Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

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Sandtrap
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Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by Sandtrap » Fri Dec 22, 2017 11:15 am

Happy New Year. :sharebeer
Congratulations on everyone's successes.
Personal and Financial Milestones are evident in so many threads. :D

What actionable financial and career steps would you pass on to others following in your footsteps?
1.
2.
3.
4.

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HomerJ
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by HomerJ » Fri Dec 22, 2017 11:30 am

1. Live below your means

2. Save half your raises (if you get a $5000 raise, increase your life-style by $2500, and your savings $2500 - after 10-20 years, you'll be saving a ton, and still increasing your lifestyle each raise).

3. Recognize when you have "enough" (at that point you can stop increasing your lifestyle).

4. Age in bonds. This will slowly move you to a more conservative portfolio as you near retirement.

5. Do not try to time the market. Just stay with your asset allocation through thick and thin. Stay the course.

6. Be grateful for all that you have.

RadAudit
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by RadAudit » Fri Dec 22, 2017 11:31 am

The tips I plan to pass on to the kids are the same this year as they were last year.

1 Develop a workable plan
2 Invest early and often
3 Never bear too much or too little risk
4 Diversify
5 Never try to time the market
6 Use index funds when possible
7 Keep costs low
8 Minimize taxes
9 Invest with simplicity
10 Stay the course

Maybe sooner or later, they'll listen.
FI is the best revenge. LBYM. Invest the rest. Stay the course.

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bligh
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by bligh » Fri Dec 22, 2017 11:32 am

I do not consider myself in a position to give advice to others. However, if I were to only give 4 bits of financial advice to my kids, it would be these:

1. Earn a lot. Get into as high an income profession as you can, with as much long term stability as possible. Be humble, work smart and hard and don't be a d**k to your co-workers, or burn bridges.
2. Save a lot. Live below your means. In the beginning, while you are young .. keep it WAY below. Spend only what you must, invest everything else.
3. Invest Smart. Invest wisely, conservatively, and diversify broadly. Recognize the difference between investments and gambling.
4. Spend Wisely. Figure out the things you enjoy most in life, and choose to optimize your time and money to do more of those things, ignore the marketing.

The path is simple, but walking it can sometimes be hard.

WhyNotUs
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by WhyNotUs » Fri Dec 22, 2017 11:37 am

1.) LBYM- Live below your means
2.) Set and forget investments annually
3.) Spend time on the more important aspects of life- meaning and relationships
4.) Try to enjoy what comes your way regardless of how it compares to others
I own the next hot stock- VTSAX

MrPotatoHead
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by MrPotatoHead » Fri Dec 22, 2017 6:01 pm

01) Live well below your means and invest at least 20% of your gross a year.
02) Avoid getting married as it is an uncontrollable risk factor.
03) Target retiring in your mid 40s with a contingency plan of 50 and another contingency of 55.
04) Choose your state of residence carefully.

sksbog
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by sksbog » Fri Dec 22, 2017 6:52 pm

MrPotatoHead wrote:
Fri Dec 22, 2017 6:01 pm
01) Live well below your means and invest at least 20% of your gross a year.
02) Avoid getting married as it is an uncontrollable risk factor.
03) Target retiring in your mid 40s with a contingency plan of 50 and another contingency of 55.
04) Choose your state of residence carefully.
MrPotatoHead

Can you elaborate poits #3 & #4?

MrPotatoHead
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by MrPotatoHead » Sat Dec 23, 2017 2:27 am

sksbog wrote:
Fri Dec 22, 2017 6:52 pm
MrPotatoHead wrote:
Fri Dec 22, 2017 6:01 pm
01) Live well below your means and invest at least 20% of your gross a year.
02) Avoid getting married as it is an uncontrollable risk factor.
03) Target retiring in your mid 40s with a contingency plan of 50 and another contingency of 55.
04) Choose your state of residence carefully.
MrPotatoHead

Can you elaborate poits #3 & #4?
I had a mulit-phased retirement plan for myself. I knew that lifestyle wanted and it as easy to put an annual price tag around that. Then it was a simple matter to extrapolate the lump sum I would need to fund that lifestyle into perpetuity at a given withdraw rate. So for example let’s say I determined my lifestyle number was 40K a year, and I decided that if I retired at 40 I would want to use a 1.6% withdraw rate. Ergo I would need 2.5 million to retire. With SS looming in a nearer future, I might think I could get by with a 2.0% withdraw rate and 2 million dollars at age 50. So those are more or less the knowns. What is not know is the rate of return on investments nor future income. So I Created lump sum amounts I felt comfortable with and withdraw rates I was comfortable with. I also created age based bucket lists. In my case I planned to deliberately decreased my workload if I missed a target in order to insure age based bucket list items were fulfilled. So in essence I just executed the contingency plan. The contingency plans were designed to push toward the next milestone while also reducing my workload, thus allowing the fulfillment of bucket list items. The plan requires a certain confidence that my investments would work for me and more the replace the income lost while enjoying life a bit more. But once your nut grows to a certain size it seems to simply keep on growing. The whole point of my plan was so I did not end up like my father, dropping dead at a relatively young age (59) and never having done the things he dreamed of. As they say, people don’t plan to fail, they fail to plan. Good planning means you have a strategy to guide you for multiple outcomes. In my case I think a good plan allows you to enjoy life a bit if you miss a milestone instead of simply soldiering on in a death march mentality.

As far as a state goes, you really need to look at the financial health of any state you declare residency in. In particular you want to look at their public sector pension and healthcare obligations and how they are funding those and how it may impact you. Right now for example, IL is in a death spiral due to pension and healthcare obligations. It Is not a state you would want to buy a home in because the property taxes are approaching 4-5% of property value now in some areas and act as a drag on appreciation.

But you also need to look at the way you think your investments will lay. Since I had hoped to retire early that translated to a lot of money in taxable accounts. So in that case, Tennessee would have been a poor state for my purpose because of the Hall income tax (I know it is going away now). Low as the property taxes are in TN, and as healthy as their pension system is overall

(https://www.cnbc.com/2017/10/18/state-p ... u-owe.html)

the way they then taxed dividends and interest made TN unpalatable to me. However with the Hall tax going away it is fast becoming a destination to me. But you really need to picture where you finances may be in ten or twenty years in terms of residence.

Cheers mate.

WanderingDoc
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by WanderingDoc » Sat Dec 23, 2017 4:04 am

MrPotatoHead wrote:
Fri Dec 22, 2017 6:01 pm
01) Live well below your means and invest at least 20% of your gross a year.
02) Avoid getting married as it is an uncontrollable risk factor.
03) Target retiring in your mid 40s with a contingency plan of 50 and another contingency of 55.
04) Choose your state of residence carefully.
Could you elaborate on point #2?
I'm not looking to get rich quick (crypto), I'm not looking to get rich slow (index funds).. I'm looking to get rich, for sure (real estate).

Dottie57
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by Dottie57 » Sat Dec 23, 2017 9:11 am

HomerJ wrote:
Fri Dec 22, 2017 11:30 am
1. Live below your means

2. Save half your raises (if you get a $5000 raise, increase your life-style by $2500, and your savings $2500 - after 10-20 years, you'll be saving a ton, and still increasing your lifestyle each raise).

3. Recognize when you have "enough" (at that point you can stop increasing your lifestyle).

4. Age in bonds. This will slowly move you to a more conservative portfolio as you near retirement.

5. Do not try to time the market. Just stay with your asset allocation through thick and thin. Stay the course.

6. Be grateful for all that you have.
I agree with this post a lot. Number 3 is really important. I might move number 6 to a higher position. I actually saved all of my raises until I maxed my 401k.

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Top99%
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by Top99% » Sat Dec 23, 2017 12:26 pm

HomerJ wrote:
Fri Dec 22, 2017 11:30 am

3. Recognize when you have "enough" (at that point you can stop increasing your lifestyle).

6. Be grateful for all that you have.
These two in particular are important and often are overlooked in my opinion. To help get there understanding what truly makes you happy helps a lot. For example, would you be happier with a $X car/house or happier with a $.5X car/house and retiring Y months earlier?
My wife and I put a lot of deep thought into this and as a result downsized our housing and cut back our expenses on material goods a lot. This freed up money for savings and spending money on things we both really enjoy.
Adapt or perish

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Tycoon
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by Tycoon » Sat Dec 23, 2017 12:30 pm

Experts are often wrong. Buy the market and hold for years.
...I might be just beginning | I might be near the end. Enya | | C'est la vie

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mickeyd
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by mickeyd » Sat Dec 23, 2017 12:35 pm

Save early.
Save often.
Stay the course.
Read this site.
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle

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VictoriaF
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by VictoriaF » Sat Dec 23, 2017 12:56 pm

Sandtrap wrote:
Fri Dec 22, 2017 11:15 am
Happy New Year. :sharebeer
Congratulations on everyone's successes.
Personal and Financial Milestones are evident in so many threads. :D

What actionable financial and career steps would you pass on to others following in your footsteps?
1.
2.
3.
4.
Happy New Year, Sandtrap, and congratulations with your successes!

My recommendations from the perspective of a financially independent retiree are as follows:
1. Keep track of your assets to notice and react to major changes.
2. Keep track of your spending to ensure that you live below your means and to make adjustments in response to major changes in the assets.
3. Spend on the quality of your life. This includes "don't save" if the process of saving affects the quality of your life.
4. Be grateful.

I do #1, #2, and #4 diligently. Since my retirement three years ago, markets were rising and I have not had the need to curtail my expenses. But if a 2008-2009-like situation develops, I have a strategy to protect my assets in the absence of employment income.

#3 is not easy. I am spending more time than I would like to on optimizing my expenses and looking for sales, bonuses, and rewards. I could spend this time on worthier pursuits. But it's very difficult not to react when you know that you can save money, even when you don't need to save that amount of money.

Victoria

beardsworth
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by beardsworth » Sat Dec 23, 2017 1:25 pm

Spend less time on the Internet, and

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VictoriaF
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by VictoriaF » Sat Dec 23, 2017 1:31 pm

beardsworth wrote:
Sat Dec 23, 2017 1:25 pm
Spend less time on the Internet, and
Enjoy whatever follows the "and"!

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

Hulu
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by Hulu » Sat Dec 23, 2017 11:00 pm

1. Practice mastering yourself
2. Practice being mindful
3. Practice gratitude
4. Practice joy
5. Practice generosity
6. Practice health
7. Practice laughter
8. Move away, not towards beliefs/things/people that drag you down

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GerryL
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by GerryL » Sat Dec 23, 2017 11:08 pm

Top99% wrote:
Sat Dec 23, 2017 12:26 pm
HomerJ wrote:
Fri Dec 22, 2017 11:30 am

3. Recognize when you have "enough" (at that point you can stop increasing your lifestyle).

6. Be grateful for all that you have.
These two in particular are important and often are overlooked in my opinion. To help get there understanding what truly makes you happy helps a lot. For example, would you be happier with a $X car/house or happier with a $.5X car/house and retiring Y months earlier?
My wife and I put a lot of deep thought into this and as a result downsized our housing and cut back our expenses on material goods a lot. This freed up money for savings and spending money on things we both really enjoy.
This is pretty much what I would have contributed if I had joined the thread earlier. Yes, very important and often overlooked.

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Watty
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by Watty » Sat Dec 23, 2017 11:26 pm

It fits in with the New Year theme.

Keep a simple spreadsheet where you calculate your net worth each year of January 1st. This will help you track the progress you are making.

LFKB
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by LFKB » Sat Dec 23, 2017 11:30 pm

4 simple letters to live by...

YOLO!

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Sandtrap
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Re: Happy New Year. Congratulations on your progress! What success tips do we pass on to others?

Post by Sandtrap » Sun Dec 24, 2017 1:42 am

HomerJ wrote:
Fri Dec 22, 2017 11:30 am
1. Live below your means

2. Save half your raises (if you get a $5000 raise, increase your life-style by $2500, and your savings $2500 - after 10-20 years, you'll be saving a ton, and still increasing your lifestyle each raise).

3. Recognize when you have "enough" (at that point you can stop increasing your lifestyle).

4. Age in bonds. This will slowly move you to a more conservative portfolio as you near retirement.

5. Do not try to time the market. Just stay with your asset allocation through thick and thin. Stay the course.

6. Be grateful for all that you have.
Could not have said it better.
#3 used to be a struggle post retirement. Getting off the grindstone, taking off the yoke, taking a step out of the hamster wheel. Stop waking up at 5:00. Feels good.
#6 DW and I have been truly blessed with what we have.
j :D

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