

Re: Asset allocation strategy

My asset allocation now in my main retirement account: Equities 67%, Fixed Income 17%, Other 6%. The "other" is an annuity fund. My plan is to keep on with roughly this distribution. I am retired and am drawing income (spending money) from this account as well as Social Security. I'm not totally averse to risk, so I'm also looking for returns or growth in my overall investment value, on top of keeping ahead of inflation.
by Garco
Sun Jan 28, 2024 6:51 pm
Forum: Investing - Theory, News & General
Topic: Has anyone changed their asset allocations in retirement
Replies: 19
Views: 1587

Re: Has anyone changed their asset allocations in retirement

I've been retired for several years. I've made several changes in my port since I retired. One of the larger ones is that I've got a more aggressive allocation in my main investment account now than I had when I retired at age 70. I chose to ride with the tide the last couple of years.

That main port has 67% in equities. So much for "age in bonds." (I'm in my 70's.)
by Garco
Tue Jan 23, 2024 11:06 am
Forum: Investing - Theory, News & General
Topic: TIAA Marketing?
Replies: 17
Views: 2324

Re: TIAA Marketing?

Before I retired, my employer offered TIAA and Fidelity as retirement plan alternatives. While TIAA was the major fund that I chose to use, on occasion I participated in Fido investments. That has paid off. One reason why I established a Fidelity option was to have a brokerage at hand as well as a few supplemental retirement accounts (SRA's). Now, in retirement that has proved to be quite useful. I have my TIAA 403b RA plus Fidelity IRA and brokerage accounts. When I take RMD's from my Fido IRA I reinvest the net-of-taxes RMD into the brokerage. Also, I have used the brokerage for wider purposes. For example, when I received a bequest, I put most of that money into the Fido brokerage.
by Garco
Wed Jan 17, 2024 8:59 pm
Forum: Investing - Theory, News & General
Topic: How did you make your first $1M?
Replies: 148
Views: 35638

Re: How did you make your first $1M?

1. Slowly. When I began my work career, after I had completed my PhD in 1971, I earned a salary of $11,500 for the academic year plus about $4,000 for the summers. I had an academic post at a large university. I was an assistant professor. On top of the academic year salary, I earned another ca. $4,000 for summer teaching. From this salary I contributed 4% to my retirement plan, which was matched by 8% from my employer. I left that employer after 4 years. 2. By the time I retired in 2014 from my second and last academic appointment I was earning about $170K per year (11 months of salary), and my retirement fund -- with 5% of my gross pay withheld for the retirement fund, double-matched 10% from my employer -- I had accumulated almost $2 mil...
by Garco
Sun Jan 14, 2024 12:50 am
Forum: Investing - Theory, News & General
Topic: How did you make your first $1M?
Replies: 148
Views: 35638

Re: How did you make your first $1M?

Frankly, I don't remember when I made my first million. I'm retired now and have just under four million. That's my invested money. I also have real estate that's valued at half a million or more.

Roughly 85% of the total derives originally from my earnings from work plus my savings and investment programs. About 15% of my current "net worth" originated from family bequests (my share of estate distributions), which came to me mostly after I had ended my working career.
by Garco
Sun Jan 07, 2024 11:12 am
Forum: Investing - Theory, News & General
Topic: Ronald Read the Janitor who amassed 8 million
Replies: 104
Views: 25702

Re: Ronald Reed the Janitor who amassed 8 million

The janitor at the World Trade Center doubtless has many storeys to exploit.
by Garco
Sat Dec 30, 2023 9:49 pm
Forum: Personal Investments
Topic: 2023 was a retired investor's dream
Replies: 41
Views: 6490

Re: 2023 was a retired investor's dream

RyeBourbon wrote: Sat Dec 30, 2023 5:37 pm
Garco wrote: Sat Dec 30, 2023 1:17 pm My goal for 2024 is to add net 4.8% to my end-of-2023 investment account total, thereby jumping to the next 7-figure number in total invested wealth. Added: This makes no adjustment for inflation; but it may keep me where I am on an inflation-adjusted basis.
What are you doing to reach this goal?
I'm planning nothing new. I've got a good mix of investments that have performed well over the years. +4.8% would be a moderate increase without my changing the risk profile of my accounts. But based on the projected 2024 inflation rate of 2.3% my real gain would be only about half of the 4.8% target.
by Garco
Sat Dec 30, 2023 1:17 pm
Forum: Personal Investments
Topic: 2023 was a retired investor's dream
Replies: 41
Views: 6490

Re: 2023 was a retired investor's dream

My goal for 2024 is to add net 4.8% to my end-of-2023 investment account total, thereby jumping to the next 7-figure number in total invested wealth. Added: This makes no adjustment for inflation; but it may keep me where I am on an inflation-adjusted basis.
by Garco
Fri Dec 29, 2023 12:48 pm
Forum: Investing - Theory, News & General
Topic: Do you view portfolio risk differently when you retired
Replies: 32
Views: 3884

Re: Do you view portfolio risk differently when you retired

I've been retired since 2014. That means I have not had income from work. But I have had income from Social Security and from my investment and banking accounts. My retirement funds are pretty much at their all-time high, even as I am taking required minimum distributions (RMD's) from my major tax-deferred investment accounts.

Do I view portfolio risk differently in retirement? Not really, despite not being able to count on external income. Maybe the main reason for this is that my investments in a 403b plan, an IRA, and stock market funds are sound and balanced. Another reason is that I think my family members are in a good situation financially. We pay more attention to our personal health and welfare than to our portfolios.
by Garco
Thu Dec 21, 2023 10:28 am
Forum: Investing - Theory, News & General
Topic: The murky path to figuring out if you are saving enough
Replies: 30
Views: 4751

Re: The murky path to figuring out if you are saving enough

I didn't have a choice. I saved money from every paycheck from age 26 until I retired at 70. That saving was because my employers sponsored retirement funds (Vanguard, Fidelity, TIAA) and required me to contribute 5% off the top of every paycheck while my employers double-matched with a 10% contribution. It wasn't a murky path , given that I stayed employed for 44 years and stayed invested the whole time. Fidelity, TIAA, Vanguard were among the players in my case. As were my employers. I played a role by performing well enough to get raises every year. Some of that was a general raise to employees; some was "merit-based," i.e., keyed by my own work achievements and contributions. I also turned what was at base an "academic ye...
by Garco
Tue Dec 19, 2023 9:16 am
Forum: Investing - Theory, News & General
Topic: Winning the game and Dry Powder
Replies: 157
Views: 26226

Re: Winning the game and Dry Powder

I have been retired since 2014. I have a lot of money that I don't need for my own use. I stay invested. One of my children would like to buy a house, mainly using my and my wife's money. We have been reluctant to do this, not because it would heavily tap our reserves (which it might do) but because we would prefer to hang onto our capital and our own options. Eventually our kids are going to get a lot of money from our estate. But for now they have to build their own household economies. In addition, we have two children so "fairness" might imply that whatever we give to one child we should also give to the other. But that would be too much for us to release now from our estate.
by Garco
Mon Dec 18, 2023 2:08 pm
Forum: Investing - Theory, News & General
Topic: Winning the game and Dry Powder
Replies: 157
Views: 26226

Re: Winning the game and Dry Powder

We need a lot of dry powder to buy a house for our daughter. If we succeed in that purchase, we will have won one game. We will also have money left over to continue playing.
by Garco
Mon Dec 18, 2023 2:03 pm
Forum: Investing - Theory, News & General
Topic: Winning the game and Dry Powder
Replies: 157
Views: 26226

Re: Winning the game and Dry Powder

We need a lot of dry powder to buy a house for our daughter. If we succeed in that purchase, we will have won one game. We will also have money left over to continue playing.
by Garco
Sun Dec 17, 2023 11:08 am
Forum: Investing - Theory, News & General
Topic: SWR with Social Security
Replies: 15
Views: 2924

Re: SWR with Social Security

I don't think in terms of SWR. I think in terms of RMD from my tax-deferred funds plus SSI -- in other words, what goes into my bank account automatically each month. I spend almost all my cash from RMD's (from my main 403b account) and SSI. But my investment portfolio has grown in size (inflation adjusted), and is not depleting. Also, a significant chunk of my invested money is not subject to RMD's. It's in a separate taxable brokerage account.
by Garco
Mon Dec 11, 2023 9:05 am
Forum: Investing - Theory, News & General
Topic: How do you retirees monitor withdrawal rate (SWR) vs portfolio size?
Replies: 49
Views: 7802

Re: How do you retirees monitor withdrawal rate (SWR) vs portfolio size?

I let the machine do it. I use the nominal RMD applied to my 403b and my TIRA by my investment companies. I reinvest 100% of the net-of-taxes (withheld) withdrawal from the TIRA (the smaller account) each month into a brokerage account. I send the net-of-tax withholding withdrawals each month from my 403b (the larger account) to my bank, where the cash gets automatically allocated into a few categories, including "checking," "savings" and "escrow" accounts. My Social Security income (net of withholding) is also sent directly to the bank and is deposited into "checking."
by Garco
Tue Dec 05, 2023 9:16 am
Forum: Investing - Theory, News & General
Topic: Has surviving stock market crash made you more resilient
Replies: 121
Views: 13719

Re: Has surviving stock market crash made you more resilient

Crashes took away a lot of my retirement fund a couple of times. But I remained employed, getting raises, avoiding major debt. I focused on my work and making sure the college funds for our kids were sound, with help from the grandparents. And I kept contributing from my salary monthly to my 403b. I never had major debt other than a home mortgage. Time passed, the market bottomed and turned upward, I kept working and getting raises, and I kept adding to my retirement investments. What "made me more resilient" is not panicking. In a 39-year working career I was never without a job. I did change my employer a couple of times, but that was voluntary "career climbing." Late in my career, I also inherited some money from my p...
by Garco
Sun Dec 03, 2023 10:34 am
Forum: Investing - Theory, News & General
Topic: Has surviving stock market crash made you more resilient
Replies: 121
Views: 13719

Re: Has surviving stock market crash made you more resilient

I am retired, living on Social Security and required distributions from my tax deferred investment accounts, as well as dividends. This crash hasn't made me more resilient. At my age, I tend to look forward, not backward. I don't need to recover my account balances from years ago. But I do monitor and manage my accounts and am happy to have good income flow as well as a very large reserve of invested cash and real estate. I do not have annuities; I don't need them.
by Garco
Sun Dec 03, 2023 10:17 am
Forum: Investing - Theory, News & General
Topic: Has your portfolio recovered since Q1 2022?
Replies: 104
Views: 13629

Re: Has your portfolio recovered since Q1 2022?

My portfolio is not fully back to its peak. This is due in significant part to the fact that I'm in the decumulation stage (taking RMD's) -- retired now for almost 10 years. But I like the current momentum.
by Garco
Sun Nov 26, 2023 10:27 pm
Forum: Investing - Theory, News & General
Topic: Longevity Risk
Replies: 64
Views: 7844

Re: Longevity Risk

My sense of longevity risk is that it's not very substantial. As I approach 80 and my wife 81, our accumulated invested (and saved) wealth has continued to grow since my retirement almost 10 years ago, and thus our a accumulations provide us with a cushion, along with Social Security. We have a fair amount of home equity, as well as long-term care insurance (for which, however, we pay annual premiums that grow in magnitude each year). In addition, we have excellent health care services, sponsored by my former employer -- as a supplement to Medicare. So I don't worry about the risk of longevity, but I do keep it in mind, while keeping some contingencies in mind -- including our ability to support other members of our family, including our ch...
by Garco
Thu Nov 16, 2023 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Estimating Life Expectancy Accurately - Defying the Lake Wobegon Effect
Replies: 202
Views: 23702

Re: Estimating Life Expectancy Accurately - Defying the Lake Wobegon Effect

The statement that somebody has no idea how long I'm going to live is meaningless if one doesn't know a person's current age. Sure, one can use general statistics on life expectancy. But a critical piece of information is how old a person is now. For example, I know my life expectancy is above 60 because I'm already above 60.

So most statisticians, when looking at people who are currently alive, will try to calculate what demographers call "expectation of remaining life" -- conditioned on how old the person is now, as well as other information on a person's current health or physical status.
by Garco
Tue Nov 07, 2023 11:31 am
Forum: Investing - Theory, News & General
Topic: Is investing the best way to hedge against the risk of my job being replaced by AI?
Replies: 22
Views: 2783

Re: Is investing the best way to hedge against the risk of my job being replaced by AI?

I'd put that question in a broader context. For me, now retired, investing was a hedge against my having to retire -- or losing my job prematurely. And it was a very good hedge. When I retired I had no debt, and no need for a job. I had significant capital, which has increased since then mainly because of growth in the value of my investments, including real estate (my home).
by Garco
Sun Nov 05, 2023 9:16 pm
Forum: Personal Investments
Topic: TIAA traditional tradeoff between higher current rate and higher minimum rate
Replies: 78
Views: 8171

Re: TIAA traditional tradeoff between higher current rate and higher minimum rate

@CREFWATCH. I am impressed that you have decided not to annuitize with TIAA. I have the same feeling, and within the next few years will have to act on this feeling -- one way or another -- concerning my 403b. In the meantime I am retired, living on SS plus RMD's from my 403b as well as an IRA. My intention is to continue to hold onto the 403b and IRA but not to annuitize either one. I'm in the middle of turning my "Trad" via TPA's into other investments within my account. I also have investments in a brokerage account, which I intend to keep active (but it's not aggressively invested).
by Garco
Sat Nov 04, 2023 8:39 am
Forum: Investing - Theory, News & General
Topic: Goal based investing compared to conventional investing
Replies: 70
Views: 7096

Re: Goal based investing compared to conventional investing

1. I had a basic goal of investing and saving for retirement. The main method was simple: contribute from my salary income to an investment plan sponsored by my employer. That's not just conventional -- I had a goal in mind, and a method that was established by my employer: my 5% contribution from salary was double-matched by 10% from my employer. Over a period of 43 years, the savings and investing paid off. I'm still benefittng from it in retirement. 2. I had a goal of owning my home. Main method: save enough cash from my monthly paychecks for a downpayment and other start-up costs; then support a mortgage from my monthly income. No problem. I only ever bought one house. 3. I had a goal of paying for the advanced education of my 2 childre...
by Garco
Thu Oct 19, 2023 9:57 am
Forum: Investing - Theory, News & General
Topic: International (Non-US) versus US Equities (The "Arguments")
Replies: 5351
Views: 905094

Re: International (Non-US) versus US Equities (The "Arguments")

Sometimes I think of that old joke about Werner von Braun. Referring to not following through on the results of his rocket launches: "I just sends dem up. I don't care ver dey come down."

I invest in non-US equities for the sake of "market diversification." I don't have a strong expectation that I will get rich that way.
by Garco
Wed Oct 18, 2023 10:05 am
Forum: Investing - Theory, News & General
Topic: Multiple-Redundancy "Bullet Proof" SWR for Early Retiree
Replies: 30
Views: 4598

Re: Multiple-Redundancy "Bullet Proof" SWR for Early Retiree

I have been "safely withdrawing" since I reached a "normal retirement age" of 70. Since a large majority of my invested money is in an account that's subject to required minimum distributions (RMD's), I'm following the percentage withdrawal rate dictated by the rules of my 403b account as well as an IRA that I own. Even though I received some money from an external source (bequests) at just about the time I retired -- plus monthly Social Security payments -- I've followed the RMD plan of my main retirement fund and the IRA. That doesn't mean I've spent all the money I've been required to take from my plan. I've re-invested and "saved" a significant part of my RMD's, along with the bequests. I would call my situ...
by Garco
Thu Oct 12, 2023 9:15 am
Forum: Investing - Theory, News & General
Topic: Lump Sum Investing?
Replies: 33
Views: 3945

Re: Lump Sum Investing?

When I bought my last residence, I paid cash for it. A lump sum. But that cash had accumulated over many years of payroll savings and investing. Neither the purchase nor the savings and investing can be characterized as "lump sum" investing.
by Garco
Fri Oct 06, 2023 11:28 am
Forum: Investing - Theory, News & General
Topic: Some of my friends are hesitant to invest due to their low income.
Replies: 85
Views: 10205

Re: Some of my friends are hesitant to invest due to their low income.

Until I had a steady job with a decent salary, I saved but didn't invest. Only when I got my first professional job in my late 20's did I begin to invest. But that was in a retirement plan, not an independent brokerage or other financial account. However, once that investment mechanism began I kept it going for the next 40+ years. The key to such a plan is that I had no choice; money was automatically taken from my salary (and supplemented by my employer). In addition to this, however, I kept up some independent saving b/c I needed to build up equity for buying real estate (my home). And I needed to accumulate cash (again independent of my retirement fund) to support the college educations of my kids.
by Garco
Tue Oct 03, 2023 10:44 am
Forum: Investing - Theory, News & General
Topic: Were you nervous when you retired?
Replies: 147
Views: 22030

Re: Were you nervous when you retired?

I retired in 2014. I wasn't nervous at all. Financially we were in very good shape from decades of contributions to a 403b plan with TIAA. My employer guaranteed continuing medical coverage for me and my spouse.

We had no debt. A combination of my TIAA plan and other investments gave us a large financial reserve. Social Security has been an excellent supplement. Medicare, in combination with my employer's health plan, has been excellent.
by Garco
Thu Sep 28, 2023 11:30 am
Forum: Investing - Theory, News & General
Topic: What did work in the late 60's?
Replies: 82
Views: 13927

Re: What did work in the late 60's?

In the 60's I was in college and grad school. I didn't have any spare cash. I was paying tuition, with support from my parents and from scholarships from the colleges. In 1971 I began my working career. Beginning salary $12,100 a year. Then $13,200, $14,300, $15,500. Then changed employers, starting at $17,500.

What worked? I worked. I invested in retirement funds. I lived for another 45 years. Stayed employed and investing in retirement plans. Paid off mortgage on home. Nominal salary increased more than 10-fold. Accumulated time in the market.

Persistence in work, in saving and investing, marrying well.
by Garco
Thu Sep 28, 2023 11:12 am
Forum: Investing - Theory, News & General
Topic: "Does Market Timing Work?"
Replies: 42
Views: 4080

Re: "Does Market Timing Work?"

Market timing? What's that?

Time in the market worked for me for 40 years while I was employed. I'm retired now and it still works.

Rather than "timing" I focused on persistence and diversification across market sectors, as well as keeping my investing activity going after I retired. Never reduced to only clipping coupons.

Another very important thing: stay well, stay employed, get salary increases, buy real estate. Support your kids through college (even if you need to put up a lot of cash or take on loans).
by Garco
Sat Sep 23, 2023 8:23 pm
Forum: Investing - Theory, News & General
Topic: Aren't you an above-average investor?
Replies: 169
Views: 17759

Re: Aren't you an above-average investor?

I'm not necessarily an above-average investor. But I know that -- leaving aside our real estate holdings -- I have a lot more money invested than the average person in my age group and occupational category.

I've been retired since 2014. My invested wealth including real estate is between $3 and $4 million.

I started my professional career in 1971 with an annual salary of about $14000. So I've certainly moved ahead from that. And I don't worry about my economic situation, nor the welfare of my family.
by Garco
Sat Sep 23, 2023 3:45 pm
Forum: Investing - Theory, News & General
Topic: Retirement dreams and reality
Replies: 107
Views: 24704

Re: Retirement dreams and reality

I retired at a normal retirement age (70). I didn't have any unusual dreams. I wanted to leave the zoo-like atmosphere in the unit where I worked. I fortunately had the resources to do this. My accumulated retirement funds included mainly a 403b account. I also turned on Social Security distributions. These were both supplemented by money that came to us from estates on both sides of our family -- shortly after I retired. So finances were and still are not any hindrance to our liberation from a 39-year professional career. Also important to our well-being is the continuation of comprehensive health plans by my former employer. In addition, our two grown kids have done well in their own careers and are completely financially secure; but we h...
by Garco
Fri Sep 22, 2023 10:24 am
Forum: Investing - Theory, News & General
Topic: "Retire Secure for Professors and TIAA Participants" -- a Gem
Replies: 53
Views: 9047

Re: "Retire Secure for Professors and TIAA Participants" -- a Gem

"Academics may have unique opportunities but few take advantage of them. The vast majority only utilize a DCP or a DBP. Few take advantages of 403b and 457 accounts. Many don't have access to both."

As a retired academic I agree that many academics don't take advantage of all the options in their retirement plans (or planning). But anyone whose employer sponsors a 403b plan has a significant general benefit. I'm one of those former profs. My main employer for 39 years offered a 403b (added: also 457b), with alternative sponsors (TIAA and Fidelity). Where the advice ran short, however, was in estate and end-of-career strategies. We were late in realizing and taking advantage of all the tax-saving options.
by Garco
Fri Sep 22, 2023 9:20 am
Forum: Investing - Theory, News & General
Topic: Aren't you an above-average investor?
Replies: 169
Views: 17759

Re: Aren't you an above-average investor?

I can only answer that question by comparing myself to my peers -- folks I worked with for several decades. I am well above average in many things. I have an above-average lifetime accumulation of money, but I'm not an above-average "investor." The accumulation comes from three sources: 40+ active years in my main career line; gross annual salary that began at $14K and ended ten years ago a bit short of $200K per year; and participation in a good investment plan sponsored by my employer. My ventures into the stock market were limited, until the last few years when I put some inherited money to work. I am also fortunate to have benefited from excellent fringe benefits in the form of employer-sponsored health insurance (plus Medicar...
by Garco
Thu Sep 21, 2023 11:50 am
Forum: Investing - Theory, News & General
Topic: Aren't you an above-average investor?
Replies: 169
Views: 17759

Re: Aren't you an above-average investor?

I'm well above average among people of my age cohort in my invested and accumulated wealth, including real estate, stocks, and bonds. But I'm not a well above-average "investor," in terms of skills and knowledge. Most of my accumulation and investments came from my having tax-deferred investment and savings plans sponsored by my employers, plans to which I contributed up to 15% of my gross salary (including employer match) during a 43-year professional career. In sum, I earned my wealth but I didn't engineer it myself. In addition to this earned wealth, I received a significant inheritance from both sides of my family. This inherited money added 15-20% to my own accumulation via my working career and work-related investment plans....
by Garco
Tue Sep 12, 2023 10:46 am
Forum: Investing - Theory, News & General
Topic: The 3 million for retirement study, question
Replies: 30
Views: 5702

Re: The 3 million for retirement study, question

East Undershirt or a close cousin is my fate. I don't need $3 million. But my grown children live in New York City. They can constructively use whatever we leave for them from our estate. At this stage and age, we're doing our best for them.
by Garco
Sat Sep 09, 2023 8:58 pm
Forum: Investing - Theory, News & General
Topic: Do investment advisors not like when a client tells them to sell a stock?
Replies: 20
Views: 2405

Re: Do investment advisors not like when a client tells them to sell a stock?

I never encountered such a problem. Sometimes I tell my advisor to look into making a certain transaction and he will do that before we make any investment moves. To add: Because we inherited some money and stocks just about when I retired, I consulted an advisor. I already had a long-term assigned advisor for my main retirement investment account. He helped with decisions on allocating RMD's. But I needed some more general advice when we inherited stocks and bonds and cash that were not a product of my employment or career. The mix of inherited funds was peculiar and not something I was familiar with. I decided to do two things: open up an account with a brokerage (my original holdings were tied to a specific retirement plan). Then the &qu...
by Garco
Sat Sep 09, 2023 5:23 pm
Forum: Investing - Theory, News & General
Topic: Inheritance & How It Impacted Your Money Life
Replies: 216
Views: 25840

Re: Inheritance & How It Impacted Your Money Life

We were never promised an inheritance. But it was no secret that our parents had pretty good incomes, owned good homes that were free of mortgages, paid cash for our own college tuitions, and sent over some money to support our own kids in college. When the parents passed away, there were estates on both sides. Also siblings. On my wife's side, her parents' estate was divided into 3 parts, one of which included the parent's summer house; my wife got a third of the cash plus a third of the cash value of the principal home (not the summer house). On my side, my parents' estate was equally split among 4 children. The sum included the value of their home after it was sold; most of the sum was from cash and investments (bond and stock holdings)....
by Garco
Fri Sep 08, 2023 9:04 am
Forum: Investing - Theory, News & General
Topic: Inheritance & How It Impacted Your Money Life
Replies: 216
Views: 25840

Re: Inheritance & How It Impacted Your Money Life

We received an inheritance from both sides of our family. This was at just about the end of my working career. The money was divided among several surviving sibs -- 5 on my side, 3 on my wife's side. This didn't change our life style very much, but it increased our net worth by about one-third. One immediate effect was that we paid off a student loan (for professional school) of one of our children.

On the whole, the main effect was to allow us to relax. No big spending spree, but we have a reserve, on top of what we put together from a good career of working, saving, and investing. We created a supplemental investment account -- an emergency fund of sorts.
by Garco
Wed Sep 06, 2023 10:51 am
Forum: Investing - Theory, News & General
Topic: What motivated you to save money?
Replies: 232
Views: 28385

Re: What motivated you to save money?

I kept on receiving money. I had to put it somewhere.

How about a bank? How about buying something (a car, a house) or traveling? How about donating some to my kids.

It has all worked out pretty well. And I have a lot of money left over, which I've invested.
by Garco
Wed Sep 06, 2023 9:01 am
Forum: Investing - Theory, News & General
Topic: "The Place of Social Security in Your Retirement Portfolio"
Replies: 49
Views: 8481

Re: "The Place of Social Security in Your Retirement Portfolio"

My "pension" (RMD from a 403b) is the check that I receive early in the month. My Social Security is the check that I receive toward the end of the month.

The pension check is much larger than my SS income. But they both matter a lot. In some ways the very timing of SS [late in the month] is like getting a nice pat on the back each month for my 44 years of employment. But SS alone wouldn't be sufficient for my family because we've got a lot of expenses for our properties and our daily subsistence (our "lifestyle").

A third major source of retirement support is Medicare, which adds to the Humana health plan from my former employer. Our out-of-pocket expenses for healthcare are negligible.
by Garco
Tue Sep 05, 2023 2:20 pm
Forum: Investing - Theory, News & General
Topic: What motivated you to save money?
Replies: 232
Views: 28385

Re: What motivated you to save money?

Looking back over the 51 years since I completed my formal education, in my working career I have always saved money in two forms: 1) bank holdings, and 2) retirement investments. The bank holdings were mainly to anticipate certain expensive future costs: buying a house and supporting a family, including paying for the college educations of my children. I was fortunate to have parents who contributed to paying the college costs of our children. Except for a home mortgage I never had any serious outstanding loans. We have owned just two residences over the course of my married life. Mortgages have long been paid off. We have only owned one car at a time. Purchased new for cash. So now, in retirement, we don't owe anybody any money. And we co...
by Garco
Sun Sep 03, 2023 10:30 am
Forum: Investing - Theory, News & General
Topic: BND vs VMFXX
Replies: 20
Views: 3689

Re: BND vs VMFXX

I use VMFXX as a storage place for cash that I take out of other investments in my plan. VMFXX is the immediate source of my monthly RMD withdrawals, which are sent automatically to my bank account. I also have some other FI investments, but mainly I'm invested in market equities (stock funds).