That's fine and something I do as well. I use VIG and dividends funds in all my accounts.
OT: Stock and Investment Thread
- Thread starter RU05
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Breaking away can be tough for many. Especially if you're in an "intense" environment wherein you're acclimated to the pace, stress, and social elements. And for some, their identity is tied to their career. Unplugging can be deflating and even frightening for some. That said, I did so at 60 and never looked back. On the other hand, it's much better to walk away from a career when you are financially sound, as well as healthy and have prepared yourself for the next phase.
I hope when you talk about your “fun accounts” you have some real skin in the game. Nothing worse than the guy that goes to Vegas and “wins big” - then you find out he’s betting $10 a hand and playing nickel slots and came home up $500.
I had a contributory pension so there is a point where it makes no sense to stay working where I was. I found another job in an area I like and I also have a small business. Both allow me a lot of flexibility time wise
My being available also allowed my wife to increase her business.
Just looked at the corresponding Vanguard funds.....roughly 500% vs. 400% return in favor of the S&P 500. Close, but even with advantageous timing for utilities, still behind. Also looks like utilities were more volatile, if that is important to you.
Know and work with people like that. They are terrified of retirement because that’s their identity. I’m a lot younger but also had health issues before. I also have younger kids that’ll keep me busy
People always say.....you should have a plan before you make the leap!
It is all relative. My concern with this type thread is that some folks may act and invest per the stated perfect strategic plays by posters and perfect timing etc. I think they readily give themselves away. But still....
The biggest predictor of happiness.....not money, not even family, it's physical health.
Fun account is about $100k. 60% invested, the rest waiting for the right moment.
I’m in an investing discord group where there’s a thread “post your losers.” It’s everyone’s favorite thread and very therapeutic to visit
"Total" health. Not just physical but emotional as well.
The study focused on physical health. However, this is somewhat semantics since mental health is a leading indicator of physical health. I worked in the mental health space for 5 years.....from SZ to MDD to everything in between. I understand.
You need a plan on how you will fill your day
That even is not perfect after you are retired a long time from what I see
My dad has been retired 28 years and early on his plan was great but over time with age it gets more difficult
So my plan was keep busy with 2 flexible jobs I can do for years
Daily workouts or hiking
Gardening but not overwhelming
Take some time to read every day
Some time with our granddaughter
Spend time with my parents at least once a week
Catch a weekly movie or bowling for fun
Between my full time job pre retirement and the commute I had 50 to 55 hours to fill
Some of the time is just filled by a little more sleep and a slow easy morning of not having to rush out.
I’m similar..while I have a time frame I’m working more towards a number so that can either be accelerated or prolonged.
My minimum is $5mm which would comfortable but I’m aiming for $7mm which will happen in next 11-15yrs. $5mm should be achieved around 57-58 so in 11-12yrs
Just a "head's up" for those interested in capitalizing on the current 9.62% I-Bonds. You have until the end of this month (October) to gift up to $10k at the current 9.62% six-month rate.
As an example, for married couples, even if you both already purchased your $10k I-Bond limit for 2022, you can purchase an additional $10k I-Bond each and "gift" it to your spouse via TreasuryDirect.
That additional $10k each, however, will count toward your $10k 2023 I-Bond limit.
Why do this? You lock into that 9.62% 6-month rate now (in Oct '22) which rolls into 2023. At the end of that 6-months your rate will adjust to the new I-Bond rate that will be established next month (November). The I-Bond interest rate will fall in November, so you gain an advantage, at least for 6-months.
Complicated? A just a bit. Lastly, you will eventually (next year) have to transfer your gifted I-Bond to your spouse, i.e. transfer it from your TreasuryDirect account to hers, and vice versa.
As an example, for married couples, even if you both already purchased your $10k I-Bond limit for 2022, you can purchase an additional $10k I-Bond each and "gift" it to your spouse via TreasuryDirect.
That additional $10k each, however, will count toward your $10k 2023 I-Bond limit.
Why do this? You lock into that 9.62% 6-month rate now (in Oct '22) which rolls into 2023. At the end of that 6-months your rate will adjust to the new I-Bond rate that will be established next month (November). The I-Bond interest rate will fall in November, so you gain an advantage, at least for 6-months.
Complicated? A just a bit. Lastly, you will eventually (next year) have to transfer your gifted I-Bond to your spouse, i.e. transfer it from your TreasuryDirect account to hers, and vice versa.
Sounds like I-Bonds will drop to ~6% for the next 6 month period. Look for under 4% for the following period. Remember, I-Bonds absolutely sucked for the past 6-7 years. Also, the $10k limit is a killer.
November I-Bond rate likely to come in at/around 7.9%. They adjust again on May 1, 2023. Predicting the May rate? C'mon, man. In any case, you buy in Oct '22 and you get the 9.62% for six months, then 7.9% for the next six months, then the May 1, 2023 rate for six months. As for penalties, you have to hold the bond for at least one year from issue date. Cash after one year, you forfeit the last three months of interest. Hold for five years to avoid any penalty.
Implied November 2022 I Bond inflation rate (with no further changes): 6.03%
6% is not exactly horrible. But on Nov 1, we'll revisit. I believe it'll be higher.
Whether it is 6 or 7%, the $10k limit makes it more of a novelty than a real investment option. We have about $14k in I-Bonds from a while ago.....just letting the cash ride. We are waiting for CDs to peak and then move some of our cash into them.
You may be missing the cumulative point. A couple can buy $40k combined in October. $10k each and then gift each other $10k each. $40k at 9 62% for 6 months and then 6 months at 7%. That's "real"....
Down a little early this morning.
I'm not sure how optimistic the market is for a cooler then expected inflation print.
I think it would be good sign if we didn't see a rally and the market just waited for the numbers.
But the algos might have other plans.
Lebron 2.0. These clowns will support China for as long as they keep putting money in their pockets.
IDC how much it is = both Lebron and Elon are billionaires.
I’ve thought 3200 could be the absolute bottom and 3000 would pretty hard to break through but he’s thinking 2800 is possible if you take 20% off current levels.
Asked for his views on the outlook for the S&P 500, Dimon said the benchmark could yet fall by “another easy 20%” from current levels, adding that “the next 20% would be much more painful than the first.”
https://www.cnbc.com/2022/10/10/jpmorgan-jamie-dimon-warns-us-likely-to-tip-into-recession-soon.html
Asked for his views on the outlook for the S&P 500, Dimon said the benchmark could yet fall by “another easy 20%” from current levels, adding that “the next 20% would be much more painful than the first.”
I think he’s working the Fed because that would be a huge correction. Another 20% on top of the current ***-kicking would mean big trouble.
Or .. is he prepping an excuse for a looming drop in JPM's business? That "hurricane" he had previously forecasted in soon to landfall right at Msr. Dimon's doorstep?
20% is closer to 2,880 or 2,900 (40% off the high) . Very possible. It would be painful because whatever stocks you think is a safety stock will be hit hard.
And while 20% is the minimum drop used to characterize a bear market, the S&P falls by an average of roughly 35% in a bear market. “Being less than six months into this…Jun 30, 2022
65% of 4,800 is 3,120. This bear market is suppose be a lot worse.
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If that happens, it may be the greatest opportunity in a generation! So far, this is just a typical bear market. Real inflation is up a bit, but the crash is 100% pure Fed overreaction (just like 2018). The last true bear was because the entire financial system was crashing. Night and day!
She's right you know:
Lots of folks agree with her. The Fed has always been stupid and now they are throwing a hissy fit because they screwed the pooch in 2021.